Whether those events are local or national is also a factor. Today’s RFI will help FHFA better understand and address the regulated entities’ exposure to climate and natural disaster risk,” said Director Mark Calabria.įannie Mae’s 2019 Annual Report of Form 10-K notes the occurrence of a major natural or environmental disaster, terrorist attack, cyber-attack, pandemic or similar event could have a negative impact on its credit losses and credit-related expenses. Historically, the ability to assess the scale, timing, location, and impact of such risks has been limited. “Natural disasters can adversely affect the regulated entities. 19, 2021 – opens the floor on 26 different questions that decipher how the FHFA should define climate and natural disaster risk, the risk management strategies the FHFA should deploy and prioritization among other variables the organization is considering. The Request for Input (RFI) – available for comments until Apr.
The Federal Housing Finance Agency (FHFA) announced Tuesday that it is requesting input on the current and future risk of natural disasters and climate change on Fannie Mae and Freddie Mac, especially as it relates to the housing financial system overall.