FHFA Followed Its Guidance When Making Conservatorship Decisions But Needs to Improve Retention of Decision Documentation and Update the Conservatorship Decision Policy and Procedures

Date Issued

Wednesday, March 29, 2023

Submitting OIG

Federal Housing Finance Agency OIG

Other Participating OIGs

Federal Housing Finance Agency OIG

Agencies Reviewed/Investigated

Federal Housing Finance Agency

Report Number

AUD-2023-003

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 1 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use	Additional Details
AUD-2023-003-2	No	$0	$0
FHFA should update FHFA’s conservatorship decision policy and procedures to align with current practice and: a. Provide clarity on approval authorities for issuing conservatorship directives and CSS decisions. b. Provide guidance on performing and documenting monitoring and surveillance activities. c. Establish procedures for issuing guidance decisions. d. Establish procedures describing FHFA’s practice to de-escalate LOI decision requests.