Office of Federal Housing Enterprise Oversight (OFHEO)
The federal regulatory body that oversees the government-sponsored entities (GSEs), Freddie Mac and Fannie Mae. It was established as an independent entity within the Department of Housing and Urban Development by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. The OFHEO works to ensure the capital adequacy and financial safety of the two housing GSEs. Investopedia Says:
OFHEO's mission is to promote housing and a strong national housing finance system by ensuring the safety and soundness of Fannie Mae and Freddie Mac. OFHEO's role as Freddie Mac's and Fannie Mae's regulator has become increasingly more visible as the GSE's retained portfolios of mortgages have grown in size and complexity.
OFHEO also sets the annual conforming loan limits. Related Terms:
Conforming Loan
Conventional Mortgage
Fannie Mae - Federal National Mortgage Associaton
Freddie Mac - Federal Home Loan Mortgage Corporation
Mortgage-Backed Securities - MBS |