Federal Home Loan: Serving Our Mission is Key to Our Success
I’ve been CEO of Freddie Mac for just over six months. I’ve spent 2021 listening and learning, working to understand all areas of the organization’s business – from what it has been to what it can be. As we enter a new year, I would like to share my thoughts on the organization and what I believe we can accomplish together in the coming year.
Our mission is our priority
As someone who has spent most of his career in the housing finance industry, I knew Freddie Mac long before I joined. I understood Freddie Mac’s long-standing mission to provide liquidity, stability and affordability to the housing market. I am a strong believer in this mission, especially the importance of affordable, quality housing for families, neighborhoods and communities. Everything I have seen and heard so far in my tenure as CEO has only reinforced this belief.
In 2022 and beyond, our strategic priorities will all flow from our mission – which we interpret broadly to meet the country’s broader housing needs, both in times of prosperity and in times of crisis. These strategic priorities include:
Improve liquidity in mortgage and capital markets.
Stabilize the housing market throughout the economic cycle, in particular by helping families in difficulty to remain in their homes.
Work with a range of housing market actors to promote greater access and supply of affordable and sustainable housing across the country.
Promote housing equity.
Work with lenders of all sizes to better serve their communities.
Integrate environmental, social and governance strategies into our activities and operations.
To fulfill our mission and meet these priorities, Freddie Mac must continue to practice excellence in risk management, deliver results and grow our world-class team. We must also commit to continuously reviewing our current business and risk environment in search of new and better ways to achieve our goals. These are the pillars we will focus on every day to support our mission to make home possible.
Practice Risk Management Excellence
As an organization, we are intensely focused on being effective risk managers. The better we ensure our security and solidity, the more broadly we will be able to support our mission throughout the economic cycle and particularly in times of crisis. By continually improving our operations and risk management, we can better ensure the safety and soundness of the organization and position the company to make the overall housing finance system safer and more efficient.
To sustain the market and serve our mission, Freddie Mac must continue to generate strong financial results, build capital and excel against our business goals.
Our performance over the past few years has been solid, but there is still work to be done. We must continue to offer innovative solutions to advance our mission. We need to increase efficiency at all levels of the business to improve productivity and reduce costs throughout housing finance. And we must continue to work with our partners and stakeholders to serve borrowers, tenants, investors and lenders.
Developing the talents of today and tomorrow
It is my privilege to lead a solid and committed team. To sustain the company and the market in the future, we must ensure that we develop our next generation of leaders. That’s why we’re also focused on fostering a culture where talented people from all walks of life, who do things the right way, can succeed.
Meet a moment of great potential
Freddie Mac performed very well in 2021. We were able to make home possible for 5 million homeowners and renters, despite a global pandemic and unprecedented housing supply challenges. In fact, we provided $1.3 trillion of liquidity to the mortgage market last year.
We have the potential to do even more. For example, promoting equity in housing is an important goal in 2022, and we will soon be unveiling a comprehensive equity housing finance plan to increase sustainable homeownership and rental opportunities. It complements our existing mission work, such as our Duty to Serve plan, achieving our affordable housing goals, and our efforts to educate and assist borrowers and renters.
For me, 2021 has been a year primarily about listening, learning, and exploring the potential of a great organization. This included engaging with management and employees as they worked to achieve extraordinary results for our housing finance market and economy. As we look to 2022, we at Freddie Mac are excited to take these efforts to the next level. Let’s get to work.