OFHEO Releases Annual Report to Congress

April 10, 2007

OFHEO Releases Annual Report to Congress

WASHINGTON, DC — James B. Lockhart, Director of the Office of Federal Housing Enterprise Oversight (OFHEO) released OFHEO’s 2007 Report to Congress, detailing the agency’s annual examination conclusions and regulatory oversight of government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac for the year 2006. The report concludes that both Enterprises“remain a significant supervisory concern.”

“While both Enterprises made progress in correcting their problems, especially in systems, controls and financial reporting, it has taken much more time and money to correct than the GSEs or OFHEO expected,” said Lockhart. “A key indicator of a successful remediation will be the timely filing of annual and quarterly financial statements by each company with a clean audit opinion based on a controls-based audit. I am pleased to report that both companies are working hard to achieve this goal, but they still have much to do.”

In addition to the annual reports of examination for Fannie Mae and Freddie Mac, the report includes a review and summary of related topics, including:

  • Financial performance of the GSEs
  • OFHEO supervisory actions
  • Remediation efforts
  • Executive compensation
  • OFHEO legislative recommendations
  • OFHEO research and publications
  • Accounting environment at the GSEs
  • Historical data tables for the Enterprises