second semiannual report

8/3/2019 Second Semiannual Report

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F E D E R

A L

H O U

S I NG F I N AN C E A G E N C Y

O F F I C

E O F I N S P EC T O

R G E N E R

A L

FHFA

OIG

Federal Housing Finance Agency

Office of Inspector General

Semiannual Report to the Congress A 1, 2011, Sb 30, 2011



F E D E R A L

H O U

S I NG F I N AN C E A G E N C Y

O F F I C E O

F I N S P EC T O R G E N

E R

A L

FHFA

OIG

Federal Housing Finance Agency Oice o Inspector General

Semiannual Report to the Congress A 1, 2011, Sb 30, 2011



Table of Contents

FHFA-OIG’ M A M Ic G 1

Excv Sy 3Ovvw 4

FHFA-OIG R Rqm 8

Oz h R 9

Sc 1: Dc FHFA-OIG 11Lh Oz S 12

FHFA-OIG’ S P 15Pm P Oz G 15

Sc 2: O FHFA d GSE 17FHFA 18

FHFA Ah 18

F M F M 19

FHLBk 24

S FHFA Pm Av 26

Sc 3: Acc d Sy FHFA-OIG 35FHFA-OIG A Ev Av 36

FHFA-OIG A Ev P 48

FHFA-OIG Iv Av 49

FHFA-OIG Iv S 53

FHFA-OIG R Av 53

FHFA-OIG Cmm Oh E 56

Sc 4: FHFA-OIG Rcd 63

A Ovvw H Fc Pc 71Fm h M 72

D 75

F I E 79

F Av 86

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Adc 91Ax A: G Am 92

Ax B: Im Rq b h I G A 105

Ax C: FHFA-OIG R 109

Ax D: FHFA-OIG Oz Ch 110

Ax E: E 112

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FHFA-OIG’s Mission

T m h F H F A O IG (FHFA-OIG) : m h m, , v F H F A (FHFA h A) m ; v , w, b FHFA m ; vw , , mm ; k mv , v v, m h b , w, b whh m FHFA.

I m, FHFA-OIG bjv, v, v, k m, v; k h h FHFA, C, h Am m bm FHFA m ;

wk bv wh FHFA m h FHFA m .

Federal Housing Finance AgencyOce o Inspector General 1625 Eye Street, NW

Washington, DC 20006-4001 Main (202) 408-2544 Hotline (800) 793-7724 www.haoig.gov

i | FHFA-OIG’s Mission



A Message rom the Inspector General | 1

Semiannual RepoRt to the CongReSS | SeptemBeR 30, 201

A Message from the Inspector General

T FHFA-OIG Sm R v h ’ v

h m A 1, 2011, hh Smb 30, 2011.

T h ’ h mk m . Fh, h h Gvm-SE (GSE) – h F N M A (FM), h F Hm L M C (F M), h F Hm L Bk (FHLBk) – b k h mk. FHFA h h m.I v h GSE’ , FHFA hw h v F M F M (h E) m h h . D h , h vm hmm xm $169 b h E, hb

h v.

FHFA-OIG v bjv m h wk FHFA. S h b Ob , h 10 , whh v mb m .FHFA-OIG FHFA wh v mhm wh mvm h b m. B FHFA-OIG’ FHFA h f w hm. F, h whhFHFA h wk b h E wh v h wk, hb E -mk. S, h

whh FHFA’ m hv b vh E v. A h wk h , x h h A m h GSE.

T h v w m m mbm m . FHFA-OIG’ w m b v m v whh , B & Whk hm – m h m hm h – whh F M m xm $1.8 b. C, FHFA-OIG vv v m v h .

W m m h v v w z h m wk. W k w wk wh hh h vm m h C, FHFA, h.

Sv A. Lk I GOb 31, 2011

St A. Lnck

Inspector General o the Federal

Housing Finance Agency



2 | A Message rom the Inspector General

Federal Housing Finance agency oFFice oF inspector general



executive summary



4 | Executive Summary


Executive Summary

Overview

T Sm R h FHFA-OIG m A1, 2011, hh Smb 30, 2011.

FHFA h h h GSEs: FM, F M, h F Hm L Bk Sm (FHLBk Sm), whh m 12 FHLBk. FHFA h bh v h E Smb 2008.

A v, FHFA’ w :

• k v h h wh hw h hh, , h ;

• v v h h .

FHFA h x h w b xv mmb h E’ b , w vw v xv m E h$50 m.

FHFA h v v mv hE’ , m h , h hvb m h m mk. F xm,FHFA, h Dm H Ub Dvm (HUD),

h E v m v.O h b h , FHFA b mm wv m m v. A,FHFA, bh h E, v w 18 v m h mk private-label mortgage-backed securities(MBS) h E. T w h h v m m w h hh E h.

E T FHFA-OIG R

A m FHFA-OIG’ m m

FHFA’ m m vh GSE . FHFA-OIG k m b m FHFA,h GSE, h . I h h bjv, FHFA-OIG hbh 10 v Smb 30, 2011.

T FHFA’ wk v , bh v. F xm, FHFA-OIG h :

For a description o the Government-Sponsored Enterprises, see Section 2: “Operations o FHFA

and the GSEs.”

Government-Sponsored Enterprises (GSEs):

Busnss oganzatons chatd and

sponsod by th dal gonmnt that

nclud Fann Ma, Fdd Mac, and th

FHLBanks.

Mortgage-Backed Securities (MBS):

MBS a dbt scuts that psnt

ntsts n th cash os – antcpatd

pncpal and ntst paymnts – om

pools o motgag loans, most commonly on

sdntal popty.

Private-Label MBS:

MBS dd om motgag loan pools

assmbld by ntts oth than GSes

o dal gonmnt agncs, such as

pat-scto fnanc compans. Thy do

not cay an xplct o mplct gonmnt

guaant, and th pat-labl MBS

nsto bas th sk o losss on ts

nstmnt.

a The Inspector General Act o 1978, 5 U.S.C. App. 3 § 5,

requires that each inspector general compile a report o

operations or the preceding six months or the periods

ending March 31 and September 30.



Executive Summary | 5

Semiannual RepoRt to the CongReSS | SeptembeR 30, 201

• FHFA h m golden parachute m w m E xv;

• v h FHFA’ h b mm wh h Mk Hm Ab (MHA) m;

• FHFA h k m h q xm;

• FHFA h k h m mv E h mv, hb E ;

• FHFA h v FHFA-OIG’ mm mv FHFA’ v vb , w, b.

O h h h, FHFA-OIG h FHFA, h f w

hm. F, FHFA m h E wh v hm, hb v E -mk. S, FHFA’ m hv b v h E v.A bw, bh hm hv m m .

I FHFA H N Iddy d d Vdd EDc-Mk

I , FHFA-OIG whh FHFA h E -mk. Wh q v , FHFA h h

E : (1) F M’ m m hm vv Bk Am; (2) h E’ MHA; (3) h E’ xv m; (4) m h E.

T A’ h f h v m b h E. I h , vw v h E.Hwv, FHFA-OIG h m m m w vvm b h A.

FHFA Dd Fdd Mc’ Ay Rc C Ex

A h 2010, FHFA v $1.35 b m mh m F M Bk Am. I vh m, FHFA F M’ h m

wh h m h E’ x vw . A FHFA-OIG h FHFA m b FHFA xm b m F M’ x vw m h m.1

T xm w h h vw F

For more inormation about FHFA’s approval

o Freddie Mac’s repurchase claim settlement

with Bank o America, see pages 36-37 o this

report, or examine the ull text o the ealuaton

o th Fdal Housng Fnanc Agncy’s

Osght o Fdd Mac’s rpuchas

Sttlmnt th Bank o Amca.

Golden Parachute:

A tm usd to dscb spcal

compnsaton aangmnts, such as cash,

spcal bonuss, stock optons, o stng o

pously aadd compnsaton, btn

a company and ts sno xcuts n cas

th company s acqud o an nddual

s fd o noluntaly spaatd.

http://www.fhfaoig.gov/Content/Files/EVL-2011-006.pdf













M h m q h m h h bm.A h xm, h h E

b m m.

FHFA Pvdd Ld Ov E’ Ad H Adb Mdc P

T Dm h () h MHA m.A k v MHA h Hm Ab M Pm(HAMP), whh vv v m m bw . I 2009, h E b HAMP. T m m h v- m wh m h m v’ m wh m qm. A FHFA-OIG

h FHFA mv m v h h v- m.2 FHFA bv w h E w hz m HAMP, v bw h E . T, FHFA m bv vw v h m’ b,k, h b h E v ’ .

T k m m hv b h m’ m m h E, h hb, v . A q h m, bm v h m m hb, q FHFA h E v b m v mb.

FHFA Dd N Fy Ayz Fc Rd Excv C F M d Fdd Mc

F 2009 2010, h E w h x v $35m m. FHFA vw v h mw b h E’ m mm.Hwv, FHFA-OIG h FHFA v hm b whh h E h mm mv h mh hv xvm .3 T h w v m h h mk

whh m w h b f h v v h E.

FHFA D N P Sfc c E Acv

h mh m b xm v m b h , w m wh b w

For more inormation about FHFA’s oversight

o the Enterprises’ executive compensation,

see pages 28-29 o FHFA-OIG’s inaugural

Semiannual Report, or examine the ull text

o the ealuaton o Fdal Housng Fnanc

Agncy’s Osght o Fann Ma’s and Fdd

Mac’s excut Compnsaton Pogams.

For more inormation about FHFA’s examination

capacity, see pages 37-39 o this report,

or examine the ull text o the ealuaton o

whth FHFA Has Sufcnt Capacty to

examn th GSes.

For more inormation about FHFA’s oversight

o the Enterprises’ relationships with Treasury,

see pages 40-42 o this report, or examine

the ull text o the ealuaton o FHFA’s rol n

Ngotatng Fann Ma’s and Fdd Mac’s

rsponsblts n Tasuy’s Makng Hom

Aodabl Pogam.

http://www.fhfaoig.gov/Content/Files/Exec%20Comp%20DrRpt%2003302011%20final,%20signed.pdf

























. A xm w b vw ’ h v m w m. D v FHFA’ xm h

GSE, FHFA m kw FHFA-OIG h xm m b E m h h vh hh .4

II FHFA’ Rc Ac My Hv Acd I Aby Ov GSE d Ec I Dcv

I , FHFA-OIG whh FHFA’ m hv b v h GSE v. F xm, FHFA m hv w xm m vh b. I , FHFA m hv h m m w

m k h m m h GSE. A, FHFA-OIG h FHFA ( wh , h O F HE Ovh (OFHEO)) h m v m b F M, whh h b v mm v k mm m.

FHFA My N Hv E Ex M I Ry dCv Ov Rb

FHFA h b wh h GSE v b h E. hb, C v FHFA b h

h. Nh, FHFA-OIG h FHFA-OIG hv h h A’ xm v, h w b b m FHFA .5 IA vw b h FHFA h w xm h v xm m. A, 34% h A’ xm xm.FHFA h k m h q xm, b mv qk v h . L w, xm,h A D mm b FHFA’ v m . T ,

whh xm mm xm m, h FHFA’ v m.

Fh, hh FHFA’ -m h 44 h v v, FHFA-OIG h h b whh h mb xm

w b FHFA vm xm h h h A’ 2011 z xm .

For more inormation about FHFA’s examination

capacity, see pages 37-39 o this report,

or examine the ull text o the ealuaton o

whth FHFA Has Sufcnt Capacty to

examn th GSes.

For more inormation about FHFA’s

organizational restructuring, see page 33 o this

report.












FHFA Dd N Ac Sfc Rc Hd C C

D h h mk, FHFA OFHEO x b m mb h E. A mb h m mm b b .b Hwv, FHFA-OIG h FHFA q mm.6 T b FHFA bh m . F xm, FHFA-OIG h FHFA w m – -m b – h m m.

FHFA Dd N Idy d Add Nw d E Rk Py Ic GSE

FHFA b h mhv xm v , b b - v v, w b b m-2010. FHFA h v k wh b . Hwv, FHFA-OIG h h w m m-2010 h hv FHFA h hh k b.7 T h vm (whh m h hh mk), m m m ,m m b b b h E’

w m, b hhh h b.

FHFA H N Ecd Dcv Rd F M’ O Rk P

Bw 2006 2011, FHFA OFHEO hF M h bh b v operationalrisk mm m A qm .8 FHFA b h v. Hwv, FHFA-OIG h FHFA k v mF M’ m.

FHFA-OiG rePOrTiNG reQUireMeNTS T I G A h h q, h A 30 Ob 31 h , m mmz h v h/h h x-mh Mh 31 Smb 30. T qm, h I G A, Ax B.

For more inormation about FHFA’s oversight o

the Enterprises’ deault-related legal services

activities, see pages 42-43 o this report, or

examine the ull text o FHFA’s Osght o

Fann Ma’s Dault-rlatd Lgal Scs.

For more inormation about FHFA’s oversight o

Fannie Mae’s management o operational risk,

see pages 39-40 o this report, or examine the

ull text o the ealuaton o FHFA’s Osght o

Fann Ma’s Managmnt o Opatonal rsk .

Operational Risk:

exposu to loss sultng om nadquat

o ald ntnal pocsss, popl, and

systms, o om xtnal nts (ncludng

lgal nts).

c The Inspector General Act o 1978, 5 U.S.C. App. 3 § 5.

For more inormation about FHFA’s handling

o consumer complaints, see pages 47-48

o this report, or examine the ull text o the

Audt o th Fdal Housng Fnanc Agncy’s

Consum Complants Pocss.

b For example, in June 2008, an investigative reporter

complained that a mortgage lender, Taylor, Bean & Whitaker, with which Freddie Mac did a large volume

o business, was raudulently selling loans. The

complaint was not properly pursued by FHFA, and it was

not reerred to law enorcement. Due to an unrelated

investigation, in April 2011, a jury convicted the lender’s

chairman o participating in a multibillion dollar scheme

against Freddie Mac and others, as described urther on

page 49.

http://www.fhfaoig.gov/Content/Files/AUD-2011-004.pdf


















T bv-b A 1, 2011; w ; FHFA-OIG’ vv v; h FHFA, FHFA-OIG, GSE vm h Sm R.

OrGANiZATiON OF THiS rePOrT

T Sm R z w:

• S 1, Description o FHFA-OIG , v b vvw hz.

• S 2, Operations o FHFA and the GSEs, b h z FHFA, F M, F M, h FHLBk b vm FHFA-OIG’ vh h z.

• S 3, Accomplishments and Strategy o FHFA-OIG , bFHFA-OIG’ vh v, , v, v. I FHFA-OIG’ h .

• S 4, FHFA-OIG’s Recommendations, FHFA-OIG mm mv h FHFA h GSE. I v h mm h mm.

A, h Sm R , bk, An Overviewo the Home Foreclosure Process. T vvw h h b h wh x hm

v x h hh-, v h h .



section 1

DESCRIPTION OF FHFA-OIG



12 | Section 1: Description o FHFA–OIG


Section 1: Description of FHFA-OIG

FHFA-OIG b Ob 12, 2010. Ebh b h

H Em Rv A 2008 (HERA), whh m hI G A, FHFA-OIG , v, , v, h v h m FHFA.

LeADerSHiP AND OrGANiZATiONAL STrUCTUre

T FHFA I G, Sv A. Lk, w m b P Bk Obm A 12, 2010; m b h S Smb 29, 2010; w Ob 12, 2010. P mm v h FHFA I G, M. Lk v m2006 2010 v h h Dm J(DOJ). Pv, M. Lk w A U.S. A, hC D C (1994-1999), bq h ED V (1999-2006).

FHFA-OIG m h I G, h , h FHFA-OIG . FHFA-OIG’ hO A (OA), h O Ev (OE), h O Iv (OI). O wh z-w b h Exv O (EO) h O Am (OA).FHFA-OIG’ z h b Ax D.

Ofc AdOA v v vh m FHFA. Th m m, OA k : (1) m m,, v h m FHFA’ m; (2) , w, b FHFA’ v ; (3) m wh b w . U hI G A, q m wh hGovernment Auditing Standards, mm h “Yw Bk,” b h Gvm Ab O (GAO). OA m m wh h Yw Bk.

Ofc Ev

OE v bjv vw, , FHFA’ mm v. OE’ v m m m qk h .

T I G Rm A 2008 q h h h Quality Standards or Inspection and Evaluation, mm h “B Bk,” b h C h I



Section 1: Description o FHFA–OIG | 13


G I E (CIGIE). OE m v wh h B Bk.

Ofc Iv

OI v m vv h m FHFA h GSE. OI h CIGIE’ Quality

Standards or Investigations b h A G.OI’ v w m mv, v, m v w . T FHFA-OIG v b m, , vv w FHFA’ h GSE’ m . , OI h m m v v, whh b h m b. T v vv h ,m , w , , bk , m , m, b j, m , x v.

I v v m v, OI w h m DOJ b v m m .I mv m , OI w w h h mm m. OI vv b m.

Fh, OI m FHFA-OIG’ H, whh vb v m , w, b FHFA’m . T H w

George Grob, currently Deputy Inspector General or Evaluations, delivers an instructional seminar

on evaluations.





h FHFA-OIG . OI h b whbw . A w , OI v m h H hh h FHFA-OIG wb,

, -m FHFA GSE m, h SmR.

Excv Ofc

EO v h mm FHFA-OIG v.

EO h O C (OC). OC v h h v h I G FHFA-OIG b v v, , FHFA-OIG’ m . OC vw , v, v

m wh FHFA-OIG’ . I vw FHFA mm . A, OC wh h FHFA O GC m FHFA-OIG’ q m h Fm Im A h Pv A.

EO h O P, Ovh, Rvw (OPOR), whhv v, , FHFA-OIG’ h v, , h bh . I, OPOR b vh Sm R.

Ofc AdOA v mm vh FHFA-OIG’ mv, hm , b vm x, mm, m h, mm, , . Wh hm, OA v , v, x, wh mh k m v z v mhm bjv.R FHFA-OIG’ b mm, OA b x v FHFA-OIG’ mm m .

OA v mv h Ch S hD I G A h m FHFA-OIG’ IMm Am Pm, whh q h h FHFA-OIG m wh b qm.A, FHFA-OIG’ Eq Emm O m h OA.

The FHFA-OIG Hotline can be reached at

(800) 793-7724 or via e-mail at

[email protected].



Section 1: Description o FHFA–OIG | 15


FHFA-OiG’S STrATeGiC PLAN

O Smb 7, 2011, FHFA-OIG bh S P bjv; vm m ; bhm mhm; b; .FHFA-OIG w m v, mk h SP m w, v m v FHFA, h GSE, C, h Am .

Wh h S P, FHFA-OIG h v h wh FHFA’ .

Sc G 1 – Add V

FHFA-OIG w m h m, , v FHFA’ m FHFA kh

v bm h vh h h hm.

Sc G 2 – O W Iy

FHFA-OIG w m h FHFA’ h GSE’ m hh h v , w, b.

Sc G 3 – P Pdcvy

FHFA-OIG w v q v kh

b m v q m h FHFA-OIG’ wh .

Sc G 4 – V FHFA-OIG Ey

FHFA-OIG w mxmz h m m hz.

PerFOrMANCe PLAN AND OrGANiZATiONAL GUiDANCe

FHFA-OIG h v mm A PmP, whh bjv, mb m h FHFA-OIG’ . T A Pm P b hz’ hv m h m m h w b m . I FHFA-OIG’ mj mm h. FHFA-OIG v,q , m m wh hbhmk h h A Pm P.

