An independent federal agency that was created on July 30, 2008, under the provisions of the Federal Housing Regulatory Reform Act of 2008 (Division A of the Housing and Economic Recovery Act of 2008) (12 USCA § 4568 ??), to 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", Mission Statement of FHFA (www.fhfa.gov).

FHFA was created as a successor to the Federal Housing Finance Board (FHFB) and the office of Federal Housing Enterprise Oversight (OFHEO), absorbing the powers and authority of both agencies. FHFB has a statutory responsibility to ensure that Fannie Mae, Freddie Mac (the primary sources of secondary mortgage financing) and the FHLBanks (one of the principal sources of primary mortgage financing) operate in a financially safe and sound manner, are adequately capitalized, able to raise funds in the capital markets, and carry out their housing finance missions. It also has the power to place a government sponsored enterprise (GSE) into receivership or conservatorship. (On September 4, 2008 it placed Fannie Mae and Freddie Mac into conservatorship.) See also Federal National Mortgage Association (FNMA or Fannie Mae, Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) , Federal Home Loan Banks (FHLBanks) .