Federal Housing Finance Board

Budget, Performance and Financial Snapshot Fiscal Year 2008

Who We Are

Mission: FHFB Mission: Ensure that the FHLBanks are safe and sound so they serve as a reliable source of liquidity and funding for the nation?s housing finance and community investment needs. See page 23 at the following link: http://www.fhfa.gov/webfiles/175/fhfasiteFHFAPAR111708.pdf FHFA Mission: Promote a stable and liquid mortgage market, affordable housing and community investment through safety and soundness oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks. See page 8 at the following link: http://www.fhfa.gov/webfiles/175/fhfasiteFHFAPAR111708.pdf

Organization: On July 30, 2008, the Housing and Economic Recovery Act of 2008 (HERA) was signed, creating the Federal Housing Finance Agency (FHFA). OFHEO?s Director James B. Lockhart, II was designated the first Director of FHFA. This new agency combines the responsibilities of FHFB, the Office of Federal Housing Enterprise Oversight (OFHEO) and the HUD GSE Mission Office. Although the new law allows a year to transition employees and consolidate functions, on October 27, 2008, all OFHEO and FHFB employees were transferred to the new agency. This snapshot covers activities of the FHFB for fiscal year 2008. The FHFB was established as an independent agency by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. The organizational structure of FHFB prior to the enactment of HERA consisted of a five-member Board of Directors and was organized into five offices.

Personnel: At the end of FY2008 the Finance Board had a staff of 138.5 employees and was actively recruiting to fill 11 vacancies. Federal Housing Finance Agency - Careers

Budgetary Resources: The budgetary resources for FHFB in FY 2008 totaled $38.7 million dollars. In FY2009 the budget for the newly created FHFA (a non-appropriated agency) is $120.8 million. This represents only .002 percent of the $6.2 trillion of mortgages funded by the Enterprises and the Federal Home Loan Banks (The Banks). The Banks? component of this FY 2009 budget totals $42.0 million, an 8.5 percent increase from FY 2008. This increase reflects the Banks? share of start-up costs for FHFA?s new infrastructure and a strengthened supervision program for the Banks. FHFA is establishing a working capital fund (WCF) of $3 million in FY 2009, in line with other federal financial regulators. FHFA?s regulated entities will share in the funding of the WCF. The chart below also includes the budget for the regulation of the Enterprises.


Budget Snapshot

Total Spending FY 2005-2009
Total Outlays
 Mandatory $36 $36 $36 $38 $42
 Discretionary $0 $0 $0 $0 $0
Total $36 $36 $36 $38 $42
$ in millions
Top 5 Programs By Budget
  Top 5 Programs
  FHFA
2008 $38
2009 $42
$ in millions

Performance Snapshot

Accomplishments: The FHFB achieved all of its performance goals in FY 2008. The agency continued its efforts to strengthen its supervisory program through more intense integration of its off-site monitoring program and tools into the examination program. As part of these efforts, FHFB formalized the organization of its Office of Supervision into two principal functional areas ? Examinations and Off-Site monitoring and Analysis. As a result, the FHFB ensured that each FHLBank continuously met or exceeded its minimum capital requirements, conducted all planned safety and soundness and affordable housing program (AHP) examinations, expanded and enhanced AHP data collection, and ensured that the FHLBanks awarded more than $115 million in AHP subsidies.

Challenges: Adverse economic conditions currently affecting the nation?s financial and mortgage industry, including the stock market, foreign banks and increasing unemployment, have the potential to continue to affect the financial condition of the FHLBanks. Restricted access to term financing poses new challenges for the FHLBanks? management of interest rate risk. Federal government support for Fannie Mae, Freddie Mac and certain large depository institutions, may disadvantage the FHLBanks in their efforts to raise funds in the capital markets. However, FHLBanks entered credit facilities with the U.S. Treasury as provided by HERA and have the ability to ask for further support if needed. Working together with the Congress and the administration, FHFA can restore confidence for a stronger and safer future for the mortgage markets, homeowners, and renters in America.
Financial Snapshot
Clean Opinion on Financial Statements Yes
Timely Financial Reporting Yes Material Weaknesses 0
Improper Payment Rate None Total Assets $9
Total Liabilities $5 Net Cost of Operations $0
$ in millions
  Footnote:The responsibility of oversight and supervision of the Federal Home Loan Banks, Fannie Mae and Freddie Mac transferred from OFHEO and FHFB to FHFA on July 30, 2008, with the enactment of the Housing and Economic Recovery Act of 2008.

Summary of Federal Housing Finance Board Ratings for Fiscal Year 2008

 
                        FY 2008 Performance
Results per Strategic Goal
  Met/Exceeded     Not met but improved over prior years
  Not met target     Data not yet available
Budget per Strategic Goal
($ in millions)
Strategic Goal: The Federal Home Loan Banks operate safely and soundly.
 
Sample chart
          
2008 Actual = $31
Performance Measure(s)* 2006 Results 2007 Results 2008 Target 2008 Results 2009 Target
Conduct all safety and soundness activities, including annual examinations, visitations and off-site monitoring. Achieved Achieved by 9/30/08 Achieved   by 9/30
Strategic Goal: The affordable housing and community investment programs of the FHLBanks operate effectively and efficiently.
 
Sample chart
          
2008 Actual = $7
Performance Measure(s)* 2006 Results 2007 Results 2008 Target 2008 Results 2009 Target
Conduct all affordable housing activities, including annual examinations and off-site monitoring. Achieved Achieved by 9/30/08 Achieved   by 9/30
  * This measure was selected from a number of performance measures aimed at the specific strategic goal