FHFA-OIG h v m m h . T m h m

The ull text o the Strategic Plan is available at

www.haoig.gov/Content/Files/Strategic%20

Plan.pd .

http://www.fhfaoig.gov/Content/Files/Strategic%20Plan.pdf










h m h ’ b h h FHFA-OIG’ .



section 2

OPERATIONS OF FHFA AND THE GSE




18 | Section 2: Operations o FHFA and the GSEs

Section 2: Operations of FHFA and the GSEs

FHFA HERA w J 30, 2008, h m h . I FHFA h OFHEO h F HF B (FHFB). OFHEO h b bh 1992 F M F M. P HERA’ m, OFHEO h wh HUD. FHFB w bh 1989 h h ’ 12 FHLBk. FHFA w v F M, F M, h FHLBk.

FHFA AUTHOriTieS

HERAU HERA, FHFA v h GSE’ . HERA hzFHFA :

• ensure the GSEs operate “in a safe and sound manner, includingm q ;”

• establish criteria for investments the GSEs may hold in their;

• establish risk-based capital requirements for the GSEs;

• require the GSEs to increase their capital;

• review and approve GSE executive compensation;

• review and approve any new products that Fannie Mae or FreddieM ;

• establish aordable housing goals for Fannie Mae and Freddie Mac;

• enforce compliance with housing goals; and

• appoint itself conservator or receiver of the GSEs.

O Smb 6, 2008, wk HERA’ m, h E w vh v b FHFA h . A v, FHFA m h w hhh, , , wh h v vh h E.9

HERA x h h v h GSE.10 A h m h vh w , x h h wh b mk preerred stock vm F M F M Senior Preerred Stock Purchase Agreements (PSPAs) .

Preerred Stock:

A scuty that usually pays a fxd ddnd

and gs th hold a clam on copoatanngs and assts supo to that o

holds o common stock, but no to

that o nstos n th copoaton’s dbt

scuts.

Senior Preerred Stock Purchase

Agreements (PSPAs):

entd nto at th tm th

consatoshps catd, th PSPAs

authoz th entpss to qust

and obtan unds om Tasuy, und

a pd stock nstmnt aclty o

ach entps. Und th PSPAs, th

entpss agd to consult Tasuy

concnng a aty o sgnfcant

busnss actts, captal stock ssuanc

and ddnd paymnts, ndng th

consatoshps, tansng assts, and

aadng xcut compnsaton.



Section 2: Operations o FHFA and the GSEs | 19


Ecy Ecc Sbz Ac

S h E w vh, h , h Em Em Sbz A(EESA) w Ob 3, 2008. Wh h h mk,EESA v hm v vm, vhmwh m m wh, mxmz hx.11

v hmwh, EESA q FHFA mm mxmz hmw h h v F M F M m k v m mmz .12 I , EESA qFHFA wh hmw bm mh C h .

FANNie MAe AND FreDDie MAC

F M w h 1938 h b h U.S. h m mk. F M w h 1970

wh m m v b h ’ mmk x hm wh b h.

A F 1 ( 20) , F M F M h ’ h m hh h secondary mortgage market.Nh E mk hm bw; h, bk, , h hm .G, h m h h w bk. I, h conventional conorming mortgage loans F M F M. T Eh v q m .

T E z h h h b hm MBS, whh h v. A h z , v’ k, h Eguarantee m h MBS xh . Av, h E m h h h MBS h w vm , whh hh bb.

T E hv h b m implied guarantee h h vm w v h b.13 A h E w vh, h v bm x.14 A , v m, h bw h E h b w h h h -m.15

Primary Mortgage Market:Th makt o nly ognatd motgags.

Secondary Mortgage Market:

Th makt o buyng and sllng xstng

motgags; ths could b n th om o

hol motgag o MBS sals.

Both th pmay and sconday motgag

makts a o-th-count makts –

th s no cntal xchang. rath, loans

a bought and sold though psonal and

nsttutonal ntoks.

Conventional Conorming Mortgage

Loans:

Conntonal motgag loans a motgags

that a not nsud o guaantd by

th Fdal Housng Admnstaton, th

Dpatmnt o vtans Aas, o th

Dpatmnt o Agcultu and that mt

th entpss’ undtng standads.

Conomng motgag loans ha ognal

balancs blo a spcfc thshold, st

by la and publshd by FHFA, knon as

th “conomng loan lmt.” Fo 2011,

th conomng loan lmt s $417,000 omost aas o th contguous Untd Stats,

although gnally t can ncas to a

maxmum o $625,500 n spcfc hgh

cost aas.

Guarantee:

A pldg to nstos that th guaanto ll

ba th dault sk on th collatal pool o

loans, thby nsung th tmly paymnt

o pncpal and ntst od to nstos.

Implied Guarantee:

Th assumpton, palnt n th fnancal

makts, that th dal gonmnt ll

co GSe dbt oblgatons.





Wh h vm’ , h E hm h h mk h h

v- h mk , F 2 .

Figure 1. Mortgage Origination and Securitization Process





E Fc Pc d Gv S

A F 3 ( 22) , q hm m, h w b h E, b 2007 h v 2009.

Figure 2. Primary Sources o MBS Issuances rom 2000 to 2010($ trillions)

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

20082007 2009 201020052004 200620022001 20032000

0.1

0.4

0.1

0.2

0.9

0.3

0.3

0.9

0.1

0.4 0.4

1.3

0.1

0.1

0.1

0.9

0.9

0.1

0.9

1.2

0.1

1.1

1.0

0.7

0.1

0.8

1.1

0.2

1.3

0.4

0.2

1.9

0.6

Enterprise MBS Non-Agency MBSGinnie Mae MBS

Source: Inside Mortgage Finance, 2011 Mortgage Market Statistical Annual.





A h q, v h E. A hw F 4 ( 23), h h w vh, 2008, h E mb $109 b, h x h mv h 21 . T E hv

m , hh h m h mh $28 b 2010.

F m mv bh E h h 2011, hh bh m . F M $9.4 b h h 2011,

wh F M $1.4 b h . Tmb h h 2010 w $12.8 b $11.4 b, v.

Seriously Delinquent Mortgages: (90+ Days Delinquent) - Fannie MaeSeriously Delinquent Mortgages: (90+ Days Delinquent) - Freddie Mac

0%

2%

1%

3%

4%

6%

5%

201120102009200820072006200520042003200220012000

Figure 3. Enterprise Delinquency Rates 2000 to 2011

Sources: Fannie Mae, Monthly Summary (online at www.anniemae.com/ir/monthly/index.jhtml) (accessed Oct. 20, 2011); Freddie Mac, Monthly Volume Summaries (online at

www.reddiemac.com/investors/volsum/ ) (accessed Oct. 20, 2011); Freddie Mac, Financial Archives (online at www.reddiemac.com/investors/archives.html#mvs)

(accessed Oct. 20, 2011).

http://www.fanniemae.com/ir/monthly/index.jhtml

http://www.freddiemac.com/investors/volsum/

http://www.freddiemac.com/investors/archives.html#mvs

http://www.freddiemac.com/investors/archives.html#mvs

http://www.freddiemac.com/investors/volsum/

http://www.fanniemae.com/ir/monthly/index.jhtml




SEMIANNUAL REPOR O HE CONGRESS | SEPEMBER 30, 2011

h , vm h E 2008 h b . F 5 ( 24) bk w, b q,

’ vm h E hh Smb 30, 2011. h v $169 b h PSPA. I wh h m h PSPA, h E m mk q vm q 10% h

vm. T h 12% , q, h v h, v hv b h. , h h vm h E h v m . A Smb 30, 2011,$32.1 b ’ vm h b v bk . FHFA m, b h E’ j , h

’ vm hm m $220 b $311 bhh 2014.16

Fannie MaeFreddie Mac

2008 2009 2010 20112004 2005 2006 20072002 20032000 2001

$(120)

$(100)

$(80)

$(60)

$(40)

$(20)

$0

$20

1996 1997 1998 19991994 19951988 1989 1990 1991 1992 19931986 1987

Sources: Federal Housing Finance Agency, 2008 FHFA Annual Report to Congress , at 110, 127 (online at www.ha.gov/webfles/2335/FHFA_ReportToCongress2008508rev.pd ) (accessedSept. 23, 2011); Fannie Mae, 2009 and 2010 Fannie Mae 10-K Reports , at F-4 (online at www.anniemae.com/ir/sec/index.jhtml?s=SEC+Filings ) (accessed Sept. 23, 2011); Freddie Mac,

2009 and 2010 Freddie Mac 10-K Reports, at 208, 174 (online at www.reddiemac.com/investors/sec_flings/index.html ) (accessed Sept. 23, 2011); Fannie Mae, 2011 Fannie Mae Second

Quarter 10-Q Report , at 94 (online at www.anniemae.com/ir/pd/earnings/2011/q22011.pd) (accessed Sept. 23, 2011); Freddie Mac, 2011 Freddie Mac Second Quarter 10-Q Report , at

102 (online at www.reddiemac.com/investors/er/pd/10q_2q11.pd ) (accessed Sept. 23, 2011).

Figure 4. Enterprises’ Annual Net Income (Loss) 1986-2010and the Six Months Ended June 30, 2011

($ billions)

http://www.fhfa.gov/webfiles/2335/FHFA_ReportToCongress2008508rev.pdf)

http://www.fanniemae.com/ir/sec/index.jhtml?s=SEC+Filings

http://www.freddiemac.com/investors/sec_filings/index.html

http://www.fanniemae.com/ir/pdf/earnings/2011/q22011.pdf

http://www.freddiemac.com/investors/er/pdf/10q_2q11.pdf

http://www.freddiemac.com/investors/er/pdf/10q_2q11.pdf

http://www.fanniemae.com/ir/pdf/earnings/2011/q22011.pdf

http://www.freddiemac.com/investors/sec_filings/index.html

http://www.fanniemae.com/ir/sec/index.jhtml?s=SEC+Filings

http://www.fhfa.gov/webfiles/2335/FHFA_ReportToCongress2008508rev.pdf)





Add Gv S

T E b m x vm m h h mk v. S Smb 2008, h F

Rv hv h m h $1.3 EMBS, h F Rv h h $135 b b b h E.17

FHLBANKS

T FHLBk Sm w 1932 mv h vb m . T FHLBk Sm m 12 FHLBk h O F, whh b h FHLBk’ bh.18 T 12 FHLBk h h m h mm z .19

T h h m h FHLBk Sm hw hm F 6 ( 25).

T 12 FHLBk v z. Eh FHLBk v w b h mmb v, whh

Freddie Mac Fannie Mae Combined

Period Covered

Tasuy

instmnt

Und PSPA

Ddnds Du

Tasuy Und

PSPA

Nt Captal

Podd to

entps

Tasuy

instmnt

Und PSPA

Ddnds Du

Tasuy Und

PSPA

Nt Captal

Podd to

entps

Tasuy

instmnt

Und PSPAs

Ddnds Du

Tasuy Und

PSPAs

Nt Captal

Podd to

entpss

Thd Quat 2008 $13.8 $0.0 $13.8 $ 0.0 $0.0 $0.0 $13.8 $0.0 $13.8

Fouth Quat 2008 30.8 0.2 30.6 15.2 0.0 15.2 46.0 0.2 45.8

Fst Quat 2009 6.1 0.4 5.7 19.0 0.0 19.0 25.1 0.4 24.7

Second Quarter 2009 - 1.1 (1.1) 10.7 0.4 10.3 10.7 1.6 9.1

Thd Quat 2009 - 1.3 (1.3) 15.0 0.9 14.1 15.0 2.2 12.8

Fouth Quat 2009 - 1.3 (1.3) 15.3 1.2 14.2 15.3 2.4 12.9

Fst Quat 2010 10.6 1.3 9.3 8.4 1.5 6.9 19.0 2.8 16.2

Second Quarter 2010 1.8 1.3 0.5 1.5 1.9 (0.4) 3.3 3.2 0.1

Thd Quat 2010 0.1 1.6 (1.5) 2.5 2.1 0.4 2.6 3.7 (1.1)

Fouth Quat 2010 0.5 1.6 (1.1) 2.6 2.2 0.4 3.1 3.8 (0.7)

Fst Quat 2011 - 1.6 (1.6) 8.5 2.2 6.3 8.5 3.8 4.7

Scond Quat 2011 1.5 1.6 (0.1) 5.1 2.3 2.8 6.6 3.9 2.7

Thd Quat 2011 - 1.6 (1.6) - 2.5 (2.5) - 4.1 (4.1)

Total as ofSeptember 30, 2011

$65.2 $14.9 $50.3 $103.8 $17.2 $86.6 $169.0 $32.1 $136.9

Source: Federal Housing Finance Agency, Data as o September 30, 2011 on Treasury and Federal Reserve Purchase Programs or GSE and Mortgage-Related Securities (online at www.

ha.gov/webfles/22692/TSYSupport09302011.pd ) (accessed Oct. 7, 2011). Nonzero numbers may display as zero due to rounding.

Figure 5. Treasury Capital and Dividends Due Under PSPAs ($ billions)

http://www.fhfa.gov/webfiles/22692/TSYSupport09302011.pdf








Figure 6. Map o the Regional FHLBanks

, h mm bk, h, m, . Eb v k h FHLBk bm mmb. FHLBk k b .20

T m b h FHLBk v h mmb whw- m h . , hFHLBk mk ( v) mmb. FHLBk v vb v m . Sh v collateralized b -m m , vm-, , m , m b . I v m v h FHLBk.

T FHLBk m vm m- , m hh k h h v-b MBS.

mmb v, h FHLBk b hhh O F.21 I h v b b,h FHLBk jointly and severally liable b hFHLBk. Lk F M F M, h FHLBk Sm h h j b mm m h m vm b b.

Source: Federal Home Loan Bank o Boston, The Federal Home Loan Bank System (online at www.hlbboston.com/aboutus/ thebank/08_01_04_hlb_system.jsp ) (accessed Sept. 23, 2011).

Collateral:

Assts usd as scuty o a loan that can

b szd by th lnd th boo als

to pay th loan.

Joint and Several Liability:

Th concpt o jont and sal lablty

pods that ach oblgo n a goup s

sponsbl o th dbts o all n that

goup. in th cas o th FHLBanks, any

nddual FHLBank unabl to pay a

cdto, th oth 11 ould b qud to

stp n and co that dbt.

http://www.fhlbboston.com/aboutus/thebank/08_01_04_fhlb_system.jsp







FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECOR GENERAL

SeLeCTeD FHFA PrOGrAMS AND ACTiviTieS

FHFA-OIG w vm h m FHFA h GSE. A mb vm bw.

C L L

T E q b w h -m m wh b bw h m m. A Ob 1, 2011,h mxmm m m hh -m $625,500 m $729,750. A q b HERA, Ob 1, 2011, w h m hh m bh b FHFA. T m m hm w 115% h m hm , mxmm $625,500 -m h U S.22

M Svc C

C v m m h h m v m hmw. I , J 2011, FHFA j v

wh h E HUD vw v m servicers. T m h v w :

Servicer:

Scs act as ntmdas btn

motgag boos and ons o th

loans, such as th entpss o MBS

nstos. Thy collct th homons’

motgag paymnts, mt thm to th

ons o th loans, mantan appopat

cods, and addss dlnquncs o

daults on bhal o th ons o th

loans. Fo th scs, thy typcally

c a pcntag o th unpad pncpal

balanc o th motgag loans thy sc.

Th cnt fnancal css has put mo

mphass on scs’ handlng o daults,

modfcatons, shot sals, and oclosus,

n addton to th mo tadtonal duty

o collctng and dstbutng monthly

motgag paymnts.

For more inormation on the conorming loan

limit, see page 19 o this report.

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

2008 20112007 2009 201020052004 200620022001 20032000

Soucs: Fdal Housng Fnanc Agncy, 2008 FHFA Annual Report to Congress , at 141 (onln at .ha.go/bfls/2335/FHFA_ rpotToCongss2008508.pd) (accssd Spt. 23, 2011);

Fdal Hom Loan Banks, 2010 Federal Home Loan Banks Combined Financial Report , at F-5 (onln at .hlb-o.com/ob_uswb/soucs/10ynd.pd) (accssd Spt. 23, 2011); Fdal Hom

Loan Banks, 2011 Federal Home Loan Banks Combined Financial Report , at F-3 (onln at .hlb-o.com/ob_uswb/soucs/11Q2nd.pd) (accssd Spt. 23, 2011).

Figure 7. FHLBanks’ Annual Net Income 2000-2010and the Six Months Ended June 30, 2011

($ billions)

http://www.fhfa.gov/webfiles/2335/FHFA_%20ReportToCongress2008508rev.pdf

http://www.fhlb-of.com/ofweb_userWeb/resources/11Q2end.pdf

http://www.fhlb-of.com/ofweb_userWeb/resources/11Q2end.pdf

http://www.fhfa.gov/webfiles/2335/FHFA_%20ReportToCongress2008508rev.pdf





• improve service for borrowers;

• reduce nancial risk to servicers;

• provide guarantors exibility for better management of non-m ;

• promote continued ease of trading for MBS investors.

T j v x v h m v m, whh x h v ’ b. I h v h m h v bm b mm.

O Smb 27, 2011, FHFA w v m vm b mm. O w

v wh h v m v-m v . T v w --v m m. T h --v m k v m m v m.FHFA k mm h w 90 m h h m.23

Pv-Lb MBS Lw

O J 27, 2011, FHFA bh h E UBSAm, I. (UBS), v , v UBS m.Sbq, Smb 2, 2011, FHFA h 17

v m:

• A F I., m kw GMAC, LLC

• Bk Am C

• B Bk PLC

• C, I.

• Cw F C

• C S H (USA), I.

• Dh Bk AG • F Hz N C

• G E Cm

• Gm Sh & C.

• HSBC Nh Am H, I.

• JPM Ch & C.





• M Lh & C./F Fk F C.

• M S

• Nm H Am I. • T R Bk S G PLC

• S G

T w m v m h m w . T w v , , mm w h v-b MBS h b hE. T h E’ vm v m m . Rh, vm h E m v-b MBS h w b h m m .

FHFA’ m h h m m q h underwriter h . T w h h m’ m mm m b h m h v-b MBS, m qhz h m bw’ wh, h q h , v v h .

FHFA k m v h S A 1933 w v v b hE vm h m’ MBS . I h

A F I., Cw F C, Dh Bk AG,G E Cm, Gm Sh & C., JPM Ch & C.,M Lh & C., M S, UBS, FHFA k vm.24

Bk Ac Pv-Lb MBS S

O J 29, 2011, Bk Am w $8.5 b 22 v m h h w q MBS.

T MBS vv h m w b Cw F, whh w h b Bk Am 2008. O A 30, 2011,FHFA, bh h E, A C

Obj h m bw Bk Am h 22 v h m. FHFA h bj b m h m.Hwv, FHFA w w b whh w bv bj h m. FHFA h m’ v m mvm

w v x m h mb mk h . B bm ,FHFA v h bj h m h h .25

Underwriter:

in th contxt o th scuts makts,

an undt s an ntty that puchass

nly ssud bonds om th ssu and

slls thm to nstos. in th ol as

maktng and sals agnts, undts

ha spcfc oblgatons to dsclos

accuat and ptnnt nomaton about

such bond ongs, many o hch a

statd n th Scuts Act o 1933.





