Federal Housing Enterprises: OFHEO Faces Challenges In Implementing a Comprehensive Oversight Program
GGD-98-6
Published: Oct 22, 1997. Publicly Released: Oct 22, 1997.
Skip to Highlights
Highlights
Pursuant to a legislative requirement, GAO assessed the Office of Federal Housing Enterprise Oversight's (OFHEO) capacity to fulfill its mission of helping to ensure the safety and soundness of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), focusing on: (1) identifying the reasons why OFHEO has not issued final risk-based capital standards for the enterprises even though there was a December 1, 1994, deadline for doing so; and (2) OFHEO's implementation of its safety and soundness examination responsibilities.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Examination and Oversight | The Directors, OFHEO and Office of Examination and Oversight (OEO), should promptly conduct an analysis to determine the examination office staff positions and financial resources that would be needed to cover all core and targeted risk areas within 1- or 2-year examination cycles. |
Closed – Implemented
OFHEO has implemented a plan.
|
| Office of Examination and Oversight | The Directors, OFHEO and OEO, should promptly identify the most appropriate examination cycle after considering the trade-offs between examination coverage and resource requirements that would be involved. |
Closed – Implemented
OFHEO has implemented a plan.
|
| Office of Examination and Oversight | The Directors, OFHEO and OEO, should promptly develop a strategy for obtaining the necessary examination office resources, which may involve reallocating OFHEO's existing full-time and contracting positions over time. |
Closed – Implemented
OFHEO has implemented a plan.
|
Full Report
Office of Public Affairs
Topics
Bank examinationBanking regulationCapitalFederal agency accounting systemsFinancial management systemsGovernment sponsored enterprisesInteragency relationsMortgage programsRisk managementStandards evaluation