Which government agency oversees Fannie Mae and Freddie Mac?

The Federal Housing Finance Agency (FHFA) is the correct answer because it serves as the primary regulator and overseer of Fannie Mae and Freddie Mac. The FHFA was established to oversee the functioning of these government-sponsored enterprises (GSEs) to ensure their financial stability and to protect taxpayers. The agency's role includes ensuring that Fannie Mae and Freddie Mac operate in a safe and sound manner while fulfilling their mission to provide liquidity, stability, and access to the housing market.

Other agencies listed have different responsibilities. The Department of Housing and Urban Development focuses on national housing policy but does not regulate Fannie Mae and Freddie Mac directly. The Nationwide Mortgage Licensing System is primarily concerned with licensing mortgage professionals and does not have a regulatory role over GSEs. The Consumer Financial Protection Bureau aims to protect consumers in financial transactions but does not oversee the operations of Fannie Mae or Freddie Mac. Each of these agencies has its own focus, which is distinct from the regulatory oversight provided by the FHFA.