D R E Owd P

FHFA, , HUD Rq Im (RFI)

A 11, 2011, h v -m real estate owned (REO) h b h E h FH Am (FHA). A J 30, 2011, h Ev w 196,318 REO .26 T h RFI h m x m h REO v, v vm h h mk, mxmz

v x, b h .

T RFI k bk :

• reduce the REO portfolios of the Enterprises and FHA in a cost-v m;

• reduce average loan loss severities of the Enterprises and FHAv v ;

• address property repair and rehabilitation needs;

• respond to economic and real estate conditions in specic regions;

• assist in neighborhood and home price stabilization eorts; and

• develop analytic approaches to determine the appropriate disposition v , whh , , , m.

FHFA, , HUD hv h h RFI’ bjv b

b hv hh “REO ” h :• programs for previous homeowners to rent properties or for current

bm w;

• strategies through which REO assets could be used to support markets wh m b vm REO.

T ,, v vm.27 T RFI v bw $50 m $1 b v, bh-m mm REO . T

w Smb 15, 2011.28

Real Estate Owned (REO):

Foclosd homs ond by gonmnt

agncs o fnancal nsttutons, such as

th entpss o al stat nstos.

reO homs psnt collatal szd to

satsy unpad motgag loans. Th nsto

o ts psntat thn must sll th

popty on ts on.





Sdd & P’ Dwd

S & P’ R Sv (S&P), m credit rating agency , A 5, 2011, h h -m v

b w w AA+ m AAA. , S&P h mj k h . O h h w mj , M’ Iv Sv (M’) m A b A 2, 2011, Fh R(Fh) m AAA A 16, 2011. Hh b b bw h b mk m w .

A h w, h k (.., h wh) h GSE w m “v” b S&P. O A8, 2011, S&P w h F M F M AA+ m AAA. A, h 10 h 12 FHLBk h FHLBk Sm’ b w w AA+ m AAA.S&P h h w w h ’ h U.S. vm.29

I h w h GSE’ b, FHFA’ A D h h w w hv FHFA’ k-b h GSE.30

C R Fd C Ob

O A 5, 2011, FHFA h h 12 FHLBk h h b R F C (RC)

b m 1989 1991. RC b w hz b C h h v .U h m m, h vm qh FHLBk RC $300 m w m h RC b. S 1999 h FHLBk h b q 20% – b b h FHLBk’b h m – v h RC b.

I h v, h 12 FHLBk J CEhm Am Fb 28, 2011. U h m ’ m,b Smb 30, 2011, h FHLBk w 20% m h b

q 1% h bk’ b. Amm w v b h FHFA A D A 5, 2011, mk h h FHLBk’ .FHFA m h FHLBk’ m wh h .31

Bk Ac Svc R

O A 3, 2011, FHFA, v, v FM’ m xm $500 m Bk Am

Credit Rating Agency:

Cdt atng agncs pod thopnons on th cdtothnss o

nsttutonal boos and th fnancal

oblgatons. whl th Scuts and

exchang Commsson cognzs 10 cdt

atng agncs as Natonally rcognzd

Statstcal ratng Oganzatons, 3 (S&P,

Moody’s, and Ftch) a consdd th most

pomnnt. Th cdt scals usd o

long-tm oblgatons (thos o 13 months

o long) a lstd blo, dscndng om

hghst-atd to lost:

Moody’s S&P Fitch

Aaa AAA AAA

Aa1 AA+ AA+

Aa2 AA AA

Aa3 AA- AA-

A1 A+ A+

A2 A A

A3 A- A-

Baa1 BBB+ BBB+

Baa2 BBB BBB

Baa3 BBB- BBB-

Ba1 BB+ BB+

Ba2 BB BB

Ba3 BB- BB-

B1 B+ B+

B2 B B

B3 B- B-

Caa1 CCC+ CCC+

Caa2 CCC CCC

Caa3 CCC- CCC-

Ca CC CC

C C C

D D

Hgh-qualty, “nstmnt gad” dbt s

atd Baa3/BBB- o hgh; lo-atd

oblgatons a typcally d to as

“hgh-yld” o “junk” dbt. A “D” om S&P

o Ftch ndcats actual dault.





h v h m w b F M m Bk Am h v. I h mh h v, mmb C h hv q b

h m. FHFA’ A D h b h h v h m F M Bk Am.32 FHFA-OIG vw h .

FHFA 2010 A R

O J 13, 2011, FHFA v 2010 Report to Congress, whh FHFA’ xm F M, F M, h FHLBk Sm.

F M F M h v m xm f “ v .” FHFA

m 2005 hh 2007 h k, k,m k, h k h bh E. Wh FHFA’ vh , h h, h vh FHFA v , h E hv mv w h h w . I , “h w FHFAmmz w q h E x w h m wh .”

Wh h FHLBk Sm, FHFA b h v h FHLBk B, Ch, Pbh, S “[]

v ,” wh h FHLBk A S F v h w m m . TFHLBk C, D, D M, I, Nw Yk,

k w b “.” A, FHFA’ vw hFHLBk’ O F v v . FHFA h “hh h m hFHLBk bz 2010, h FHLBk bv b x v-b MBS v( mmb).”33

Svc A Iv

O A 28, 2011, FHFA h Sv Am Iv, whh h E h v q m h w . H, h E h h qm h q . T w vk bh , v qm . I h v xm m,

w m m.34 I q v: bw , q mm, m, m.

For more inormation on the role o the servicersee page 75 o this report.

For urther inormation on private-label MBS,

see page 4 o this report.

FHFA-OIG recently released an evaluation

(ealuaton o th Fdal Housng Fnanc

Agncy’s Osght o Fdd Mac’s

rpuchas Sttlmnt th Bank o Amca) discussing Freddie Mac’s settlement with Bank

o America on repurchase claims.

FHFA-OIG plans to conduct several reviews

centering on the FHLBanks, including such

topics as advance and collateral management,capital, troubled banks, organizational structure

and aordable housing programs.











• Bw Cc T w v , m q bw h v h hmw. I v v v’ bw

m, h m. T v h h kw “Q Rh P C,” whh h v m bh wh hbw; m h h q, h bw’ h , h h b mk h mm; m x h bw m; b mmm vh q. T v m b b v h h h wh h q , h E’ q.

• Dqcy M T w v h m

qm h v m kw v bw, q .Sv m v bw m b hv m, h ,

wh m b h. A, h mv h m h m b , h HAMP Hm Ab F Av (HAFA),m h bw. T m mm mh w v bw wh hh h q .

• L Mdc Bh E m m

v bh b F M h v v bw m, mb h m , m qm, b .

• Fc T w h m zh m whh h E m h v m.35

A FHFA, h Sv Am Iv v v bw wh m bwmm, m,

, v b, , m, x hh mv v.

Rk R P

O Mh 31, 2011, h F Rv B, HUD, h F DI C (FDIC), FHFA, h O h Cm h C, h S Exh Cmm (SEC) mm h k- qm h

As noted in urther detail in Section 3, FHFA-OIG

has recently released reports discussing the perormance o Fannie Mae’s Retained Attorney

Network and its management o operational

risks.

d The relevant announcement is Fannie Mae Servicing

Guide Announcement SVC 2011-03, Updates to Fannie

Mae’s Mortgage Modifcation Requirements , published

April 4, 2011.





D-Fk W S Rm Cm P A 2010(D-Fk A). T D-Fk A q w b , MBS, h 5% h

k h , h m . T D-Fk A v x h qm, h xm MBS z xv b q m (QRM).

T w m h QRM v hh q, b h bw h, mm, --v .

T v qm m m v v h wh w m m wh k- qm. L, w h h E’

w q k h E

vh vh wh m h vm.36 Cmm h w h b A 1, 2011.37

FHFA Oz Rc

FHFA mm z h m ; h z w Fb 2, 2011. A FHFA, h m m h xm h GSE.A h z, w h m m w m vv h vh, m v,

b h GSE’ v, b h, h h m mk, v h D-Fk A.



section 3

ACCOMPLISHMENTS AND STRATEGY OF FHFA-OIG



36 | Section 3: Accomplishments and Strategy o FHFA-OIG


Section 3: Accomplishments and Strategy of FHFA-OIG

Fm A 1, 2011, hh Smb 30, 2011, FHFA-OIG v mhm. T : (1) h v ; (2) mb m v v; (3) vw mm FHFA .

FHFA-OiG AUDiT AND evALUATiON ACTiviTieS

D h m , FHFA-OIG h h , whh bf mmz bw.

Evaluation o the Federal Housing Finance Agency’s Oversight o FreddieMac’s Repurchase Settlement with Bank o America (EVL-2011-006,September 27, 2011)

I Dmb 2010, FHFA, v h E,v w m $2.87 b h mh m Bk Am. F M’ $1.35b m wh Bk Am v h m. F M F M hv h m m m , h Bk Am. T

whh h E h h m v hm wh h h q h h m h m h w

w b hm.FHFA-OIG b vw mmb C h qh q h m. D h vw, w v h b h F M-Bk Am m.

A, FHFA-OIG v h m.FHFA-OIG h FHFA mm m b F M’ vw m h m. S, FHFA-OIG mh :

• First, in mid-2010, prior to the Bank of America settlement, anFHFA xm b m F M’ x vw m hm, whh, h xm, F M b m m. F M’ b h h 2010. T m m b FHFAb h vv v F

The title o each audit and evaluation report in

this section is linked to the report posted on

FHFA-OIG’s website.







Section 3: Accomplishments and Strategy o FHFA-OIG | 37


M , m, h x. Fh, xm , h bm b .

• Second, FHFA did not act timely or test the ramications of these v h Bk Am m.FHFA-OIG v F M’ x vw , h, h b . Nvh, b F M’ h m wh h m hE’ x vw , FHFA m m hv m h k F M.

• ird, following the initiation of FHFA-OIG’s evaluation, FHFA, , E m hm m h F M vw m v h m h vw . A, h h v h b h . F xm, J 6, 2011, FM’ h h E’ v v h w “U.”Fhm, h 2010 h m-2011, F M m v h b h hE v m m h m m xv vw .

I h h , FHFA-OIG mm h FHFA:

• promptly act on the specic and signicant concerns raised by FHFA

F M b F M’ vw ;

• initiate management reforms to ensure that senior managers are m bh h.

FHFA wh FHFA-OIG’ mm, h h b k . Hwv, FHFA h “h h vw h h m w … b” wh h h b w mh .

Evaluation o Whether FHFA Has Sucient Capacity to Examine the GSEs (EVL-2011-005, September 23, 2011)

FHFA’ xm m h m m b whh v h GSE. T A’ 120 xm h mhh xm, b FHFA’ A D h hFHFA h w xm vh b.









I 2011, , FHFA h h xm. F, v h b 26 xm, whh

w h A’ xm b b 22%. S, FHFA

z h xm m h vh h GSE.

FHFA-OIG v bh h x FHFA’ xm h xm . FHFA-OIG h h A’ xm v, h REO - v. Fhm, mb FHFA A vw b h FHFAh w xm v h v xm m. D xm h, FHFA h bk wk xm, xm hv k mh h x m.

Fh, h v FHFA’ xm m k h xm. Ahh FHFA’ xmhv v k, A h 34% 120-xv xm xm. Hwv,h A hv m mvh . Oh , h h FDIC, q h xm b m mm.

FHFA h h h h. Ahh h v, h A h x h h v

w h b vm xm h h v 2011 z. F xm, FHFA’E xm m w b b 13 xmh – xm h h 20-25 xm h FHFA’ Ch OO m b . FHFA h h w bh xm h h 2011 z GSE xm .

Mv, FHFA h xm h m m. Gv FHFA’ b, h k C, h Exv Bh, h b m b xm .


• assess: (1) the extent to which examination capacity shortfalls may hv v GSE xm q (2) m k, h hv hm xm h xm ;

e Agency ofcials told FHFA-OIG that many o its

examiners have alternative credentials and experiences

in critical areas such as fnancial analysis, accounting,

and the mortgage industry, and that this proessional

diversity enhances the quality o FHFA’s work products,

including its examinations. Nonetheless, Agency ofcials

conceded that the lack o accreditation o many o its

examiners impedes the efciency and eectiveness o its

examination program.





• monitor the development and implementation of the examiner m k h;

• consider using detailees from other federal agencies, retired annuitants, m xm m h - m-m;

• report periodically to Congress and the public, which might includeh m x h A’ xm h, h h mb xm m b; h h, h xm m ; hvm mm xm m.

FHFA wh h mm h h b k h mm.

Evaluation o FHFA’s Oversight o Fannie Mae’s Management o Operational Risk (EVL-2011-004, September 23, 2011)

FHFA vw k mm m h h E. T A k h k m , , m, m x v (h b). I Smb 2008, FHFA q h E v mm m , , m k. Ev k

mm m FHFA’ xm h k h xm .

FHFA h F M h k q bh b v k mm m. FHFA-OIG v FHFA’ vh F M’ bh b k mm m.

FHFA-OIG h bw 2006 2011 FHFA OFHEO m h F M h bh b v k mm m qm . Nh, FHFA h k v m F M m b v k mm m. A F M’ v, FHFA’ h v h E b hb mv E m

wh A m. , FHFA h x h hh m F M’ m wh h k qm. I FHFA h h m hh v m, h k xm









M Rq A, whh w v h.

F M’ k b v k mmm m hv m h h vh w m wh whh . F xm, M 2006 , F M h bh F wh h m . T h h F M v hq ’ h k b hm.Nh, 2011 m , FHFA h F M h h mm mv vh h 2006 .

A FHFA, F M h m mvm

k m, h A x h h E whv b m h h q 2012.Gv F M’ h -m, FHFA-OIG bv h hA m x mxmm k F M m h A’ x h . Ohw,FHFA’ xm m, w h vh mm, m b v .


• closely monitor Fannie Mae’s implementation of its operational risk mm m;

• take decisive and timely actions to ensure the implementation of them F M bh b v k m b h h q 2012;

• ensure Fannie Mae has qualied personnel in place to administer its k mm m .

Wh FHFA wh h ’ mm, h b m hv b v h F M bh v k m. I , v h ,FHFA-OIG m h h w m vh hv, v, h b b .

Evaluation o FHFA’s Role in Negotiating Fannie Mae’s and Freddie Mac’s Responsibilities in Treasury’s Making Home Aordable Program (EVL-2011-003, August 12, 2011)

FHFA-OIG v FHFA’ vh h E’ MHA, v bh h . TE b MHA 2009. O k MHAm v, HAMP, vv m v m









m m (.., w h mh m) bw mm .

T E HAMP hh m h. T m h m h v ’ m (FAA).

Q h E’ MHA m.Sm h m h E m MHA

w h jz h wh q wh FHFA, mm h E’ v .

FHFA-OIG v h h bwFHFA h x FHFA’ vh E MHA m. FHFA-OIG v h whv mm MHA m h mmFHFA’ h E’ v . EESAq FHFA wh h vm v mm m m h HAMP. FHFAh HAMP m m h E’ b mmz . A h m m, FHFA h xhb b hb h E m hMHA m vw b wh h .

Hwv, FHFA v vw ’ FAA wh h E. T FAA

-m mmm m wh h wb b h E’ .Nvh, FHFA m vw h h E w hz h FAA vw h b.A q, k m w , h h h

wk b m b h E; h m whh h wb m; h v . S bmv h , q FHFA h E vb m h . T, FHFA-OIG h FHFA’ vh w hv b b v FHFAh m v h vw h FAA.

I 2010, , FHFA, h E v w mh vw v k h E h FAA.I mvm m h h FAA. Hwv, h k h v h h k h m

w b v .

I h h , FHFA-OIG mm h FHFA wh h E m h FAA b





whh h m h h E’ m HAMP bh b whh v m hm. I

, FHFA wh h mm. I h E () bh m .

FHFA’ Ov F M’ D-Rd L Svc (AUD-2011-004, Sb 30, 2011)

I 1997, F M bh R A Nwk (RAN) q - v wh , bk, m, v, REO . I A 2010, w h RAN h , h m

“b-.”FHFA mm vw F M’ RAN 2010 m whh h m m , v h mm h RAN,

vb . A Smb 30, 2011, FHFA h h vw.

O Fb 25, 2011, mmb C q h FHFA-OIGxm “w b b … w m h ” h RAN, F M’ FHFA’ “v h mm v .” P

h q, FHFA-OIG m FHFA’ vh F M’ - v m b w m whh RAN.

FHFA-OIG h FHFA h vh - v. FHFA z h m vh h E’ - v mm h wk m F M FM. Hwv, FHFA h mhv xmv , b b RAN w m, m-2010. FHFA h v k

wh b . I, FHFA

xm m hh-k, h hE’ mm k.

A, h w m-2010 h hv FHFA h hh k b wh FM’ RAN. T ,

whh m h h h mk, mm m , m m b b b F M’ w m, b

For more inormation on robo-signing, see page

80 o this report.







F wh hhh h b. Ahh Smb 30, 2011, FHFA’ mm h bh h vw F M’ RAN, h xm’ m

m h h – – h hv v q w h k wh - v.

FHFA v w hhk m h k wh whh m.FHFA h h k-b v xm v - v, z xm m xm v h v. Cq, FHFA hm h b w b v hh v v.

A, FHFA h v m m b w m h hv h – h hh hh v – wh bh E. FHFA-OIG whh F M m w m h bh m, b F M h m. FHFA vw h m ,h, k h w m wh h m jz h h E.


• review the circumstances surrounding FHFA’s not identifying theRAN b v hm w m k;

• develop and implement comprehensive examination guidance and h wh v - v;

• develop and implement policies and procedures to address poorm b - v v h hv h wh bh h E.

FHFA wh FHFA-OIG’ mm. Fw h , Ob 18, 2011, FHFA F M F M“ w m wk m mv m wh m v q w m hm mmm, m .”38





C Gd LLP’ Idd Ad Fd H Fc Acy’ Pvcy P d I – 2011 (AUD-2011-003, Sb 30, 2011)

T C A A 2005 q h h Ch Pv O (CPO) mm mhvv v , , h,, , , m m h b. A, h C A Aq h h vw h ’ mm h C A A.

A mhv v m h h k h, , m, personally identifableinormation (PII) m. A v m v mwk h m b h PII. A, v m h h mb z, , b b v h mmzh k PII.

FHFA-OIG wh C G LLP m b vw FHFA’ v m mm, m

wh h qm h PII. S b-bjv h w m whh FHFAmm mhv v

q b h C A A, whh PII.

T h FHFA’ v m h mb h,h h PII. Hwv, FHFA m h C A A’ k qm v mm mhv v . S, h h FHFA h :

• completed a required privacy program baseline report summarizingFHFA’ PII bh h mwk v (h w bm FHFA-OIG m wk A 2011);

• designed a job-specic privacy training program to ensure FHFAm m wh v b;

• established a process for timely publication of required System of R N (SORN) h b h x h h bj m PII b h bm;

Personally Identifable Inormation (PII):

inomaton that can b usd to dnty

an nddual, such as nam, dat o bth,

socal scuty numb, o addss.









• prepared Privacy Impact Assessments of all systems that contain PII m m m A- h PII w q h m’

vm mk ; • implemented a process for FHFA’s Privacy Oce to monitor

m m PII h .

A h v w h FHFA’ v m, h v m hm bh h , b hvb q PII .

