In accordance with Title XIV of The Dodd-Frank Wall Street Reform and Consumer Protection Act 2010, the Federal Housing Finance Agency (“FHFA”) Officer of Inspector General (“FHFA-OIG”) proposed reforms to the enterprises’ fundamental roles and structures. The proposal recommends that the FHFA implement several steps under its regulatory authority in the short to medium-term to significantly reduce the Enterprises’ dominant position in the housing finance system, which the Administration views as contributing to excessive risk-taking and exposing taxpayers to significant losses. These short- to medium-term regulatory steps, including requiring the Enterprises to raise guarantee fees on the mortgage-backed securities they issue, are intended to offset their cost advantages over potential competition and thereby encourage greater private sector participation and capital in mortgage finance. Over the longer-term, the Administration proposes that Congress should enact legislation that could further restrict the Enterprises’ role in housing finance or eliminate them altogether.