Number: RL34657
Title: Financial Institution Insolvency: Federal Authority over Fannie Mae, Freddie Mac, and Depository Institutions
Authors: David H. Carpenter and M. Maureen Murphy, American Law Division 
Abstract: On September 7, 2008, the Secretary of the Treasury announced that the Federal Housing Finance Agency (FHFA), the newly installed regulator of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), had been appointed conservator of the two enterprises.1 Until the enactment of the Housing and Economic Recovery Act of 2008 (P.L. 110- 289), there was no clear statutory authority for dealing with the insolvency of either or both of these two mortgage giants. Among the reforms included in P.L. 110-289 were extensive provisions providing the FHFA with powers that substantially parallel those accorded the Federal Deposit Insurance Corporation (FDIC) to deal with every aspect of insolvencies of any bank or thrift institution that holds federally insured deposits.
Pages: 28
Date: September 10, 2008