T mm h FHFA’ v m b mv v v m, ,

m. Sv h mm m h v h hv b h A’ . Ab m , FHFA v m mm A h , , vb v m wh qm.

FHFA wh h ’ mm.

C Gd LLP’ Idd Ad Fd H Fc Acy’ I Scy P – 2011 (AUD-2011-002,Sb 29, 2011)

T F Im Sm Mm A 2002 (FISMA) q v, m, mm -w m m h m m m, h v m b h , , h . A, FISMA q v h m m m m wh FISMA. Mv, FISMA qh N I S h (NIS) m m, mmm qm. NIS h v m k mm mwk.

A, h O Mm B (OMB) h m , m (POA&M) m m, m , m v.POA&M v m mvm wh z v .









FHFA-OIG wh C G LLP m FISMA b v FHFA’ m m. T

bjv h w v h v FHFA’ m m m wh FISMA m , , , .

Ahh FHFA’ m m h mb h, b m m m , m-v , k m, hz, m, FHFA-OIG h mb bmv. S, FHFA h :

• nalized, disseminated, and implemented a NIST-recommendedz-w m m h

h k qm - b m ;

• updated its policies and procedures to address completely all of h NIS-mm m wh h mb h FHFA m m;

• developed, disseminated, and implemented an informationz mh;

• implemented adequate procedures for tracking and monitoring wk hh POA&M;

• implemented adequate procedures for ensuring remediation of

wk wk vb m.

A h m w h FHFA’ m m b hv b q vm .


• nalize the Agency-wide information security program plan;

• update policies and procedures to address all NIST requirements mm b h FHFA m

vm;• develop and implement an information categorization policy and

mh;





• establish a process to monitor compliance with procedures, includingm m POA&M;

• track and monitor remediation actions to address weaknesses wk vb m.

FHFA wh FHFA-OIG’ mm.

Ad Fd H Fc Acy’ C C Pc (AUD-2011-001, J 21, 2011)

T h h m x bw,mm, v wh q m, m, . A h m m, m m h h m whh E FHFA, h v . FHFA

m h 70-75% m wh h A h E.

A , C h x whh FHFAq m m , b m ,m vv , w, b. T m h mm b m m h E m v. FHFA-OIG hw FHFA m m.

FHFA-OIG h FHFA q mm. S, h A :

• suciently dene its role in processing complaints received by FHFA h E;

• develop and maintain a consolidated system for receiving and m;

• establish eective procedures for evaluating complaints alleging m h m w m h;

• consistently follow up on consumer complaints referred to theE;

• comply with its own records management policy;• perform routine substantive analyses to identify overall trends in

m h m m;

• comply with safeguards for PII received from complainants; or

• prioritize complaints or assess the timeliness of responses tom.









T b FHFA bh vm v m m, m m v b h A

h E. A, FHFA h m , q h ( w v m b h ), v v vh m h m (h A w b h mb m v h h h m). A , FHFA k hm, h , w, b, h m, w v m mmz k.


• draft and implement written policies, procedures, and controlsv h , , mm h, m h h, h b FHFA h E v wh FHFA-OIG ;

• assess the suciency of resources allocated to the complaints process;

• determine whether there are unresolved complaints alleging fraud orh m v.

FHFA wh FHFA-OIG’ mm.

FHFA-OiG AUDiT AND evALUATiON PLAN

FHFA-OIG m A Ev P h h FHFA’ h k v h b FHFA, C, h b.O v wh m , h- k m, h A Ev P f bk mFHFA-OIG’ vw v mm m FHFA ,mmb C, h.

B, FHFA-OIG’ v vw hw FHFA v:

• Regulatory eorts and its management of the Enterprisevh. A v m , m v , mm . T

FHFA-OIG’s plan is dynamic and will be revised as

necessary.





hh-k b h v $169b x h E. A v, FHFAm v h E , v,

m mmz x , vE , m m.

• Oversight of the FHLBanks and their associated risks, includingvm mm , w, m.

• Internal operations, such as privacy and allegations of fraud, waste, orb.

T A Ev P mb h vw FHFA m.

FHFA-OiG iNveSTiGATiON ACTiviTieSOI h m b m-v. A Smb 30, 2011, OI h 48 v

w. Wh m hm m , FHFA-OIG w m , whh , U.S. A’ O, w, hv b vhh- m v vv C Bk

, B & Whk M C (BW), Mh Hm M Bk, Hm Ow P Em, I.(HOPE). Eh bw.

C Bk d BW

O J 30, 2011, Lee Bentley Farkas, m hm w BW, w 30 . H w xm $38.5 m h $2.9 b hm hb h BW C Bk. H h v b v A 19, 2011, , w ,bk , .

BW , h, , v m . I MBS b F M hGvm N M A (G M). A m,

BW w h v h m m h U S. C Bk w h 25 bk hU S.

B 2002, BW b x h fw bm. I v h h, v

v hm h vv C Bk (whh vh-m m m k BW), OF LLC (O), BW , U.S. x.





B h m 2009, h h v $3 b mC Bk O, m m v $500 mm , m wh F M, G

M, h SEC. A, h v hv b w b C Bk F M wh C Bk h . A , h F M C Bk bv h h h v wh h h m . BW C Bk bh 2009. F M m $1.8b BW’ bk .

F hv h v x h h h hm:

• Paul R. Allen. O J 21, 2011, h m h xv

BW w 40 mh A 1, 2011, mm bk w mk m. T SEC hv h A v h SExh A 1934.

• Sean W. Ragland. O J 21, 2011, h m BW w h mh Mh 31, 2011.

• Catherine Kissick. O J 17, 2011, h m h CBk’ M Wh L Dv w h

Mh 2, 2011. T SEC h v h Kk v h S Exh A 1934.

• Teresa Kelly. O J 17, 2011, h m v C Bk’ M Wh L Dv w h mh Mh 16, 2011. A, K w bm m vm m. Hdebarment v b h h suspension, M 6,2011, hh M 5, 2014. T SEC h v h K v h S Exh A 1934.

• Raymond Bowman. O J 10, 2011, h m

BW w 30 mh Mh 14, 2011, mk m .

• Desiree Brown. O J 10, 2011, h m BW w x Fb 24, 2011. T SEC h v h Bw v h S Exh A 1934.

Debarment:

Dsqualfcaton o a fm o nddual

om contactng th th gonmnto patcpatng n gonmnt non-

pocumnt tansactons o a spcfc

pod o tm. Th gounds o dbamnt

nclud concton o aud o o smla

onss.

Suspension:

Th tmpoay dsqualfcaton o a fm

o nddual om contactng th th

gonmnt o patcpatng n gonmnt

pogams, pndng th outcom o an

nstgaton, an ndctmnt, o basd upon

adquat dnc that suppots clams opogam olatons.

A suspnson mans that an nddual

o ntty s mmdatly xcludd om

patcpatng n uth dal xcut

banch pocumnt and non-pocumnt

pogams. Suspnson quntly lads to

dbamnt.

For more inormation on suspension and

debarment, please see page 59 o this report.





I , Smb 27, 2011, w $3.5 b jm h v v h .Fk Bw w h b h m; A R w

h b $2.6 b; Bwm, Kk, K w h b $500 m. T $3.5 b jm j v b,m h h b m m hm m, v $3.5 b.

FHFA-OIG’ v h h O hS I G h b A R Pm (SIGARP),h FBI, h O I G h F DI C (FDIC-OIG), h O I G h Dm H Ub Dvm (HUD-OIG),I Rv Sv-Cm Iv (IRS-CI), h SEC.

T F Cm Em Nwk (FCEN) v

vv . A, h b b hF S h Cm Dv DOJ h U.S. A’ O h E D V.

M H d M Bdck

O J 1, 2011, Mh E. Hm, , Az, w b hFBI FHFA-OIG S A m m h U.S. D C h D Az h hm wh w m bk. H w h h J 13, 2011. O Smb 7, 2011, Hm h w, M E. Bk,

w h m.

Hm Bk h “Iv Rh P;M R Sv.” Hm Bk h v $500, mk h . T wb v h h v wh h v w bm “ v bk q.”

T m h h Mh 20, 2011, Hm h U.S. Bk C Iv P Bk,

whh h h U S bk. A h m, Hm Bk h Bk C h h h m v $250 b h U

S. Sbq, Hm Bk b hU.S. Bk C 173 m v h “M R Sv.” M h bk mvv b h E.

I , Hm h m “F N MA” wh h Az S S m. T FN M A h m F M. Hm w hz v F M hv h





v w b h E. Y, Hm Bk b wh h hb q b F M. T m

F M h “I Rh P.” Hm Bk w b F M. Hm Bk wh 28 , v v $8 m. T wh h E’ h h, hm .

F, h m h Hm Bk h h , wh hm whh h w . T v b j b h FBI FHFA-OIG.

H Ow Pc Ecc, Ic

O A 8, 2011, v w 20-m h w h U.S. D C h D Mh, h Chh S. G, D Bh, F;D Fh, Hh Bh, F; V B J., BBh, F; B M. K, B R, F, wh ,

w , m , m vm .

A h m, G w h Fh w h v F m HOPE. B wh m m HOPE mk, K w h mk w h HOPE mk.

T m h m J 2009 hh M 2011, h m, h m mk, m hmw k hm m HOPE $400–$900- xh HOPE’ hm m, mv, “w .” M h hmw’ h b h E. A h m,h m m h hmw w v , wh HOPE’ , v m h vm ’ HAMP. A m hmw h HOPE w wh h hmw’ m ,

h h hmw h b v hm m, hhmw mk m m wh h w HOPE h m, h HOPE w hm’ h m w .

I xh h - , HOPE m -- k h w h HAMP, whh h vm v h. HOPE m h bm h m





. A h m, h HOPE m wh hv m m h v h , , , m h w .

Th h m, HOPE w b h hmw v m h $3 m . T b j v wh h U.S. A’ O h D Mh, SIGARP, IRS-CI, h U.S. Mh Sv, h O h A G F, h Pm Bh C Sh ’ O, h D Bh, F P Dm.

FHFA-OiG iNveSTiGATiONS STrATeGY

A m, FHFA-OIG w m 48 -b v. FHFA-OIG v h wk h wh h w m ,

DOJ h U.S. A’ O, FCEN, DOJ MF Wk G (MFWG), h S Sv, h FBI, HUD-OIG,FDIC-OIG, IRS-CI, SIGARP, h , , .D h , OI wk wh FCEN vw m w- v mh h U S whh FHFA-OIG m v h GSE. Dw h FCEN h k w FHFA-OIG m v wh h hh k . FHFA-OIG w vvh h m v. S,FHFA-OIG w U.S. A’ O FHFA-OIG

vv – wh b m x – wh h FHFA-OIG’ v. I, FHFA-OIG h k w m h mb .

FHFA-OiG reGULATOrY ACTiviTieS

C wh h I G A, FHFA-OIG whh FHFA v, ,m, , b b. Fm A 1, 2011,hh Smb 30, 2011, FHFA-OIG vw 20 w FHFA v bv mm v,

whh bw.

1 J Acy S C’ Pd R Icv-bdExcv C (RIN 2590-AA42, FHFA-OIG CSbd Mc 28, 2011)

P S 956 h D-Fk A, v j q hv m

g It is FHFA-OIG policy to note that comments were made

on a “drat” rule during the semiannual period and then

ollow up with a substantive discussion o the rule in a

later semiannual report once the “drat” rule is completedand published. Three “drat” rules that FHFA-OIG noted in

its inaugural Semiannual Report have yet to be fnalized

FHFA Drat Final Rule on Executive Compensation

(RIN 2590-AA12); FHFA Drat Re-Proposed Rule on

Golden Parachute and Indemnifcation Payments (RIN

2590-AA08); and FHFA Drat Enterprise New Activity

Protocol (RIN 2590-AA17). The Joint Agency Steering

Committee’s Proposed Rules on Incentive-based

Executive Compensation , which also was noted in the

inaugural Semiannual Report, has been completed and

is discussed substantively herein.





h “v-b m m,” b h m h k-k.h FHFA-OIG mm h S 956 h D-Fk

A h “h b S 505 h Gmm-Lh-B” F SvMz A 1999 (Gmm-Lh-B), hm h v S 956. S 505 Gmm-Lh-B h v b h x FHFA b Gmm-Lh-B w xm b h bhm FHFA.

FHFA-OIG z, hwv, h FHFA h h m h h h D-Fk A Gmm-Lh-B. A, FHFA-OIG mm h FHFA: (1)m h h m S 956

m v-b m m (2) k mm S 505 Gmm-Lh-B.

FHFA bh h A 14, 2011. I ,FHFA h h m h mS 505 Gmm-Lh-B m h “Ah I” h S 1319G h F H E F S S A 1992 (S S A).

2 FHFA D R: Pb Fd H L Bk Iv(RIN 2590-AA32, FHFA-OIG C Sbd A 5,

2011)

FHFA h vmh FHLBk m h. Am h h, h b hmb vm . S,h w hb vm “[]b m h vm ” b , , b vm , h hv “ h hh m [ N Rz S ROz (NRSRO)].” A, h w q FHLBk “h w h k vm h

b NRSRO.” T NRSRO “ z wh h S Exh Cmm.”

S 939A h D-Fk A q vm vw h b J 21, 2011, h hq m -wh , “mv qm … b h h -

wh h v h m

h These regulators include FHFA, the Ofce o the

Comptroller o the Currency, the Ofce o Thrit

Supervision, the Federal Reserve, FDIC, the National

Credit Union Administration, and the SEC. See Dodd-

Frank Act § 956(e)(1).





h .” FHFA-OIG mm h FHFA’ w w hv b b v wh w mh. I h mm, h k

m 939A h D-Fk A, h FHFAv h .

FHFA bh h M 20, 2011, wh mkv mm b FHFA-OIG.

3 Rvd Cv D/O Pc D (FHFA-OIG C Sbd My 10, 2011)

FHFA v Cvh D/OP D (h D) h w m h E Nvmb 2008. T D v hE h h m k h hb h h m bm FHFA v.FHFA-OIG vw h mm, b FHFA h h D. FHFA FHFA-OIG, h, hv m h h mm. D bw FHFA FHFA-OIG h , h b hmm h w b bh .

4 D F R: Pcc d Pcd AdvEc Pcd (RIN 2590-AA14, FHFA-OIG CSbd My 11, 2011)

P h mmm FHFA-OIG’ , FHFA

v v mv m b FHFA 1371-1379D h S S A.FHFA mm h v m . FHFA-OIGvw h mm v h v FHFA-OIG’ b h.

T S S A, m, hz FHFA b wh , xm, v v m h.FHFA m “vk, qh m” b .Cv, hh FHFA-OIG wh FHFA, v h b m h I G A.

FHFA-OIG mm h w b m h b h h S S A h I G A. S, FHFA-OIG w h FHFA -mk h FHFA-OIG’ wh FHFA b whh FHFA m wh





FHFA-OIG b. v , hb FHFA wh FHFA-OIG b,FHFA-OIG mm h h FHFA

vk, qh, m FHFA-OIG b.

FHFA bh h A 26, 2011, h h FHFA hz vk, qh, m b b FHFA-OIG.

5 D Pd R: Pd M d OSdd (RIN 2590-AA13, FHFA-OIG C Sbd J 10, 2011)

FHFA bh h mm F M, F M, h FHLBk.39 FHFA w FHFA-OIG h w mm h hh x. I h , FHFA-OIGkw v FHFA’ h bh . Hwv, FHFA-OIG bv h, mv, v, , FHFA h m h (.., , , bhmk) m h GSE hw m wh bFHFA-OIG vw v FHFA’ m .

Wh h mm , FHFA h J 20, 2011.

6 FHFA D Pd R: Fd H L Bk Cy S Rq (RIN 2590-AA38, FHFA-OIG CSbd A 29, 2011)

FHFA b m FHLBk mmb m wh h Cmm Rvm A wh -m hmb mFHFA h FHLBk hmv. FHFA-OIG mm h , b FHFA FHFA-OIG hv m h h mm. T b h mm h w b bh bq m .

FHFA-OiG COMMUNiCATiONS AND OUTreACH eFFOrTS

A k m FHFA-OIG’ m mm whC, h GSE , h b, h .





H

FHFA-OIG OI h FHFA-OIG Hotline, whh w m b, w, b FHFA h GSE. FHFA-OIG h b whbw . A w hw mb , FHFA-OIG m h H hh hFHFA-OIG wb, , -m FHFA GSE m, h Sm R.

Cd w O Ov Bd

FHFA-OIG h vh h m m whv h ( HUD; h Dm VA (VA); h Dm A (USDA); ’ O F Sb (whh m h b A R Pm)); h , w h w m z.

h m, FHFA-OIG h h xh b , m, x. D h m Smb30, 2011, v FHFA-OIG h wv v:

• CIGIE, which meets monthly, seeks to increase the professionalism v . T IG h P D v CIGIEv.

• e Dodd-Frank Act established the Council of Inspectors General F Ovh (CIGFO) h h m m b vh. T I G v mmb CIGFO h m. I , whh h h CIGFO mmb , FHFA-OIG h vm h CIGFO , whh

w bh J 25, 2011.

• FHFA-OIG spearheaded the creation of a new interagency working, h F H I G. I FHFA-OIG, h h O I G

h wh m b hm v, HUD, VA, USDA. T

w m wk v mb, w, b, m vv hm v. Fh, h F H IG mb h mxmm v hv m h m, v h vm’ v

The FHFA-OIG Hotline can be reached at

(800) 793-7724 or via e-mail at

[email protected].





v h Am hmb h m m mk. T F H I G hvb b m j v, m

v mm . I ,h F H I G Compendiumo Federal Housing Programs and Activities, whh w v qk h ’ -m mm v. I w b b h v m b h mqk – h h – hw h m wk. TF H I G m b b bq m .

• e Financial Fraud Enforcement Task Force (FFETF) is a broad

w m , , h . P Obm bh FFEF Nvmb2009 v m,

j v hm h wh hm, v vm, m h mk. FHFA-OIG v mmb FFEF h b wk wh FFEF mb mv FHFA-OIG’ m. FHFA-OIG v FFEF wk h, b bw, w bFHFA-OIG v h w m ’ kw v v FHFA-OIG’ m:

T FFEF MFWG mb m h . Mmb FFEF MFWG FHFA-OIG, DOJ, HUD-OIG, h FBI, h NA A G (NAAG).

T Rv A, Pm, G F WkG m , wh h x v b h Am Rv RvmA 2009. I h mm

wh m , / wh . Am FHFA-OIG’ h

wk DOJ, h Rv Ab B (RAB), NAAG.

FFEF’ S Cmm F Wk G wk m Am’ mk.FHFA-OIG h wk wh, mh, DOJ, h SEC, h Cmm F Cmm.





• FHFA-OIG has established partnerships with several federal agencies h , z m, . T h FBI, HUD-OIG, FCEN, h S Sv,

SIGARP. Eh FHFA-OIG’ h wh h h . Th h ’ mb vv, w, x, x h ,v, v vv hm h b h .

• FHFA-OIG also has carried out additional outreach and coordination w vm , DOJ, hO h Cm h C, h SEC, IRS-CI, U.S.A’ O hh h , mb .

• e FHFA Inspector General is vice chairman of the CIGIES Dbm Wk G (h Wk G).

T Wk G bmm h CIGIE IvCmm, m mv h v bm hh h vm:

O M 6, 2011, h FHFA I G Wk G m FHFA-OIG’ . T h m w mvh xv bm v h v xv bm .

