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•	The extent to which each Enterprise conducts initiatives in a safe and sound manner consistent with FHFA’s expectations for all activities;

•	The extent to which the outcomes of their activities support a competitive and resilient secondary mortgage market to support homeowners and renters;

•	The extent to which each Enterprise conducts initiatives with the consideration for diversity and inclusion consistent with FHFA’s expectations for all activities;

•	Cooperation and collaboration with FHFA, each other, the industry, and other stakeholders; and

•	The quality, thoroughness, creativity, effectiveness, and timeliness of their work products.

•	Continue to assess impediments to credit access and develop recommendations to address barriers, including work to:

◦	Continue to evaluate practices, including underwriting criteria, to improve access to single-family credit in a manner consistent with safety and soundness and implement improvements as appropriate.

◦	Consider options to use automated underwriting systems for loans that are currently manually underwritten.

◦	Evaluate options that would enable greater liquidity for Enterprise financing of energy or water efficiency investments in single-family and multifamily properties.

•	Complete work to enhance the Representation and Warranty Framework and continue work on related efforts to:

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◦	Complete the independent dispute resolution process in support of the Representation and Warranty Framework.

◦	Work with lenders to improve the quality and efficiency of the loan origination process, including providing lenders with feedback soon after delivery.

◦	Continue to assess policies and tools to review collateral valuations in the Representation and Warranty Framework context.

•	Update mortgage insurer master policy rescission relief principles to address early rescission relief offerings.

•	Assess improvements identified in 2015 to increase the effectiveness of pre-purchase and early delinquency counseling as well as homeownership education and begin implementation of initiatives as appropriate.

•	Informed by the analysis conducted in 2015, conclude assessment of leveraging alternate or updated credit scores for underwriting, pricing, and investor disclosures and, as appropriate, plan for implementation.

•	Complete assessment and, as appropriate, begin development of a high loan-to-value ratio refinance program to ensure a January 2017 implementation.

•	Develop and implement final strategy to promote HARP prior to expiration.

•	Finalize post-crisis loss mitigation options for borrowers, including loan modifications, and develop an implementation plan and timeline.

•	Enhance the Uniform Borrower Assistance Form.

•	Update and enhance the Enterprises’ servicer scorecard methodology.

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Provide a plan for continuing non-performing loan (NPL) sales to FHFA for approval. The plan should address: 1) the Enterprises’ broad NPL sales strategy; 2) potential expansion to multi-servicer pools; 3) efforts to continue offering small pools and strengthening nonprofit access and purchase opportunities; 4) consideration for improving borrower outcomes and, where appropriate, impacts on neighborhood stabilization; and 5) public reporting of loan performance post sale.

•	Continue to responsibly reduce the number of severely-aged delinquent loans held by the Enterprises at the national and local level.

•	Continue to responsibly reduce the number of real estate owned properties held by the Enterprises, including through the Neighborhood Stabilization Initiative.

•	Loans in affordable and underserved market segments, as defined in the Appendix, are to be excluded from the $31 billion cap.

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•	Meet the following credit risk transfer objectives:

◦	Transfer credit risk on at least 90 percent of the unpaid principal balance of newly acquired single-family mortgages in loan categories targeted for risk transfer.

▪	For 2016, target single-family loan categories include: non-HARP, fixed-rate terms greater than 20 years, and loan-to-value ratios above 60%.

◦	Transfer a substantial portion of the credit risk on the targeted loan categories covering most of the credit losses projected to occur during stressful economic scenarios.

◦	Continue efforts to evaluate, and implement if economically feasible, ways to transfer credit risk on other types of newly acquired single-family mortgages that are not included in the targeted loan categories.

◦	Continue to evaluate obstacles to expanding the investor base, propose ways to overcome these challenges, and work with FHFA to address them where possible.

•	Work with FHFA to conduct an analysis and assessment of front-end credit risk transfer transactions, including work to support a forthcoming FHFA Request for Input.

◦	Work with FHFA to engage key stakeholders and solicit their feedback.

◦	After conducting the necessary analysis and assessment, work with FHFA to take appropriate steps to continue front-end credit risk transfer transactions.

•	Continue current multifamily credit risk transfer initiatives and explore additional risk transfer opportunities.

•	Execute FHFA-approved retained portfolio plans to meet, even under adverse conditions, the annual PSPA requirements and the $250 billion PSPA cap by December 31, 2018:

◦	Any sales should be commercially reasonable transactions that consider impacts to the market, borrowers, and neighborhood stability.

•	Support FHFA’s development of its risk measurement framework for evaluating Enterprise business decisions during conservatorship.

ii.	Release 2: In 2018, implement the Single Security on the CSP for both Fannie Mae and Freddie Mac.

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•	Continue working with FHFA, each other, and CSS to meet the Release 1 and Release 2 timelines, which includes work to: 1) build and test the CSP; 2) implement the changes necessary to integrate the Enterprises’ related systems and operations with the CSP; and 3) implement the Single Security on the CSP for both Enterprises.

•	Incorporate the following design principles in developing the CSP:

◦	Focus on the functions necessary for current Enterprise single-family securitization activities.

◦	Include the development of operational and system capabilities necessary for CSP to facilitate the issuance and administration of a Single Security for the Enterprises.

◦	Allow for the integration of additional market participants in the future.

•	In 2016, publish an aligned timeline for implementing the Single Security on the CSP for both Enterprises in 2018. The timeline must provide stakeholders with at least 12 months notice prior to implementing the Single Security.

•	Work with FHFA to develop and implement a process at each Enterprise to:

◦	Assess new or revised Enterprise programs, policies, and practices for their effects on the cash flows of TBA mortgage-backed securities (e.g., prepayments and loan buy-outs).

◦	Provide on-going monitoring of purchases, security issuances, and prepayments.

◦	Provide all relevant information on a timely basis to support FHFA’s review process.

•	Continue to work with CSS to obtain and utilize input from the Single Security/CSP Industry Advisory Group.

•	Continue the development and implementation of the Uniform Closing Disclosure Dataset.

•	Continue the development and implementation of the Uniform Loan Application Dataset.

•	Assess and, as appropriate, implement strategies to improve the lending industry’s ability to originate and deliver e-mortgages to the Enterprises.

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•	Loans on properties subsidized by the Low Income Housing Tax Credit program, which limits tenant incomes at 60 percent of area median income (AMI) or below;

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Loans on properties developed under state or local inclusionary zoning, real estate tax abatement, loan or similar programs, where the property owner has agreed to: a) restrict a portion of the units for occupancy by tenants with limited incomes in accordance with the requirements of the state or local program; b) restrict the rents that can be charged for those units at affordable rents; and c) enforce these restrictions through a regulatory agreement or recorded use restriction; and

•	Loans on properties covered by a Section 8 Housing Assistance Payment contract where the contract limits tenant incomes to 80 percent of AMI or below. FHFA will not consider a unit that is occupied by a Section 8 certificate or voucher holder as a targeted affordable housing unit unless there is also a contract or a regulatory agreement or a recorded use restriction.

a.	Loans on affordable units in standard markets

b.	Loans on affordable units in high cost or very high cost markets

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