The Federal Housing Finance Agency (FHFA) has released a notice of proposed
rulemaking that would require Fannie Mae and Freddie Mac (the GSEs) to develop
resolution plans.
FHFA says these plans “would facilitate a rapid and orderly
resolution should FHFA have to be appointed their receiver under the Housing
and Economic Recovery Act of 2008.” According to the press release, the proposal is designed to ensure the GSEs
are prepared
in the same way as financial institutions regulated by the Federal
Reserve and the Federal Deposit Insurance Corporation to react to another
adverse financial situation. Under the Dodd-Frank Wall Street Reform and
Consumer Protection Act, larger institutions must submit living wills that detail how their core
business lines would be maintained
to prevent the kind of widespread disruption
triggered by the failure of Lehman Brothers and Bear Stearns prior to the Great


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