T Wk G h k v b w w bm

vb m m m b . O h

w v bm wh h mm.

T Wk G’ h v’ – whhCIGIE h m – m h bm b m q,bk mh h , h k

hm m v. I h v,h Wk G bh h v’ h Journal o Public Inquiry, m CIGIEmz h mm.





• During the most recent reporting period, the Deputy InspectorG Iv v v FHFA-OIG’ hvm, vb ,

. T hv b m w w m z whh- b, :

h I MFWG

h A N F Av C C

h S Sv N M F C

HUD-OIG A C

h S C’ R E F C

h 2011 “R A F” C h b hI A F Cm Iv

Cc w C

h b k C vm vh FHFA h GSE, h I G m wh mmb C h . D h x-mh Smb 30, 2011, h I G v b FHFA-OIG’ , z, . C h I G’ w m C, h , m vb www.h.v.

Th Dputy inspcto Gnal o

instgatons, Chstoph Shaply, spaks

to th intnatonal Assocaton o Fnancal

Cms instgatos n Chalott, Noth

Caolna, on August 30, 2011.



section 4

FHFA-OIG RECOMMENDATIONS



64 | Section 4: FHFA-OIG Recommendations


Section 4: FHFA-OIG Recommendations

I wh h v h I G A, h k

FHFA-OIG v mm FHFA h mh , , v h A’ h v , w, b. T wb mmz FHFA-OIG’ m mm h h mm.



Section 4: FHFA-OIG Recommendations | 65


No. Recommendation Report Status

EVL-2011-006-1 FHFA should pomptly act on th spcfc sgnfcant concns asd by

FHFA sta and Fdd Mac ntnal audtos about ts loan pocss.

Evaluation o the Federal Housing

Finance Agency’s Oversight

o Freddie Mac’s Repurchase

Settlement with Bank o America

rcommndaton agd to

by FHFA; mplmntaton o

commndaton pndng.

EVL-2011-006-2 FHFA should ntat oms to nsu that sno manags a appsd o

and tmly act on sgnfcant concns bought to th attnton, patculaly

hn thy c pots that th nomal potng and supsoy

pocss s not okng poply.

Evaluation o Federal Housing

Finance Agency’s Oversight

o Freddie Mac’s Repurchase

Settlement with Bank o America

rcommndaton agd to


commndaton pndng.

EVL-2011-005-1 FHFA should assss: (1) th xtnt to hch xamnaton capacty shotalls

may ha adsly actd th xamnaton pogam and (2) potntal

statgs to mtgat sks, such as achng fcncs n th assgnmnt

o xamns o th xamnaton pocss.

Evaluation o Whether FHFA Has

Sufcient Capacity to Examine

the GSEs

rcommndaton agd to


commndaton pndng.

EVL-2011-005-2 FHFA should monto th dlopmnt and mplmntaton o th xamn

accdtaton pogam and tak ndd actons to addss any shotalls.



the GSEs

rcommndaton agd to


commndaton pndng.

EVL-2011-005-3 FHFA should consd usng dtals om oth dal agncs, td

annutants, o contactos to augmnt ts xamnaton pogam n th na-

to md-tm.



the GSEs

rcommndaton agd to


commndaton pndng.

EVL-2011-005-4 FHFA should pot podcally to Congss and th publc, hch mght

nclud th augmntaton o xstng pots, on th Agncy’s xamn

capacty shotalls, such as th numb o xamns ndd to mt ts

sponsblts; th pogss n addssng ths shotalls, ncludng status

o xamn cutmnt and tnton ots; and th dlopmnt and

mplmntaton o ts xamn accdtaton pogam.



the GSEs

rcommndaton agd to


commndaton pndng.

EVL-2011-004-1 FHFA should closly monto Fann Ma’s mplmntaton o ts opatonal

sk managmnt pogam.

Evaluation o FHFA’s Oversight

o Fannie Mae’s Management o

Operational Risk

rcommndaton agd to


commndaton pndng.

EVL-2011-004-2 FHFA should tak dcs and tmly actons to nsu th mplmntaton

o th pogam Fann Ma als to stablsh an accptabl and ct

opatonal sk pogam by th nd o th fst quat o 2012.



Operational Risk

rcommndaton agd to


commndaton pndng.

EVL-2011-004-3 FHFA should nsu that Fann Ma has qualfd psonnl to mplmnt

ts opatonal sk managmnt pogam.



Operational Risk

rcommndaton agd to


commndaton pndng.

EVL-2011-003-1 FHFA should ngag n ngotatons th Tasuy and th entpss

to amnd th FAAs, und hch th entpss admnst and noc

HAMP, by ncopoatng a spcfc dsput soluton pocss so that th

pats may dscuss dncs that as n ts admnstaton and stablsh

statgs by hch to sol o mtgat thm.

Evaluation o FHFA’s Role in

Negotiating Fannie Mae’s and

Freddie Mac’s Responsibilities in

Treasury’s MHA Program

rcommndaton agd to


commndaton pndng.

EVL-2011-002-1 To mpo tanspancy, FHFA should post on ts bst nomaton about

xcut compnsaton packags, th entpss’ copoat pomanc

goals and pomanc aganst thos goals, latd tnd data, and pod

lnks to th entpss’ scuts flngs.


Finance Agency’s Oversight o

Fannie Mae’s and Freddie Mac’s

Executive Compensation Programs

rcommndaton agd to


commndaton pndng.

EVL-2011-002-2 FHFA should stablsh ttn cta and pocdus o ng annualpomanc and assssmnt data. FHFA should conduct ndpndnt

tstng and fcaton, phaps on a andomzd bass, to gan assuanc

that th entpss’ bass o dlopng commndd nddual

xcut compnsaton lls s asonabl and justfd.

Evaluation o Federal Housing Finance Agency’s Oversight o



rcommndaton agd toby FHFA; mplmntaton o

commndaton pndng.

EVL-2011-002-3 FHFA should stablsh an ongong and analyss pocss to nclud

such ssus as th ll o dal suppot o th entpss and th

compnsaton lls o th sno xcuts o housng-latd dal

ntts that a podng ctcal suppot to th housng fnanc systm.





rcommndaton agd to


commndaton pndng.

Figure 8. Summary o FHFA-OIG Recommendations






EVL-2011-002-4 FHFA should cat and mplmnt polcs to nsu that all ky xcut

compnsaton documnts a stod consstntly and man adly

accssbl to appopat Agncy ofcals and sta.





rcommndaton agd to


commndaton pndng.

EVL-2011-001-1 FHFA should dlop an xtnal potng statgy, hch mght nclud th

augmntaton o xstng pots, to choncl FHFA’s pogss, ncludng th

adquacy o ts soucs and capacty to mt multpl sponsblts and

mtgat any shotalls.

Federal Housing Finance Agency’s

Exit Strategy and Planning Process

or the Enterprises’ Structural

Reorm

rcommndaton agd to


commndaton pndng.

EVL-2011-001-2 FHFA should stablsh tmams and mlstons, dscptons o

mthodologs to b usd, cta o aluatng th mplmntaton o th

ntats, and budgt and fnancng nomaton ncssay to cay out ts

sponsblts.

Federal Housing Finance Agency’s

Exit Strategy and Planning Process

or the Enterprises’ Structural

Reorm

rcommndaton agd to


commndaton pndng.

AUD-2011-004-1 FHFA should th ccumstancs suoundng ts not dntyng th

oclosu abuss at an al stag and dlop potntal nhancmnts

to ts capacty to dnty n and mgng sks.

FHFA’s Oversight o Fannie Mae’s

Deault-Related Legal Services

rcommndaton agd to


commndaton pndng.

AUD-2011-004-2 FHFA should dlop and mplmnt comphns xamnaton gudanc

and pocdus, togth th supsoy plans, o dault-latd lgal

scs.



rcommndaton agd to


commndaton pndng.

AUD-2011-004-3 FHFA should dlop and mplmnt polcs and pocdus to addss

poo pomanc by dault-latd lgal scs ndos that ha

contactual latonshps th both o th entpss.



rcommndaton agd to


commndaton pndng.

AUD-2011-003-1 FHFA should documnt, dssmnat, and mplmnt a pacy tanng plan

and mplmntaton appoach.

Cliton Gunderson LLP’s

Independent Audit o the Federal

Housing Finance Agency’s Privacy

Program and Implementation –

2011

rcommndaton agd to


commndaton pndng.

AUD-2011-003-2 FHFA should dnty thos mploys that ould bnft om

addtonal job-spcfc o ol-basd pacy tanng basd on ncasd

sponsblts latd to Pii.



Housing Finance Agency’s Privacy Program and Implementation –

2011

rcommndaton agd to


commndaton pndng.

AUD-2011-003-3 FHFA should dlop and mplmnt tagtd, ol-basd tanng o

mploys hos job unctons qu addtonal job-spcfc o ol-basd

pacy tanng.





2011

rcommndaton agd to


commndaton pndng.

AUD-2011-003-4 FHFA should dlop and mplmnt addtonal tanng o mploys

about SOrN qumnts, ocusng on th nadtnt caton o systms

o cods. Ths tanng should stss th lgal amfcatons potntally

assocatd th catng systms o cods po to publshng a SOrN.





2011

rcommndaton agd to


commndaton pndng.

AUD-2011-003-5 FHFA should stngthn ts pacy-latd pocdus to nsu SOrNs a

compltd po to systms bcomng opatonal.



Housing Finance Agency’s Privacy Program and Implementation –

2011

rcommndaton agd to


commndaton pndng.

AUD-2011-003-6 FHFA should qu systm ons o ou FHFA systms th Pii to

ppa pacy mpact assssmnts accodng to a chcklst o tmplat.





2011

rcommndaton agd to


commndaton pndng.






AUD-2011-003-7 FHFA should documnt th pacy mpact assssmnts conductd o

poposd uls o th Agncy as qud by Scton 522.





2011

rcommndaton agd to


commndaton pndng.

AUD-2011-003-8 FHFA should stablsh a pocss o th complton o tmplat- o

chcklst-basd pacy mpact assssmnts and mody polcs and

pocdus as ncssay.





2011

rcommndaton agd to


commndaton pndng.

AUD-2011-003-9 FHFA should nsu pacy sk s contnuously assssd on systms n

poducton, ncludng hn unctonalts chang o hn a majo updat

s don. Th CPO should documnt, dssmnat (to systm ons and th

Ch inomaton Scuty Ofc), and mplmnt polcs and pocdus

o contnuous montong o nomaton systms contanng Pii at thy

a placd n poducton. Th polcs and pocdus at a mnmum should:

• document the privacy-related security controls that are to be monitored

to potct nomaton n an dntfabl om and nomaton systms

om unauthozd accss, us, dsclosu, dsupton, modfcaton, o

dstucton;

• determine the frequency of the privacy-related security controls

montong and potng pocss to th pacy ofc;

• document review of reports generated by the monitoring of the privacy-

latd scuty contols; and

• if necessary, take action on results of monitoring and document results

o acton takn.





2011

rcommndaton agd to


commndaton pndng.

AUD-2011-002-1 FHFA should fnalz, dssmnat, and mplmnt an Agncy-d

nomaton scuty pogam plan n accodanc th NiST SP 800-53

r.3.



Housing Finance Agency’s

Inormation Security Program –

2011

rcommndaton agd to


commndaton pndng.

AUD-2011-002-2 FHFA should updat ts nomaton scuty polcs and pocdus toaddss all applcabl NiST SP 800-53 r.3 componnts. Cliton Gunderson LLP’s Independent Audit o the Federal



2011


commndaton pndng.

AUD-2011-002-3 FHFA should dlop, dssmnat, and mplmnt an Agncy-d

nomaton catgozaton polcy and mthodology.





2011

rcommndaton agd to


commndaton pndng.

AUD-2011-002-4 FHFA should dlop, dssmnat, and mplmnt a pocss to monto

complanc th POA&Ms.





2011

rcommndaton agd to


commndaton pndng.

AUD-2011-002-5 FHFA should stablsh contols o tackng, montong, and mdatngaknsss notd n ulnablty scans.

Cliton Gunderson LLP’s Independent Audit o the Federal



2011


commndaton pndng.






AUD-2011-001-1 FHFA should dsgn and mplmnt ttn polcs, pocdus, and

contols gonng th cpt, pocssng, and dsposton o consum

complants that:

• dene FHFA’s and the Enterprises’ roles and responsibilities regarding

consum complants;

• require the retention of supporting documentation for all processing and

dsposton actons;

• require a consolidated management reporting system, including standard

cod omats and data lmnts, and pocdus o catgozng and

potzng consum complants;

• ensure timely and accurate responses to complaints;

• facilitate the analysis of trends in consumer complaints received and use

th sultng analyss to mtgat aas o sk to th Agncy;

• safeguard PII; and

• ensure coordination with FHFA-OIG regarding allegations involving fraud,

ast, o abus.

Audit o the Federal Housing

Finance Agency’s Consumer

Complaints Process

rcommndaton agd to


commndaton pndng.

AUD-2011-001-2 FHFA should assss th sufcncy o allocatd soucs, nclus o

stafng, n lght o th addtonal contols mplmntd to stngthn thconsum complants pocss.


Finance Agency’s Consumer Complaints Process

rcommndaton agd to

by FHFA; mplmntaton ocommndaton pndng.

AUD-2011-001-3 FHFA should dtmn th a unsold consum complants

allgng aud to nsu that appopat acton s takn pomptly.


Finance Agency’s Consumer

Complaints Process

rcommndaton agd to


commndaton pndng.



AN OVERVIEW OF THE HOME FORECLOSURE PROCESS



72 | An Overview o the Home Foreclosure Process

Federal Housing Finance agency oFFice oF inspector generalFEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECOR GENERAL

An Overview of the Home ForeclosureProcess

Am h m m h h h b jm h m q oreclosures. Pb mk bv hv bq w hv v wh m bm.A m h m v hv b mj v v h w . B b h qmh hz x , FHFA-OIGk v x mk mmb h b.

M hm h h U S hh vb bk h . L, h h vh bw, q m h . Bw h h h v v m. T mm bw h h (m h h h ); h h h v h h hh h h . F vv h b wh bh h hmw/bw h ( v)hh h h .

B h , hwv, h vvw vw h m . I x ,h w , b h m . T w m m hmw wh m bvv , k , .

FUNDAMeNTALS OF THe MOrTGAGe

A m b , h bw’h m. Wh h m “m” q

bh h h , h w m: m.

T N

T h m m h hmw (m) h h h h m m, h h h m. M m b m h h. L, ,

Foreclosure:

Th lgal pocss usd by a lnd to

scu posssson o a motgagd popty.

i Although real estate investors may also fnance their

purchases o commercial properties, such as ofce

buildings and rental apartment complexes, through

mortgage debt, this discussion will center specifcally on

residential mortgages.



An Overview of the Home Foreclosure Process | 73


An Overview of the Home Foreclosure Process | 73


s s s rd rs, r drcy r r securitization

rcss wc rs rs r d r d sd s scry vsrs. T errss r s r rcs

rcss d s rs; y ccd r rxy 70% ’s sscs mBS 2010. Rr d drcy wrs,y rcs rs r r drs d r byrs. Tr scs brrwr s ry dr, wcy dr r r dr s sd.

Te Security Instrument

T scry sr s sr dc r r ds s s cr r ry . T scry sr s by vrs s, sc s “r,” “dd rs”(Dot), r “rs dd,” dd s r d s wc s s cd. i y ss, s ycy rcrdd cy rcrdr dds fcs rdr sbs r’s rs rry s r bc rcrd. Ts s r bcs sbss r’s rs rry rv r rs, cd

r rs. T jry rs r rcrdd s rvrcrd cy kw s mr ecrc Rsr Sys(meRS). W meRS s sd, s sd cy rry rcrds s r, w r r s rckd meRS’ rv rsry. T

vdy meRS’ vrs rcsss s b sbjc sc d- crvrsy.

Homeowner agrees

to pay bank

Bank provides funds

for home purchase

If no payment on note,

lender may take houseHOMEOWNER

(MORTGAGOR)LENDER

(MORTGAGEE)

NOTESECURITY

INTEREST

$

+

Securitization:

A process whereby a nancial institution

assembles pools o income-producingassets (such as loans) and then sells an

interest in the cash fows as securities to

investors. See page 20, Figure 1.

Figure 9. Mortgage




FEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECOR GENERALFEDERAL HOUSING FINANCE AGENCY OFFICE OF INSPECOR GENERAL

T m h m h . L k, m h lien. T hmw, m, h h

m. Av, DO m k h: hhmw, , v h h DO , whh bh h b. T DO m . T DO h wh h h h wh h . I h DO m, h hmw , hb h w b , , h . T DO m b . j

Note

D e e

d i n T

r u s t

HOMEOWNER

(TRUSTOR)

TRUSTEE

(HOLDS DEED TO HOUSE)

LENDER

(BENEFICIARY)

IOU

D E E D

T O H O U S E

I f t h e n o

t e i s n o t p a i d

b y t h

e h o m e o w

n e r

D E E D

T O H O U S E

$

Figure 10. Deed o Trust

Lien:

Th lnd’s ght to ha a spcfc pco th dbto’s popty sold th dbt

s not pad. wth spct to sdntal

motgags, th nothold tans a ln on

th hous (as dncd by th motgag o

dd o tust) untl th loan s pad.

j DOT trustees should not be conused with securitization

trustees. Many securitizations involve a trust that holds

legal title to the mortgages and notes. These trusts have

a trustee – a major fnancial institution – that acts as

an agent or the trust, carrying out unctions such as

remitting payments to investors in the securities issued

by the trust and reporting to investors on the perormance

o the trust’s mortgages. The actual management o

the mortgages, though, is carried out by another entity,

known as the servicer.



An Overview o the Home Foreclosure Process | 75




T Svc

A m “v,” m h m h hw m, h h mm . T v m b m h , m b h , whh bh h w h , kw “ v m” “ v m.” Ah mj m b h (mm h ’ “”), m hv v h wh h . F xm, h E v h h w hmv; , h h- v, h h h hm.

Sb m mm v, bw’ m b wh bv, v, b h . Bh v bv q mm h v’ b m h , wh hw h v m m hw .

DeFAULT

D h . Ahh v h b, h mk m q hm. M m q m h mh (hh hm m v h m h jb ), mv w m. F 11

h m . T m w h h m q, hbw’ v , h v h m b, h v’ m ( m hm’), h v b bw. T, m m b m, h m b b h m v

v .

G, v w mm m 90 q – h , h bw h m h vm. T, hmw vb bh m

mh w h wh h v mm .Hwv, m h v m b b m 90 . N mm, qm.

For more inormation on the servicer, see pages

26-27 o this report, Selected FHFA Programs

and Activities.



76 | An Overview of the Home Foreclosure Process

Federal Housing Finance agency oFFice oF inspector generalFederal Housing Finance agency oFFice oF inspector general

Homeowner/

Borrower/

Mortgagor

Scheduled Payments

Made on Time?No Action

YES

NO

Judicial

Foreclosure

Nonjudicial

Foreclosure

Notice of

Default

Mediation

if Required

Notice of

Default

Mediation

if Required

Notice of

Intent to

Foreclose

If Required

Proceed to Advertisement

of Sale and Sale

Vacate

Property/Eviction

Foreclosure

Filing

Trial

Deed in Lieu

of Foreclosure Short Sale

Default – Initiate Foreclosure

Process (usually after 90 days

or 3 delinquent payments)

Figure 11. Foreclosure Process Flowchart





L M

I m , h m b h . I , v m, v m x h m bw m h hm wh h mq. I m h m h v,b w m, h MHAm m , m m h h v.

