The Federal Housing Finance Agency (FHFA) recently announced the establishment of an Office of Financial Technology. According to an agency release, the new department will serve as a centralized source of information to support FHFA in addressing emerging risks and advancing agency priorities related to the adoption and deployment of financial technology (fintech). One of the focus areas of this new department will be engaging market participants, industry, nonprofits, consumer groups, and academia to facilitate the sharing of best practices of housing finance fintech and innovation.
“When used responsibly, fintech has the potential to improve borrowers’ experiences with the mortgage process by reducing barriers, increasing efficiencies, and lowering costs,” said Director Sandra L. Thompson. “The new office will help advance effective risk management as FHFA evaluates applications of fintech in housing finance, as well as in compliance, and regulatory activities.”