The Federal Housing Finance Agency (FHFA) recently released its strategic planfor fiscal years 2013 through 2017 and an update of its planning to replace the infrastructure currently used by Fannie Mae and Freddie Mac (the Enterprises) to support mortgage securitization. An infrastructure update is part of the strategic plan as well, and the two documents together illustrate the dilemma of the FHFA as it attempts to plan for a future in housing finance that political leaders in Washington have yet to address.

The strategic plan includes four principal goals:

1. The safe and sound operation of the Enterprises and the Federal Home Loan Banks (FHL Banks);

2. To promote stability, mitigate risk and maintain access to funding in the housing finance market as currently operated;

3. As conservator of the Enterprises, preserve franchise value, minimize axpayer loss and cooperate with the Administration to avoid borrower defaults on home mortgage loans; and

4. To prepare for a transition to a post-conservatorship housing finance market, by establishing appropriate standards and a single securitization platform to support multiple financing vehicles...