Mediation. M q - m bwhmw v. I m v q m h wh . T m h hmw wh wk hvh m .

Modifcation. Cmm m x h m’m , - m h h m, mk bh m m . I m, wh , h m w w h bw’-mz mh m m m b v.

R h bw’ b mm.Ahh HAMP m ’ , hE v h mm HAMP. Hmw h b w h mh v b m b m m x .40

Forbearance. L m w x b ,m h h m m wh .Hmw hv h b, h v m vmmb v b h Svmmb Cv R A hv b wh h v 90 . N h m m, h h k - b h b m, mm b.

B m , m b vv m h mk m m. I h v, F M F M m m b x mh h m bw. Sv m

m bw h b b HAMP m. Bw wh h b mb v HAMP.

The websites o Fannie Mae ( www.anniemae.

com ) and Freddie Mac (www.reddiemac.com)

incorporate utilities that permit borrowers to

learn whether those organizations guarantee or

own specifc home loans.

Mediation:

Mdaton s a pocss by hch a

nutal thd paty (mdato) asssts th

homon and lnd n achng a a,

oluntay, ngotatd agmnt. Th

mdato dos not dcd ho s ght o

ong.

Figure 12, at the end o this overview, lists

those states that oer or require mediation as

part o the mortgage loan deault remediation

process.

A detailed listing o borrower eligibility criteria

or HAMP and other MHA assistance programs

is available at www.makinghomeaordable.gov

http://www.fanniemae.com/








Refnancing. Ah h wh w v . T m h w b whvh bw w ; h h w h b h . Wh h , h h .

T bw m h

w , wh m m h h m x . A vv h b w h x w m h x , wh m vv h m . B vv w , h wh , whm m m vv h bw.

, q h m h x .M m hv “ ” h q m h b h h h h . U h x m , h xm h h h h w

’. Pm v h q h hmw hv equity h , w m v x b h v h (bv 100% --v ).A, h b , , bw

wh underwater , v h h m. Hwv,h E w q w m h w h vm’ Hm Ab RPm (HARP). L h h bk’ b h v-b z b HARP.

Equity:

in th contxt o sdntal motgag

fnanc, quty s th dnc btn

th a makt alu o th boo’s

hom and th outstandng balanc on th

motgag (and any oth dbt scud by t,

such as hom quty loans).

Underwater:

Tm usd to dscb stuatons n hch

th homon’s quty s blo zo (..,

th hom s oth lss than th balanc o

th loan(s) t scus).

Common Misperceptions About Enterprise Policies or HAMP Participants

Publshd pots ndcat that mstakn o outdatd undstandngs may psst among patcpants (both scs and boos) n HAMP oloans ond o guaantd by th entpss. Th common mspcptons a dscussd blo:

• HAMP Participants Must Be Delinquent. HAMP dos not qu homons to b actually dlnqunt n th paymnts bo

patcpatng. Dspt potd cass o motgag scs ndcatng that homons must b dlnqunt, and n som cass actually

ncouagng thm to all bhnd n th paymnts, pogam gudanc and th entpss’ sc dcts xplctly pmt patcpaton

by homons ho man cunt, but o hom dault s “asonably osabl.”

• HAMP Requires a Very Long Trial Period. Th entpss’ publshd gudanc stats that th ntal tal pod o HAMP patcpants

“must b th months long o motgag loans alady n dault and ou months long o motgag loans h th sc has

dtmnd that dault s mmnnt but has not yt occud,” contay to potd nstancs o boos makng tal paymnts o

much long.

• The Foreclosure Process Can Proceed While Loss Mitigation Eorts Are Underway. As a sult o FHFA’s Scng Algnmnt

intat, cunt entps gudanc stats that scs may not commnc th oclosu pocss as long as thy a ngagd n

a good ath ot th th boo to sol th dlnquncy. “Dual tackng” a sngl loan o both oclosu and modfcaton spohbtd. Addtonally, bo a loan s d o oclosu, th sc must also pom a omal o th cas to nsu that

appopat altnats consdd.

On October 24, 2011, FHFA announced

revisions to HARP to expand the number o

eligible homeowners. FHFA-OIG will discuss

these revisions in greater detail in the next

Semiannual Report.





I , m w “h ” whh h v h h b, m v h mb, h . T m h h bv h

h w mk m m v h h w . FHA, xm, h- m: q bw wh hv FHA- , FHA

w w m 97.75% --v b h . T m h h x m w-w h b h . FHA qh h x h x b b 10% hh mb --v m h b m h 115%. Wh h m b vb w bw, wh w v bw wh m (whh bw wh h), v h wh v .

FOreCLOSUre AND iTS eFFeCTS

I m , h w . T w b . J hh h m, wh j k . T h v b w, whh v b m h , b h m h m . Sm m m . Sm m , wh hv h b h. S w v

h vv ( z ) b whh h m w h m m v m. T vvw h . A w m v m h b h, hvvw h b .

Jdc Fc

A j wh m. G,h v, h h’ bh, mm h b h hmw. I h b h v h h bh h m

h m h , h m k . Sm, m b v h v b bm h h h h m.

b , h h’ v vm wh h h m “m.” I m vh m h hmw, hm h h .A, m b junior lienholders, h

Junior Lienholder:

Th scuty ntst that can b aald

only at th sno ln s satsfd, s

calld a juno ln. Th hold o ths

scuty ntst s th juno lnhold.

Dpndng on th lat poty o th

juno ln, th juno lnhold may b th

scond motgag, thd motgag, tc.

Fo xampl, a bank holdng a hom quty

motgag on a hom s th juno lnhold

to th bank holdng th pmay motgag.





hm q . T qm v b , b w q h h h:

• the homeowner is indebted to the foreclosing party;• the homeowner has defaulted on the loan;

• the loan is secured by a mortgage, and the foreclosing party is or h m;

• service of process has been made on the homeowner.

T m v v – w w m bm h . F xm, h m h b bh v v b. S w q h vb w b wh hv kw h whh

h . Sh v z.

Robo-signing. in md-2010, ctan ladng motgag scs ound to b outnly submttng ad afdats to couts n oclosu cass.

Afdats a supposd to b son out by afants th psonal knoldg o th acts, hch a attstd to n th afdat, such as th act and

amount o th homon’s ndbtdnss and that th homon had daultd on th loan. in th cous o dpostons n oclosu cass,

scs ound to ha mploys hos sol job as to sgn oclosu afdats, as many as 10,000 afdats n a sngl month by som

mploys (oughly on p mnut). Ths mploys had no psonal knoldg o any o th acts to hch thy attstd.

As obo-sgnng bgan to gan mda attnton, sal majo scs mposd oluntay moatoa on th oclosu actts. All ha

subsquntly sumd oclosus, although som oclosu flngs ha bn thdan and submttd and, n Mayland, a stat judg th out

o 10,000 oclosus fld by Ally Fnancal inc. (omly knon as GMAC, LLC) bcaus o obo-sgnng. Fdal bankng gulatos commncdan nstgaton o obo-sgnng pactcs that sultd n consnt ods btn ladng scs and th dal gulatos, n hch th scs

agd to mpod ntnal contols. Stat attonys gnal a stll nstgatng obo-sgnng and latd ssus.

whl mda attnton as ocusd on th lack o psonal knoldg o th afants and th sh olum o sgnatus mad by nddual obo-

sgns, mo sous ssus luk n th obo-sgnng scandal. in patcula, th backdatng o motgag tans documnts as th ocus o th

dpostons n hch obo-sgnng as uncod. Th dat o th tans o a motgag s ctcal o th asons:

• Fst, t may act hth a sc has lgal standng to oclos; only th motgag has such standng. in Ibanez v. U.S. Bank , th

Massachustts Supm Judcal Cout uphld th sal o a oclosu n hch th sc could not po that th loan had bn

tansd to th scutzaton tust bo th oclosu as commncd.

• Scond, t may act hth th sc s a “hold-n-du-cous,” a spcal lgal status that pnts th homon om asng

ctan dnss (ncludng that th homon as audulntly nducd nto th motgag) and countclams. A paty that cs a

loan that s n dault cannot b a hold-n-du-cous, so dtmnng th dat o tans s ctcal to nsu that th homon s notongully dpd o hs o h lgal ghts to as dnss and countclams.

• Thd, o scutzd loans, tax and tust la uls dpnd on th dat o th tans. i th loan as tansd too lat, th may b

ads tax consquncs o th nstos n th motgag-backd scuts and th tans may tsl b od und tust la.

Thus, ssus latd to th tmng o tanss o motgags (otn d to as “chan o ttl”) ha poound lgal mplcatons.





G, w q h h m m hm. T m b q h “wk” “b k” . O w q h h m

h m, b b m (k ) b , h m m b . Sm q m m , h m, .

M j jm h hmw. I h , k mh xm h h ’ .

I hmw , h b h b bv m, h h k v . A hmw’ b

m whh h “h---” h . b h---, h m: (1) h ; (2) hv v v h k h; (3) hv h, h h . T m h h w h bq h , h h---, h hmw m b m h .

I h w jm h , h hh , b h h. S h m b qm vm h mmm m

. T hmw m, , h jm.





Njdc Fc

Nj h . T hw q. I, j , h m h hmw h h h. Smm h q m “ .” I q v h . Avm qm v b j, b h m b v w h mm w wk h . T m j h h h hh , v h v vh .

A j m v b m j h hmw b q h qv,

whh h h h ’

Show Me The Note. Foclosu dns ltgaton has bgun to atu aatons o th “sho-m-th-not” dns, n hch th homon

challngs th oclosng paty to po that t has th ght to oclos. in ts most basc om, ths dns s a dmand that th oclosng paty

poduc th ognal motgag not, but th tm s to a ang o challngs latng to th oclosng paty’s standng.

Ctcally, th sho-m-th-not dns dos not nol a clam that th homon s not n dault. instad, t ocuss on hth th oclosng

paty s th paty that s lgally nttld to oclos and has mad th qud dntay shongs. Dtmnng th pop paty s mpotant o

ssus o lgal standng, hold-n-du-cous status, and th homon’s ablty to as aous dnss and countclams, and bcaus t acts

sttlmnt ablts and ncnts. A potolo lnd, o xampl, may ha y dnt sttlmnt ablts and ncnts than a thd-paty

motgag sc.

Kemp v. Countrywide Home Loans, Inc ., 449 Bank. 624 (Bank. D.N.J. 2010) pods an llustaton o a succssul “sho-m-th-not” dns. in

Kemp , th homon had takn out a loan om Countyd Hom Loans, inc. Countyd subsquntly scutzd th loan, sllng t to a tust

namd CwABS Asst-Backd Ctfcats, Ss 2006-8. Th Bank o N Yok sd as tust o th tust and Countyd as sc o th

tust.

Th homon fld o bankuptcy, hang pously daultd on hs motgag. Countyd, as sc, fld a clam n th bankuptcy on bhalo th tust. Th homon challngd that clam basd on th act that th motgag not had not bn poply ndosd to th Bank o N Yok

as tust o th scutzaton tust and as n placd n th Bank o N Yok’s posssson. Accodngly, th homon agud, th tust as

not a paty nttld to noc th not, as only a physcal hold o th not, a non-hold n posssson, o somon ho has lost a not may noc

a not.

Dung th tal, Countyd poducd an “allong” — a spaat sht o pap to b afxd to a not to allo oom o addtonal ndosmnts.

Ths allong contand th ndosmnt that as mssng on th not tsl (albt th an o n th nam o th tust). Countyd’s ofcal

tnss, ho, tstfd that th allong had bn catd n antcpaton o th ltgaton. Th ofcal tnss uth tstfd that th ognal not

had n lt Countyd’s posssson and that th n allong had n actually bn afxd to th not — t as smply a pc o pap th

an ndosmnt, but no ndcaton o hat had bn ndosd.

Th bankuptcy cout dnd th clam Countyd had fld on bhal o th tust bcaus th tust could not sho that t as a paty nttld to

noc th not. Th tust as nth a hold o th not (an on o th not n physcal posssson o th not), no a non-hold (somon ho

lacks onshp o th not) n posssson o th not, no had t lost th not. Bcaus th Bank o N Yok, as tust, and Countyd, as ts

agnt, not nttld to noc th not, th bankuptcy clam aganst Kmp as dsallod.





h h. Cv, h wmm b bq j q , h q b h h .

T Fc S

T v h v b j. S b , b h w v h j . T m h b j q b , mmmb, qm, , m m. Sm

j, hwv, v h b h vm, h h, wh h .

w h m h

. T v hx h . T h h , , h , j h h . R w --m, --h , wh h h perect (b mk h m m ) hv v bq ( ) . T m x h , hwv.Nb, x q hv v h v . I m, h (m) hmw.

T h v b ( h ) h b h . P h m h ,

h b h m/hmw. A, h h b hv. Ahh h h x h , h h h , m hv b m .

T b h -, w h ’ b “ b,” m h h v w b m h h h . M h b h v “ b.” T mh h b h m w h h hb wh h. I h w, b m

h h w hk. A b b h m h b w, whh m h h- b m b

w hh h w h . B b, h b h , h , x , h bq.

I m h q h. T m v , bw h bw h ; v bk

Perection:Th lgal codng o dnc o a

cdto’s ln on a patcula tm o

popty.





; b m , m m.

C

U h m h , h hmw m h h . h q m h m b, h w hv accelerated h b. T m b w, b b, h m .

I h hmw bk, h m , bk w m hmw w h m b h m .

Dccy Jd

T m v h mb. I h , h h’ v ( j h)m k jm – jm h m m h b. A jm b, k b, w h h b. Tm h jm , m w hm b hb bk. A, h jm h- b b

m v. Am h b bj hv h F Db C P A w b w.

T vb jm v b . G, jm vb whj b h v mhb m jm. I m , jm vbm w j . I h, h m m m jm. Ev h, h v whh jm ( w) w

m h b j .

R Rd

I m , hmw hv - “h m.” T m h h hmw m – m – h h b h m h b . T h h m v b, m h 10 Nw J 2 . T x

Acceleration:

Th dclang o a dbt du and payabl

mmdatly. Lnds may possss ths

ght und ctan condtons, accodng

to th tms o th oblgaton o applcabl

la.

Figure 12, at the end o this overview,

summarizes provisions or right o redemption

by state.





h m h k , h h k b v h h (vhh h h ). Wh mm

hmw m wh h h m h hm , h h x m.

Evc

I h m hmw v h w h , h h hv hm hmw v. Ev w ; h v b w, b w m. B h b m hmw mh b h v, h w whhmw mb . T , hwv,

b .

R Lv Fcd Py

Smm b . R’ h vv h v b . S 2009, hwv, hH Fm Sv T Hm A h mmm h m m, mw b h E. I h h bona de h , h h m h h h m m h h v m b h h, whh h h 90

h. I h h mb w, h h h 90 h m m. Sm v h;h m v h h h .

Lby Ic, x, d Hw’ F

U h h, h hmw m b x, hmw’ , , h . Nh h v hvh h - h h hmw h m m. F-m vv h

h’ h h wh h -. F- b xv v , m v - wh h .

P-, h b h ’ w w. I m mm,hwv, hm kw “bk wkw” h whh v w mm , b m . Fq, bk

wkw wh h ’ v w h wh hx . I bk wkw , h hmw m h





w h , hh m h h w hv mv b h . B h hmw m h w h , h h m b x

k. T, h hmw b bj h h bm , h hmw b b h . Sm, h h’ v m mh h h h , b h w m. I h , h hmw mb x.

Ic Cd Sc

M , , , h hv v m m’ . A , , , h m m m’

v . A bk m m m’ 10 . T v v k w m’ , whh mk m xv m b h . C b m, v v h / mm .

FOreCLOSUre ALTerNATiveS

D v m, v m x h x b b hmw.Hwv, k , h w h hmw’

h h h. T v m h , , bk. T E h vm ’HAFA m, whh v h b hm m . P HAFA vm k jm m v v $3,000 b hmw wh h .

S S

L m “h ,” whh h hmw v h h, h xh h

, v hh h hb. A h h h hmw’ b; m h , h hmw m b b h . I h v h , m b m xb m h hmw, h m h h- m.

T b h . Sv q w h b h h h b w

More inormation on HAFA is available at www.

makinghomeaordable.gov/programs/exit-

graceully/Pages/haa.aspx.





h h b m hv wh h hmw. I , hhh h h m hhm b mm

m h h .

Dd L Fc

L w mm . T m hh hmw w h v,h h q h hh h .F h , h m x h . F h hmw, m b v b hm whh h hmw h m b — h m b w v h hmw wh m m mb mv .

C, xh j , h wq h wh j h. T, h hhmw h wh h k h h jh(), h m h . A, m b wh h j .

Bkcy

A hmw m bk b, , h . Bk j . A bk

m h . I wh wh bk hmw, h m m m h bk .

I h hmw Ch 7 bk h , hhmw w b b h h bk bh ’ . I h hmw Ch 13 bk h , h hmw m - h h m b mk m m h h h m h. T hmw m , b h ’ , m h m h m bk h -m .F m-m , h hmw m b b h

m bk.





State Foreclosure Process41 Right o Redemption42 Mediation

Programs

Alabama Pmaly nonjudcal 1 ya Non

Alaska Pmaly nonjudcal No Non

Arizona Pmaly nonjudcal No Non

Arkansas Pmaly nonjudcal No Non

Caliornia Pmaly nonjudcal 2 yas cout gants dfcncy

judgmnt

Ys43

Colorado Pmaly nonjudcal rdmpton by lnholds allod

only thn spcfd pods

Ys44

Connecticut Pmaly judcal Ys, at judgmnt and bo sal Ys45

Delaware Pmaly judcal No Ys46

District o Columbia Pmaly nonjudcal in optonal judcal pocdu th

s a poson o dmpton bo judgmnt

Ys47

Florida Pma ly judca l Ys, up to dat clk fls c tfcat

o sal

Ys48

Georgia Pmaly nonjudcal No Non

Hawaii Pmaly nonjudcal No Ys49

Idaho Pmaly nonjudcal No Non

Illinois Pma ly judca l Ys, la t o 7 months at sc

o complant o 3 months at

judgmnt

Ys50

Indiana Pmaly judcal No Ys51

Iowa Pmaly judcal 1 ya Non

Kansas Pmaly judcal 3 to 12 months dpndng onpcntag o dbt that has bn

pad

Non

Kentucky Pmaly judcal 1 ya Ys52

Louisiana Pmaly judcal No Non

Maine Pmaly judcal Motgags at 10/1/75, 90 days.

