James B. Lockhart, Director of the Office of Federal Housing Enterprise Oversight (OFHEO) has released OFHEOs 2008 Report to Congress, detailing the agency's annual examination conclusions and regulatory oversight of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, for the year 2007. The report concludes that both Enterprises made very good progress in remediating their operational areas and providing stability and liquidity to the mortgage markets, but they remain "a significant supervisory concern" because of increased mortgage market and credit risk.