Federal Housing Finance Agency FHFA

As the housing market collapsed, Congress passed the Housing and Economic Recovery Act, signed on July 30, 2008, creating the Federal Housing Finance Agency from two weaker regulators. Weeks later, on September 7, 2008, FHFA placed Fannie Mae and Freddie Mac into government conservatorship, with the Treasury committing to cover their losses in exchange for preferred stock. FHFA is led by a single Director appointed by the President and confirmed by the Senate.

Fannie Mae and Freddie Mac buy mortgages from lenders and package them into securities, backing roughly half of all U.S. home loans, while the eleven Federal Home Loan Banks lend to banks and insurers. FHFA supervises their safety and soundness, sets their capital requirements and the size of loans they can buy, and, as conservator, controls Fannie and Freddie's boards and major decisions. Its policies on guarantee fees, credit scores, and loan limits shape mortgage costs for millions of borrowers.

In Collins v. Yellen, decided on June 23, 2021, the Supreme Court held that the law protecting FHFA's Director from removal except for cause was unconstitutional, making the Director removable at will by the President. In 2025 the administration revived plans to end the conservatorships and sell shares in Fannie and Freddie to the public, while the Director drew controversy by referring several public officials to prosecutors for alleged mortgage fraud. Supporters said releasing the companies would return them to private hands, while critics warned it could raise mortgage costs and leave taxpayers exposed.