Motgags po to 10/1/75, 1 ya

Ys53

Maryland Pmaly nonjudcal No Ys54

Massachusetts Pmaly nonjudcal No Ys55

Michigan Pma ly nonjudcal 1 month to 1 ya dpndng

on sz o pacl, numb o

unts, pcntag o ognal loan

outstandng, and hth popty

s abandond

Ys56

Minnesota Pma ly nonjudcal 6 o 12 months dpndng on dat

o motgag, sz o popty, and

hth us s agcultual

Ys57

Mississippi Pmaly nonjudcal No Non

Missouri Pmaly nonjudcal 1 ya Non

Montana Pma ly nonjudcal Gnal ly 1 ya; o smal l tacts no Non

Nebraska Pmaly nonjudcal No Non

Figure 12. Summary o Foreclosure Process by State

For urther inormation on homeowner

assistance programs, borrowers should visit

www.makinghomeaordable.gov or call 888-

995-HOPE.

http://www.makinghomeaffordable.gov/

http://www.makinghomeaffordable.gov/





State Foreclosure Process41 Right o Redemption42 MediationPrograms

Nevada Pmaly nonjudcal No Ys58

New Hampshire Pmaly nonjudcal No Ys59

New Jersey Pmaly judcal 6 months Ys60

New Mexico Pmaly nonjudcal 9 months Ys61

New York Pmaly judcal No Ys62

North Carolina Pmaly nonjudcal 10 days Non

North Dakota Pmaly judcal 60 days o 1 ya o agcultual

land

Non

Ohio Pmaly judcal Bo confmaton o sal th

th amount o judgmnt and

assocatd costs pad

Ys63

Oklahoma Pmaly nonjudcal Up to confmaton o sal Non

Oregon Pmaly nonjudcal No Ys64

Pennsylvania Pmaly judcal No Ys65

Puerto Rico Pmaly judcal No Non

Rhode Island Pmaly nonjudcal No, xcpt oclosu by pocss

o la o by opn nty thn 3

yas

Ys66

South Carolina Pmaly judcal No dmpton at sal.

rdmpton possbl o 5 days

at sh taks posssson

Non

South Dakota Pmaly nonjudcal 1 ya Non

Tennessee Pmaly nonjudcal Gnally no, could b 2 yas but

ght to dmpton s outnly

ad

Non

Texas Pmaly nonjudcal No Non

Utah Pmaly nonjudcal 6 months o judcal oclosu Non

Vermont P maly judcal in judcal st ct oclosu th

no sal, 6 months. in judcal

oclosu th sal may dm

untl sal

Ys67

Virginia Pmaly nonjudcal No Non

Washington Pmaly nonjudcal 8 months Ys68

West Virginia Pmaly nonjudcal No Non

Wisconsin Pmaly judcal Up to tm o sal; 12 months at

judgmnt unlss cdto as

ght, ad 6 months

Ys69

Wyoming Pmaly nonjudcal 3 months Non



appendices



92 | Appendix A: Glossary and Acronyms


Appendix A: Glossary and Acronyms

GLOSSArY OF TerMS Acceleration: T b b mm. Lm h h , h m hb b w.

American Recovery and Reinvestment Act o 2009: E 2009, h hz m jb mvm m .

Bankruptcy: A wh b bm v b; , h h 11 h U.S. C (h Bk C).

Capitalization: I h x bk v, z h bk h b x . I hh’ q, v, . Bk z h v bk h bk m. I m , qm q bk z.

Collateral: A h b z b h h bw h .

Conservatorship: Cvh h mm

m whh h ’v m b h v . U h H Em Rv A 2008, FHFA h E vh. A v, FHFA hk v v h h E hm . FHFA h m h w h b , , hh; hwv, h -- h m wh h E’ x mm.

Conventional Conorming Mortgage Loans: Cv m m h b h F HAm, h Dm V A, h Dm

A h m h E’ w .Cm m hv b bw hh, b w bh b FHFA, kw h “m m.” F2011, h m m $417,000 m h U S, hh mxmm $625,500 hh .



Appendix A: Glossary and Acronyms | 93


Credit Rating Agency: C v h hwh bw h b.

Wh h S Exh Cmm z 10

N Rz S R Oz, 3 (S&P,M’, Fh) h m m.

Debarment: Dq m v m whh vm vm -m m. T bm v m .

Deed in Lieu: A whh m v xh m b h m.

Deault: D m wh h m b.

Dodd-Frank Wall Street Reorm and Consumer Protection Act o 2010(Dodd-Frank Act): L h m h b h U S b mv b h m, “ b ,” h Am xb b, m m bv v.

Emergency Economic Stabilization Act (EESA): A 2008 hhz k m v b v h m h m. I v v hmwh.

Equity: I h x m , q h bw h mk v h bw’ hm h b h m ( h b b , h hmq ).

Fair Debt Collection Practices Act: L h hb v,, bv b h- , b h A mb h m m m b. Fh m , xm wh h h w b.

Federal Home Loan Banks (FHLBanks): T FHLBk 12

v bk h U.S. h m vm h mm. C b C, hFHLBk hv b h mm h . T FHLBk v h bk, b v bw.





Federal Home Loan Mortgage Corporation (Freddie Mac): A h h h m, z hm, hm v; h v wh h b

mk hmb.

Federal Housing Administration (FHA): P HUD, FHA vm m b v hh hU S m m . I h m h w, v 34 m 1934.

Federal Housing Enterprises Financial Saety and Soundness Act o 1992(Saety and Soundness Act): L h mz h vh F M F M. I OFHEO w wh HUD wh h b “ h F

M F M q z .” TS S A bh k-b mmm h E bh HUD-m h b h, h , h . OFHEO w m b HERA.

Federal National Mortgage Association (Fannie Mae): A h h h m v hm v; b h m, F M h m mk hmb.

Foreclosure: T b

m .Golden Parachute: A m b mm, h h, b, k , v v w m, bw m xv h m q v v .

Government National Mortgage Association (Ginnie Mae): Avm-w wh HUD. G M v h m m v MBS bk b vm m.

Government-Sponsored Enterprises (GSEs): B zh b h vm h F M,F M, h FHLBk.

Guarantee: A v h h w b h k h , hb h m m w v.





Housing and Economic Recovery Act (HERA): HERA, 2008,bh FHFA-OIG FHFA, whh v h GSE’ .HERA x ’ h v h

GSE.

Implied Guarantee: T m, v h mk, hh vm w v GSE b b.

Inspector General Act: E 1978, h hz bhm , “ bjv ” wh , h: (1) v v h m h ; (2) vh mm v m m, , v h m m, v , w, b h

m ; (3) v m k h h h C m b bm h m h m h v .

Inspector General Reorm Act: E 2008, h m hI G A h h C h I G I E.

Joint and Several Liability: T j v b vh h b b h b h . Ih h FHLBk, v FHLBk w b

, h h 11 w b q v h b. Junior Lienholder: T h b v h , j . T h h h j h. D h v h j ,h j h m b h m, h m, . Fxm, bk h hm q m hm h jh h bk h h m m.

Lien: T ’ h hv h b’ h b . Wh m, h h h h ( v b h m ) h .

Mediation: M b whh h (m) h hmw h , v, m. T m wh h w.

Mortgage-Backed Securities (MBS): MBS b h h h fw – m –m m , m mm .





Operational Risk: Ex m q , , m, m x v ( v).

Perection: T v ’ m .

Personally Identifable Inormation (PII): Im h b v, h m, bh, mb, .

Preerred Stock: A h x v v hh m h h mm k, b h v h ’ b.

Primary Mortgage Market: T mk w m.

Private-Label Mortgage-Backed Securities (Private-label MBS): MBSv m m mb b h h GSE vm , h v- m. T x m vm , h v-b MBS v b h k vm.

Real Estate Owned (REO): F hm w b vm , h h E v. REO hm z m. T v v h m h w.

Secondary Mortgage Market: T mk b xm; h b h m wh m MBS . Bhh m m mk v-h- mk– h xh. Rh, bh hh wk.

Securitization: A whb mb m- (h ) h h hfw v.

Senior Lienholder: T h h v h , . T h h h h m. F xm, h bk h h m hm h h.





Senior Preerred Stock Purchase Agreements (PSPAs): E hm h vh w , h PSPA hz h E q b m , k vm

h E. U h PSPA, h E v b v, k v m, h vh, , w xv m.

Servicer: Sv m bw m bw w h , h h E MBS v. T h hmw’ m m, m hm h w h ,m , q bh h w h . F h v, h v h b h m h v.

T h m mh v’ h

, m, h , , h m b mh m m.

Short Refnancing: A b FHA hmw wh w m h m h h hm wh.

Short Sale: T m h wh w h m.

Suspension: T m q m v m wh h vm vm m, h m v, m, b

q v h m m v. A m h v mm x m h xv bh m -mm. S q bm.

Underwater: m b whh h hmw’q bw z (.., h hm wh h h b h() ).

Underwriter: I h x h mk, w h h w b m h hm v. I h mk , w hv b m b hb , m whh h S A 1933.





reFereNCeS

Dm H Ub Dvm, Glossary ( h://.h.v/h/HUD?=/m_/h/h/b/ ) ( S. 22, 2011).

Am Rv Rvm A 2009 (ARRA), Pb. L. N.111-5.

U S C, Glossary ( www..v/FC/Bk/BkB/G.x) ( S. 22, 2011).

F Rv Bk S F,What is bank capital and what are the levels or tiers o capital? (Smb 2001) ( www.b.//v//2001/0109.hm).

Gvm Ab O, Te Cooperative Model as a Potential Component o Structural Reorm Options or Fannie Mae and Freddie Mac (Nv. 15, 2010) (GAO/11-33R) ( www..v/w.m/1133. ).

FHLB D, Glossary o Common erms ( www.hb.m/G.hm #C) ( S. 22, 2011).

F H F A, Oce o Conservatorship Operations ( www.h.v/D.x ?P=344) ( S. 22, 2011).

F H F A, FHFA Announces Suspension o Capital Classications During Conservatorship and Discloses Minimum and Risk-

Based Capital Classications as Undercapitalized or the Second Quarter 2008 or Fannie Mae and Freddie Mac (O. 9, 2008) ( www.h.v/ wb/775/FHFA_S.PDF ).

F H F A, Conorming Loan Limit ( www.h.v/D.x?P=185) ( S. 22, 2011).

C R A Rm A, Pb. L. N. 109-291, § 3 (2006).

Dm , Suspension and Debarment- Frequently Asked Questions ( www..v//m60/F_A_Mm_Hm/q_k_q.hm #q2) ( S.22, 2011).

Dm H Ub Dvm, Deed-in-Lieu Frequently Asked Questions ( h://.h.v/h/HUD?=/m_/h/h//q ) ( S. 22, 2011).

O h S I G h b A R Pm, SIGARP: Initial Report to the Congress, 29, 111, 114 (Fb. 6,2009) ( www..v///2009/SIGARP_I_R__h_C. ).

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/buying/glossary



http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx


http://www.frbsf.org/education/activities/drecon/2001/0109.html


http://www.gao.gov/new.items/d1133r.pdf


http://www.fhlb.com/Glossary.html#C


http://www.fhfa.gov/Default.aspx?Page=344

http://www.fhfa.gov/webfiles/775/FHFA_Suspension.PDF




http://www.dot.gov/ost/m60/Financial_Assistance_Management_Home/frequently_asked_questions.htm#q2


http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqdil


http://www.sigtarp.gov/reports/congress/2009/SIGTARP_Initial_Report_to_the_Congress.pdf




























D-Fk W S Rm Cm P A 2010(D-Fk A), Pb. L. N. 111-203.

Em Em Sbz A 2008 (EESA), Pb. L. N. 110-343.

F Cmm, Annual Report 2009: Fair Debt CollectionPractices Act ( www..v//2009/02/P094804. )( S. 22, 2011).

T F Hm L Bk, Te Federal Home Loan Banks ( www.hbk.m///b/FHLBkWhP. )( S. 22, 2011).

F M, About Freddie Mac ( www.m.m//b_.hm) ( S. 22, 2011).

Dm H Ub Dvm,Te Federal Housing Administration (FHA) ( h://.h.v/h/HUD?=/m_/h/hh ) ( S. 22, 2011).

Gvm Ab O, Oce o Federal Housing Enterprise Oversight Disposition o Collections rom Tird Party Litigants (D. 22, 2004)(B-302825) ( www..v///302825.hm).

O h S I G h b A R Pm, Despite Evolving Rules On Executive Compensation, SIGARP Survey Provides Insights on Compliance (A. 19, 2009) (SIGARP-09-003)

( www..v///2009/D%20Evv%20R%20%20Ex%20Cm..._8_19_09. ).

G M, Ginnie Mae Frequently Asked Questions ( www.m.v/m/FAQ.?S=M) ( S. 22,2011).

G M, About Ginnie Mae ( www.m.v/b/b.?S=Ab) ( S. 22, 2011).

W. S Fm & Lw J. Wh, Regulating Housing GSEs: Toughtson Institutional Structure and Authorities, F Rv Bk A:Em Rvw, 87 (Q2 2004) ( www.b./

/04_mwh. ) ( S. 22, 2011).

F M, Glossary o Finance and Economic erms ( www.m.m/mm/_m.hm) ( S. 22, 2011).

Gvm Ab O, Management Report: Opportunities or Improvements in FHFA’s Internal Controls and Accounting Procedures ( J 3,2010) (GAO/10-587R) ( www..v//GAO-10-587R).

http://www.ftc.gov/os/2009/02/P094804fdcpareport.pdf

http://www.fhlbanks.com/assets/pdfs/sidebar/FHLBanksWhitePaper.pdf

http://www.freddiemac.com/corporate/about_freddie.html


http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory


http://www.gao.gov/decisions/appro/302825.htm

http://www.sigtarp.gov/reports/audit/2009/Despite%20Evolving%20Rules%20on%20Exec%20Comp..._8_19_09.pdf


http://www.ginniemae.gov/media/ginnieFAQ.asp?Section=Media


http://www.ginniemae.gov/about/about.asp?Section=About


http://www.frbatlanta.org/filelegacydocs/er04_framewhite.pdf


http://www.freddiemac.com/smm/g_m.htm


http://www.gao.gov/products/GAO-10-587R

http://www.gao.gov/products/GAO-10-587R











http://www.gao.gov/decisions/appro/302825.htm





http://www.fhlbanks.com/assets/pdfs/sidebar/FHLBanksWhitePaper.pdf

http://www.ftc.gov/os/2009/02/P094804fdcpareport.pdf





C B O, W m D Hz-Ek, D CBO, Regulation o the Housing Government-Sponsored Enterprises (O. 23, 2003) ( www.b.v/.

m?x=4642&=0).

I G A 1978, Pb. L. N. 95-452.

I G Rm A 2008, Pb. L. N. 110-409.

Az S L, Fitieth Legislature – First Regular Session ( www.z.v/FmDm.?D=//44/00141.hm&=44&D=ARS) ( S. 22, 2011).

Chh B. MLh, Te Property ax Lien, Uv NhC Sh Gvm, . 150 (O. 2009) ( www.b../v//b150. ).

S C J Bh, Foreclosure Mediation Program:Homeowner Frequently Asked Questions ( www.j..v//hmw_q.hm #2) ( O. 19, 2011).

S Exh Cmm, Mortgage-Backed Securities ( www..v/w/m.hm ) ( S. 22, 2011).

F M, Glossary o Finance and Economic erms ( www.m.m/mm/_.hm #O) ( S. 29, 2011).

F H F A, 2010-2011 Enterprise Housing Goals; Enterprise Book-entry Procedures (RIN-2590-AA26) ( www.h.

v/wb/16603/FRAHG9210. ) ( S. 22,2011).

O Mm B, M-10-23 Memorandum or the Heads o Executive Departments and Agencies, Guidance or Agency Use o Tird-PartyWebsites and Applications ( J 25, 2010) ( www.whh.v////mb//mm_2010/m10-23. ).

O F H E Ovh, Mortgage Markets and the Enterprises in 2006 ( J 2007) ( www.h.v/wb/682/MMk2006. ).

O h S I G h b A R Pm, Quarterly Report to Congress, 150 (O. 26, 2010) ( www..v///2010/Ob2010_Q_R__C. ).

http://www.cbo.gov/doc.cfm?index=4642&type=0


http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/44/00141.htm&Title=44&DocType=ARS


http://www.sogpubs.unc.edu/electronicversions/pdfs/ptb150.pdf


http://www.jud.ct.gov/foreclosure/homeowner_qs.htm#2


http://www.sec.gov/answers/mortgagesecurities.htm

http://www.freddiemac.com/smm/n_r.htm#O


http://www.fhfa.gov/webfiles/16603/FinalRuleAffHsgGoals9210.pdf


http://www.whitehouse.gov/sites/default/files/omb/assets/memoranda_2010/m10-23.pdf


http://www.fhfa.gov/webfiles/682/MortgageMarkets2006.pdf


http://www.sigtarp.gov/reports/congress/2010/October2010_Quarterly_Report_to_Congress.pdf












http://www.sec.gov/answers/mortgagesecurities.htm













F M, Single-Family Credit Guarantee Business ( www.m.m//m_/_b/x.hm)( S. 22, 2011).

F H F A, Senior Preerred Stock Purchase Agreement ( www.h.v/D.x ?P=364) ( S. 22, 2011).

L m Dv H. Sv, A S H, Dm H Ub Dvm, A Av M (A.6, 2010) ( www.h.v//m/h//m//10-23m.).

F M, Glossary o Finance and Economic erms ( www.m.m/mm/_z.hm #S) ( S. 29, 2011).

U S Dm J, FY 2009 Congressional Budget ax

Division, 16 ( www.j.v/jm/2009j// 09-x.) ( S. 29, 2011).

O h S I G h b A R Pm, SIGARP: Quarterly Report to Congress, 65 (J. 26, 2011)( www..v///2011/J2011_Q_R__C. ).

I Rv Sv, Module A-Introduction to ax-Exempt Bonds(4232-002) ( www..v/b/-/h1m.) (S. 22, 2011).

http://www.freddiemac.com/corporate/company_profile/our_business/index.html



http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf


http://www.freddiemac.com/smm/s_z.htm#S


http://www.justice.gov/jmd/2009justification/pdf/fy09-tax.pdf

http://www.sigtarp.gov/reports/congress/2011/January2011_Quarterly_Report_to_Congress.pdf


http://www.irs.gov/pub/irs-tege/ph1moda.pdf

http://www.irs.gov/pub/irs-tege/ph1moda.pdf



http://www.justice.gov/jmd/2009justification/pdf/fy09-tax.pdf












Agency- F H

F A

Blue Book- Q S I Ev

CIGFO- C IG F Ovh

CIGIE- C hI G I E

CPO- Ch Pv O

Delegations- CvhD/O P D

Dodd-Frank Act- D-Fk W S Rm Cm P A 2010

DOJ- U S Dm J

DOT- D

EESA- Em EmSbz A

Enterprises- F M F M

EO- Exv O

FAAs- F A Am

Fannie Mae- F N

M A

FBI- F B Iv

FDIC- F DI C

FDIC-OIG- F D

I C O I G

FFETF- F FEm k F

FHA- F HAm

FHFA- F H FA

FHFA-OIG- F H

F A O I G

FHFB- F H FB

FHLBank System- FHm L Bk Sm

FHLBanks- F Hm LBk

FinCEN- F Cm

Em Nwk

FISMA- F ImSm Mm A 2002

Fitch- Fh R

Freddie Mac- F HmL M C

GAO- U SGvm Ab O

Ginnie Mae- GvmN M A

Gramm-Leach-Bliley - FSv Mz A 1999

ACrONYMS AND ABBreviATiONS





GSEs- Gvm-S

E

HAFA- Hm AbF Av

HAMP- Hm AbM Pm

HARP- Hm AbR Pm

HERA- H EmRv A 2008

HOPE- Hm OwP Em, I.

