The Housing and Economic Recovery Act of 2008, Public Law 110-289 enhances the safety and soundness of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System; imposes licensing and registration requirements on mortgage loan originators; and reduces the number of mortgage foreclosures. The Act also creates a new, independent regulator for the government sponsored housing enterprises (GSEs), called the Federal Housing Finance Agency (FHFA). This agency has the authority to establish capital standards for the GSEs and also to establish prudential management standards addressing internal controls, audits and risk management. The FHFA can restrict asset growth and capital distributions by undercapitalized institutions and, if necessary, can place an insolvent institution into receivership.