FHFA OIG Reports

Division of Federal Home Loan Bank Regulation Needs to Improve Controls Over Internal Model Risk

The FHFA Office of Inspector General issued audit AUD-2025-009 finding that the Division of Federal Home Loan Bank Regulation needs to improve controls over internal model risk. The audit examined whether the Division has adequate policies, procedures, and practices to effectively manage model risk associated with internal models used by the Federal Home Loan Banks. The OIG made recommendations for improving controls.

FHFA Continues Monitoring Fannie Mae Multifamily Loan Loss Allowance

FHFA OIG published Evaluation Report EVL-2026-001 on January 6, 2026, assessing FHFA's continued monitoring and assessment of the adequacy of Fannie Mae's allowance for loan losses in its multifamily line of business. The report reviews FHFA's supervisory oversight of the government-sponsored enterprise's credit loss reserving practices for multifamily loans.

FHFA OIG Audit of Legal Service Payment Controls (AUD-2026-001)

FHFA OIG issued Audit AUD-2026-001 evaluating controls over legal service payments. The audit found that FHFA's payment controls were generally effective but did not ensure full compliance with all contractual requirements. The review assessed whether legal service expenditures were properly authorized, documented, and aligned with contractual terms. No specific penalties or corrective action deadlines were stated in the audit report.

FHFA Employee Reimbursement Noncompliance Findings

FHFA OIG issued Compliance Review EVL-2026-002 finding that FHFA did not consistently comply with its own policies and procedures for paying employee reimbursements and stipends. The audit examined internal controls over payment processes and identified instances of noncompliance. No specific monetary penalties or enforcement actions were stated in the report.

DER Oversaw Fannie Mae Multifamily Lenders Effectively, But Should Improve Documentation of Sampling Approach

FHFA OIG issued Audit AUD-2026-002 examining whether the Division of Enterprise Regulating effectively oversaw Fannie Mae's multifamily lenders and loan monitoring activities. The audit found that DER generally performed its oversight duties effectively. However, the report identified documentation deficiencies related to DER's sampling approach used in its oversight activities. No compliance deadlines or penalties were stated in the report.