Federal Housing Finance Agency(FHFA)

Agency

Legal Definition of Federal Housing Finance Agency

independent regulatory agency in the executive branch charged with overseeing the Federal Home Loan Bank system, a nationwide system of banks, savings associations, credit unions, and insurance companies that make long-term home mortgage loans. The FHFA's mission is to ensure that federal home loan banks remain adequately capitalized and operate in a safe and sound manner. It prescribes rules and conditions under which the banks may provide loans, regulates the banks' financial management and investment activities, supervises federally mandated community investment and affordable housing programs, conducts performance reviews and financial audits, appoints bank directors, approves payment of dividends, and generally ensures that the banks carry out their housing finance mission. In the secondary mortgage market the FHFA deals with the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac), all of which are government or government-sponsored agencies specializing in mortgage-backed securities (MBSs).

Learn More about Federal Housing Finance Agency

Cite this Entry

“Federal Housing Finance Agency.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/Federal%20Housing%20Finance%20Agency. Accessed 20 Sep. 2020.

Comments on Federal Housing Finance Agency

What made you want to look up Federal Housing Finance Agency? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

Test Your Vocabulary

Homophone Quiz

  • three bears two of them look like theyre whispering to a third bear who looks chuffed to be the center of attention
  • In order to judge how people felt, the senator's office hired a firm to take a ______.
Spell It

Can you spell these 10 commonly misspelled words?

TAKE THE QUIZ
Syn City

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!