HUD- U S Dm H UbDvm

HUD-OIG- U SDm H Ub Dvm O I G

IRS-CI- I RvSv-Cm Iv

MBS- M-BkS

MERS- M ER Sm

MFWG- M F Wk G

MHA- Mk HmAb Pm

Moody’s- M’ IvSv

NAAG- N A A G

NIST- N I

S h

NRSRO- N RzS R Oz

OA- O A

OAd- O Am

OC- O C

Ocala- O F LLC

OE- O Ev

OFHEO- O FH E Ovh

OI- O Iv

OMB- O Mm B

OPOR- O P,Ovh, Rvw

PII- P Ib

Im

POA&Ms- P A M

PSPAs- S P Sk Ph Am

QRMs- Q RM

RAN- R A Nwk

RATB- Rv Ab B

ReCorp- R FC

REO- R E Ow





RFI- Rq Im

S&P- S & P’ R

SvSaety and Soundness Act- FH E FS S A 1992

SEC- S ExhCmm

SIGTARP- O h SI G h bA R Pm

SORN- Sm R N TBW- , B & WhkM C

Treasury- U SDm h

UBS- UBS Am, I.

USDA- U S Dm A

VA- U S Dm V A

Working Group- C hI G I E S Dbm Wk G

Yellow Book- GvmA S



Appendix B: Inormation Required by the Inspector General Act | 105


Appendix B: Information Required by theInspector General Act

S 5() h I G A v h FHFA-OIG h, h A 30 Ob 31 h , m mmz v h mm x-mh Mh 31 Smb 30. Fh, S5() m h z m h FHFA-OIG m m . T , m hh, “ mm h … b h mmm h whh mm h b” (S 5()(10)), “ x h v mm m h ”(S 5()(11)).

Bw, FHFA-OIG b h h h h wh h m q b h I G A m b .

Source/Requirement Pages

Scton 5(a)(1)- A dscpton o sgnfcant poblms, abuss, and dfcncs latng to

th admnstaton o pogams and opatons o FHFA.

5-8

36-48

Scton 5(a)(2)- A dscpton o th commndatons o coct acton mad by FHFA-

OiG th spct to sgnfcant poblms, abuss, o dfcncs.36-48

Scton 5(a)(3)- An dntfcaton o ach sgnfcant commndaton dscbd n pous

smannual pots on hch coct acton has not bn compltd.65-66

Scton 5(a)(4)- A summay o matts d to poscut authots and th

poscutons and conctons that ha sultd.49-53

Scton 5(a)(5)- A summay o ach pot mad to th Dcto o FHFA. 36-48

Scton 5(a)(6)- A lstng, subddd accodng to subjct matt, o ach audt and

aluaton pot ssud by FHFA-OiG dung th potng pod and o ach pot , h

applcabl, th total dolla alu o qustond costs (ncludng a spaat catgoy o th

dolla alu o unsuppotd costs) and th dolla alu o commndatons that unds b

put to btt us.

36-48

Scton 5(a)(7)- A summay o ach patculaly sgnfcant pot. 36-48

Scton 5(a)(8)- Statstcal tabls shong th total numb o audt and aluaton pots

and th total dolla alu o qustond and unsuppotd costs.106

Scton 5(a)(9)- Statstcal tabls shong th total numb o audt and aluaton pots

and th dolla alu o commndatons that unds b put to btt us by managmnt.107

Scton 5(a)(10)- A summay o ach audt and aluaton pot ssud bo th

commncmnt o th potng pod o hch no managmnt dcson has bn mad

by th nd o th potng pod.

107

Scton 5(a)(11)- A dscpton and xplanaton o th asons o any sgnfcant sd

managmnt dcson mad dung th potng pod.107



106 | Appendix B: Inormation Required by the Inspector General Act


Source/Requirement Pages

Scton 5(a)(12)- inomaton concnng any sgnfcant managmnt dcson th hch

th inspcto Gnal s n dsagmnt.107

Scton 5(a)(13)- Th nomaton dscbd und scton 05(b) o th Fdal Fnancal

Managmnt impomnt Act o 1996.107-108

T h bw h FHFA-OIG’ m whS 5()(8), (9), (10), (11), (12), (13) h I G A.

AUDiT AND evALUATiON rePOrTS wiTH QUeSTiONeD AND

UNSUPPOrTeD COSTS

D h m , FHFA-OIG h h :

• Evaluation of the Federal Housing Finance Agency’s Oversight F M’ Rh Sm wh Bk Am(EVL-2011-006, Smb 27, 2011)

• Evaluation of Whether FHFA Has Sucient Capacity to Examineh GSE (EVL-2011-005, Smb 23, 2011)

• Evaluation of FHFA’s Oversight of Fannie Mae’s Management of O Rk (EVL-2011-004, Smb 23, 2011)

• Evaluation of FHFA’s Role in Negotiating Fannie Mae’s and FreddieM’ Rb ’ Mk Hm AbPm (EVL-2011-003, A 12, 2011)

• FHFA’s Oversight of Fannie Mae’s Default-Related Legal Services(AUD-2011-004, Smb 30, 2011)

• Clifton Gunderson LLP’s Independent Audit of the Federal HousingF A’ Pv Pm Imm – 2011(AUD-2011-003, Smb 30, 2011)

• Clifton Gunderson LLP’s Independent Audit of the Federal HousingF A’ Im S Pm – 2011 (AUD-2011-002, Smb 29, 2011)

• Audit of the Federal Housing Finance Agency’s Consumer Complaints

P (AUD-2011-001, J 21, 2011) T v h A’ m wh qm. T v q .



Appendix B: Inormation Required by the Inspector General Act | 107


AUDiT AND evALUATiON rePOrTS wiTH reCOMMeNDATiONS THAT

FUNDS Be PUT TO BeTTer USe BY MANAGeMeNT

FHFA-OIG’ v bv mm wh v b b b mm.

AUDiT AND evALUATiON rePOrTS wiTH NO MANAGeMeNT DeCiSiON

S 5()(10) h I G A, m, q hFHFA-OIG h v b hmmm h whh mm h b m b h h . T w v b h b h h w mm .

SiGNiFiCANTLY reviSeD MANAGeMeNT DeCiSiONS

S 5()(11) h I G A, m, q hFHFA-OIG m h v mm m h . Dh x-mh Smb 30, 2011, h w v mm FHFA-OIG’ v.

SiGNiFiCANT MANAGeMeNT DeCiSiON wiTH wHiCH THe iNSPeCTOr

GeNerAL DiSAGreeSS 5()(12) h I G A, m, q hFHFA-OIG m mm wh whh h I G m. D h , h w mm wh whh hI G .

FeDerAL FiNANCiAL MANAGeMeNT iMPrOveMeNT ACT OF 1996

T v HERA q FHFA mm m mm m h m b wh mm m qm, b ,

h U.S. Gvm S G L h v.

F 2010, FHFA v m GAO q () m v . GAO h m wk m wh w .A , GAO FHFA’ m wh h bv HERA.



108 | Appendix B: Inormation Required by the Inspector General Act


Sv FHFA-OIG bh h m h FHFA’ . T mmz 36 hh 48.



Appendix C: FHFA-OIG Reports | 109


Appendix C: FHFA-OIG Reports

S www.h.v m FHFA-OIG’ .

evALUATiON rePOrTS

Evaluation o the Federal Housing Finance Agency’s Oversight o Freddie Mac’s Repurchase Settlement with Bank o America (EVL-2011-006,Smb 27, 2011).

Evaluation o Whether FHFA Has Sucient Capacity to Examine the GSEs (EVL-2011-005, Smb 23, 2011).

Evaluation o FHFA’s Oversight o Fannie Mae’s Management o Operational Risk (EVL-2011-004, Smb 23, 2011).

Evaluation o FHFA’s Role in Negotiating Fannie Mae’s and Freddie Mac’sResponsibilities in reasury’s Making Home Afordable Program (EVL-2011-003,A 12, 2011).

AUDiT rePOrTS

FHFA’s Oversight o Fannie Mae’s Deault-Related Legal Services (AUD-2011-004,Smb 30, 2011).

Cliton Gunderson LLP’s Independent Audit o the Federal Housing Finance Agency’s Privacy Program and Implementation - 2011 (AUD-2011-003,Smb 30, 2011).

Cliton Gunderson LLP’s Independent Audit o the Federal Housing Finance Agency’s Inormation Security Program - 2011 (AUD-2011-002,Smb 29, 2011).

Audit o the Federal Housing Finance Agency’s Consumer Complaints Process (AUD-2011-001, J 21, 2011).

OTHer rePOrTS

Strategic Plan: Fiscal Years 2012-2014 (Smb 7, 2011).



110 | Appendix D: FHFA-OIG Organizational Chart


Appendix D: FHFA-OIG Organizational Chart

Inspector General

Principal Deputy

Inspector General

Chief Counsel

Director of

Policy, Oversight,

and Review

Director of

Special Projects

DeputyInspector General

Administration


Audits


Evaluations


Investigations

Director of

External Affairs

Chief of

Staff



Appendix D: FHFA-OIG Organizational Chart | 111

SEMIANNUAL REPOR O HE CONGRESS | SEPEMBER 30, 2011SEMIANNUAL REPOR O HE CONGRESS | SEPEMBER 30, 2011



112 | Appendix E: Endnotes


Appendix E: Endnotes

1. F H F A O I G, Evaluation

o the Federal Housing Finance Agency’s Oversight o Freddie Mac’s Repurchase Settlement with Bank o America (S. 27, 2011) (EVL-2011-006) ( www.h.v/C/F/EVL-2011-006. ).

2. F H F A O I G, Evaluation o FHFA’s Role in Negotiating Fannie Mae’s and Freddie Mac’s Responsibilitiesin reasury’s Making Home Afordable Program (A. 12, 2011) (EVL-2011-003) ( www.h.v/C/F/EVL-2011-003.).

3. F H F A O I G, Evaluation o Federal Housing Finance Agency’s Oversight o Fannie Mae’s and Freddie

Mac’s Executive Compensation Programs (M. 31, 2011) (EVL-2011-002)

( www.h.v/C/F/Ex%20Cm%20DR%2003302011%20,%20. ).

4. F H F A O I G, Evaluation o Whether FHFA Has Sucient Capacity to Examine the GSEs (S. 23,2011) (EVL-2011-005) ( www.h.v/C/F/EVL-2011-005.).

5. Id .

6. F H F A O I G, Audit o the Federal Housing Finance Agency’s Consumer Complaints Process (J21, 2011) (AUD-2011-001) ( www.h.v/C/F/AUD-2011-001.).

7. F H F A O I G, FHFA’s Oversight o Fannie Mae’s Deault-Related Legal Services (S. 30, 2011)(AUD-2011-004) ( www.h.v/C/F/AUD-2011-004.).

8. F H F A O I G, Evaluation o FHFA’s Oversight o Fannie Mae’s Management o Operational Risk (S.23, 2011) (EVL-2011-004) ( www.h.v/C/F/EVL-2011-004.).

9. H Em Rv A 2008 (HERA), Pb. L. N. 110-289, § 1145.

10. Id . § 1117.

11. Em Em Sbz A 2008 (EESA), Pb. L. N. 110-343, § 2.

12. Id . § 110.

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Appendix E: Endnotes | 113


13. Id .

14. U S Dm h , W m b S

h mh F. Gh b h S Cmm Bk, H & Ub A (M. 15, 2011) ( www..v/-/-/P/1103.x ).

15. Gvm Ab O, Fannie Mae and Freddie Mac: Analysis o Options or Revising the Housing Enterprises’ Long-term Structures, 3 (S. 2009) (GAO/09-782) ( www..v/w.m/09782. ).

16. F H F A, FHFA Updates Projections o Potential Draws or Fannie Mae and Freddie Mac ( www.fhfa.gov/

webles/22737/GSEProjF.pdf ) ( O. 27, 2011).

17. F H F A, Data as o September 30, 2011 on reasury and Federal Reserve Purchase Programs or GSE and Mortgage-Related Securities, 4-7 ( www.fhfa.gov/webles/22692/

TSYSupport09302011.pdf ) ( O. 7, 2011).

18. F H F A, Te FHLBank System ( www.h.v/D.x?P=22) ( S. 22, 2011).

19. FHLBk O F, History o Service ( www.hb-.m/wb_Wb/B/m--h-29 ) ( S.22, 2011).

20.

Id .; FHLBk, Frequently Asked Questions: Federal Home Loan Bank Advances ( www.hbk.m/vvw_q_v.hm) ( S. 22, 2011).

21. FHLBk O F, Funding ( www.hb-.m//wb_Wb/B/-30 ) ( S. 22, 2011);FHLBk, Frequently Asked Questions: Federal Home Loan Bank

Advances ( www.hbk.m/vvw_q_v.hm)( S. 22, 2011).

22. F M, Loan Limits or Conventional Mortgages, 2011 Loan Limits ( www.efanniemae.com/sf/refmaterials/loanlimits/

indexjsp?from=hp) ( O. 7, 2011).

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http://www.gao.gov/new.items/d09782.pdf


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http://www.fhlb-of.com/ofweb_userWeb/pageBuilder/mission--history-29


http://www.fhlbanks.com/overview_faqs_advances.htm


http://www.fhlb-of.com//ofweb_userWeb/pageBuilder/funding-30



http://www.efanniemae.com/sf/refmaterials/loanlimits/index.jsp?from=hp


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wb/22599/PLSL__090211. ).

25. F H F A, Federal Housing Finance Agency Action Regarding Court Consideration o Proposed Bank o America Settlement (A.30, 2011) ( www.h.v/wb/22570/BA83011. ).

26. F H F A, Foreclosure Prevention & Renance Report Second Quarter 2011, FHFA Federal Property Manager’s Report .

27. F H F A, Dm H Ub

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28. F H F A, Request or Inormation: Enterprise/ FHA REO Asset Disposition (A. 10, 2011) ( www.h.v/

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29. S & P’, Ratings On Select GREs And FDIC- And NCUA-Guaranteed Debt Lowered Ater Sovereign Downgrade (A. 8, 2011).

30.

F H F A, Statement o FHFA Acting Director Edward J. DeMarco on Recent Standard & Poor’s Rating Action (A. 8, 2011)( www.h.v/wb/22171/SP_m_080811. ).

31. F H F A, FHFA Announces Completion o ReCorp Obligation and Approves FHLB Plans to Build Capital (A. 5, 2011) ( www.h.v/wb/21861/R080511. ).

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http://www.fhfa.gov/webfiles/22367/FHFARFIReleaseFinal.pdf


http://www.fhfa.gov/webfiles/22366/RFIFinal081011.pdf


http://www.fhfa.gov/webfiles/22171/SP_statement_080811.pdf

http://www.fhfa.gov/webfiles/21861/Refcorp080511.pdf

http://www.fhfa.gov/webfiles/21571/ReporttoCongress201061311.pdf




http://www.fhfa.gov/webfiles/21861/Refcorp080511.pdf

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http://www.fhfa.gov/webfiles/22570/BofA83011.pdf









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36. B Gv h F Rv Sm, Dm H Ub Dvm, F D I C, F H F A, O h Cm h C, S Exh Cmm, Agencies Seek Comment on Risk Retention Proposal (M. 31, 2011) ( www.h.v/wb/20689/QRM331F. ).

37. B Gv h F Rv Sm, Dm H Ub Dvm, F D I C, F H F A, O h Cm h C, S Exh Cmm, Agencies Extend Comment Period on Risk Retention Proposed Rulemaking (J 7, 2011) ( www.h.v/wb/21523/RkRxPR6711. ).

38. F H F A, FHFA Directs Fannie Mae and Freddie

Mac to Adopt Uniorm Improvements to Foreclosure Attorney Networks (O.18, 2011) ( www.h.v/wb/22718/RANDCP101811. ).

39. HERA § 1108 ( S 1313b h F H ES S A, 12 U.S.C. § 4513b).

40. Commissioner v. Wilcox, 327 U.S. 404 (1946).

41. N Cm Lw C,Foreclosure Report: Survey o State Foreclosure Laws ( www../m//_m/_w/v --.) ( S. 22, 2011).

42. Id .

43. N Cm Lw C, Foreclosure Mediation Programs by State ( www..//-m-m-b-.hm) ( S. 22, 2011).

http://www.fhfa.gov/webfiles/21572/FHFA2010_RepToCongress6_13_11.pdf


http://www.fhfa.gov/webfiles/21190/SAI42811Final.pdf

http://www.efanniemae.com/sf/servicing/pdf/saioverview.pdf


http://www.freddiemac.com/service/factsheets/pdf/servicing_alignment.pdf


http://www.fhfa.gov/webfiles/20689/QRM331F.pdf


http://www.fhfa.gov/webfiles/21523/RiskRetentionextPR6711.pdf


http://www.fhfa.gov/webfiles/22718/RANDCP101811.pdf


http://www.nclc.org/images/pdf/foreclosure_mortgage/state_laws/survey-foreclosure-card.pdf


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44. D C H Ph, Foreclosure Mediation Program ( www.hh./.hm)( S. 22, 2011).

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46. Dw S H Ah, NEW Residential Mortgage Foreclosure Mediation Program ( www.h./m.hm )( S. 22, 2011); N Cm Lw C, Foreclosure

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48. C C Pb P, Mortgage Mediation ( www..//m_hm ) ( O. 27, 2011);N Cm Lw C, Foreclosure Mediation Programs by State ( www..//-m-m-b-.hm) ( S. 22, 2011).

49. Gv h S Hw, Help or At-Risk Homeowners ( www.hw.v/v/wm/ -h-w/h---k-

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50. C C Ck C, Mortgage Foreclosure Mediation Program ( www.kh. /) ( S. 22, 2011);N Cm Lw C, Foreclosure Mediation Programs by State ( www..//-m-m-b-.hm) ( S. 22, 2011).

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http://www.deforeclosurehelp.org/mediation.html


http://www.disb.dc.gov/disr/cwp/view,a,1299,q,645508.asp

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53. S M C J Bh, Foreclosure Diversion Program ( www...m./_//x.hm) (S. 22, 2011); N Cm Lw C, Foreclosure MediationPrograms by State ( www..// -m-m-b-.hm) ( S. 22, 2011).

54. M Hm Ow Pv Eq, Maryland’s Foreclosure Mediation ( www.mh.h.m.v/FM/P/.x) ( S. 22, 2011); N Cm Lw C,Foreclosure Mediation Programs by State ( www..//-m-m-b-.hm) ( S. 22, 2011).


56. Cmm Em Dvm A Mh, Michigan Foreclosure ask Force ( www.m.//m/x.h) ( S. 22, 2011); N Cm Lw C, Foreclosure

Mediation Programs by State ( www..// -m-m-b-.hm) ( S. 22, 2011).

57. M H F A, Foreclosure Prevention ( www.mh.v/m/hm-w/) (S. 28, 2011).

58. T Nv J, Foreclosure Mediation ( www.vj./x.h/m) ( S. 12, 2011); NCm Lw C, Foreclosure Mediation Programs by State ( www..//-m-m-b-.hm) ( S. 22, 2011).

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60. Nw J J F M Pm, Hm P ( www.j.v/m /) ( S. 22, 2011);N Cm Lw C, Foreclosure Mediation Programs by State



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http://www.dfi.wa.gov/consumers/homeownership/foreclosure-mediation.htm


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Federal Housing Finance AgencyOice o Inspector General

Semiannual Reportto the Congress

second semiannual report

Documents