While the future of Fannie Mae and Freddie Mac remains uncertain, there are a number of things the two are doing to improve their operations and financial soundness, according to Patrick Lawler, chief economist and associate director of the Federal Housing Finance Agency (FHFA).

Speaking at the SourceMedia Best Practices in Loss Mitigation Conference in Dallas Monday, Lawler said the GSEs’ book of business post-conservatorship is profitable and well underwritten. But with Fannie and Freddie providing secondary market liquidity for about 65% of all new mortgages, there are steps they can take to improve no matter how long they remain the dominant force in the industry.

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