Sandra L Thompson Named Acting Director of FHFA

After the US  Supreme Court ruled that the structure of the Federal Housing Finance Agency violates the separation of powers principles in the Constitution because it didn’t allow the director to be fired by the president, the Biden Administration moved quickly to remove director Mark Calabria and named Sandra L. Thompson the acting director of FHFA effective immediately. 

FHFA was created by the Housing and Economic Recovery Act (HERA) of 2008  to oversee Fannie Mae, Freddie Mac and the Federal Home Loan Bank System. It is responsible for oversight of the $7.2 trillion mortgage finance market.

“I am honored that President Biden has designated me to be Acting Director of the Federal Housing Finance Agency until a permanent Director is confirmed,” Thompson said in a prepared statement. “I look forward to serving in this role at this crucial time.”

Thompson outlined her priorities in the statement. “As a longtime regulator, I am committed to making sure our nation’s housing finance systems and our regulated entities operate in a safe and sound manner,” she said. “We can accomplish this, and at the same time have a laser focus on mission and community investment. There is a widespread lack of affordable housing and access to credit, especially in communities of color. It is FHFA’s duty through our regulated entities to ensure that all Americans have equal access to safe, decent, and affordable housing.” 

Thompson, a graduate of Howard University, has served as deputy director of the Division of Housing Mission and Goals (DHMG) since 2013. In that role, she oversaw FHFA’s housing and regulatory policy, capital policy, financial analysis, fair lending and all mission activities for Fannie Mae, Freddie Mac and the Federal Home Loan Banks. 

Before arriving at FHFA, Thompson worked at the Federal Deposit Insurance Corporation (FDIC) for more than 23 years in various leadership positions, including director, Division of Risk Management Supervision. At the height of the financial crisis, Thompson led the FDIC’s examination and enforcement program for risk management and consumer protection. She also led the FDIC’s outreach initiatives in response to a crisis of consumer confidence in the banking system. 

In a note yesterday, before the Thompson appointment was announced and after the Supreme Court decision, the National Multifamily Housing Council (NMHC) said that the ruling could have implications on various multifamily activities. 

“Multifamily policy topics potentially in flux as a result of today’s ruling include the caps on multifamily lending activity, previously eliminated policies for targeted lending in high-cost markets, green lending activities, participation in LIHTC markets, and even broader questions about the Enterprises’ role in addressing rental housing affordability in America,” according to the NMHC.

It also reaffirmed the importance of Freddie and Fannie to the apartment industry.

“The health and stability of Fannie and Freddie is critical to the future of the multifamily industry,” according to the NMHC. “The Enterprises ensure that multifamily capital is available in all markets at all times, so the apartment industry can address the broad range of America’s housing needs.”