The Federal National Mortgage Association in a Changing Economic Environment
RCED-85-102
Published: Apr 15, 1985. Publicly Released: Apr 15, 1985.
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Highlights
Pursuant to a congressional request, GAO reported on: (1) how the secondary market for residential mortgages is changing and the Federal National Mortgage Association's (FNMA) role in that market; (2) the privileges and constraints that affect FNMA in its public-purpose role and its profitability as a shareholder-owned corporation; (3) the interest rate and credit risks that FNMA incurs; and (4) how the Departments of Housing and Urban Development (HUD) and the Treasury, as federal regulators, oversee FNMA activities.
Recommendations
Matter for Congressional Consideration
Matter | Status | Comments |
---|---|---|
To improve the regulatory, oversight, and evaluation functions relative to FNMA, Congress should establish by legislation a permanent oversight function within HUD or some other federal regulatory entity that will monitor FNMA activities, evaluate how well it performs its public policy objectives, and periodically report to Congress on these matters. |
Closed – Implemented
|
Congress took no action on this recommendation. |
To improve the regulatory, oversight, and evaluation functions relative to FNMA, Congress should clarify in legislation the regulatory role it desires, particularly as regards aspects of FNMA operations such as its portfolio operations which expose the federal government to financial risk. |
Closed – Implemented
|
Congress took no action on this recommendation. |
Congress should provide GAO with the authority to audit FNMA financial records and evaluate its programs with the right to access all FNMA corporate records. |
Closed – Not Implemented
|
Congress took no action on this recommendation. |
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Topics
Housing programsInterest ratesLending institutionsMortgage loansMortgage programsMortgage-backed securitiesUS government securitiesMortgagesMortgage marketMortgage credit