Washington, D.C. – Armando Falcon, Jr., Director of the Office of Federal Housing Enterprise Oversight (OFHEO), financial safety and soundness regulator of Fannie Mae and Freddie Mac (the Enterprises), has released the first of a set of regulations under an infrastructure project announced in July.
OFHEO's regulatory initiatives address four components: OFHEO organization, enterprise corporate governance, safety and soundness issues and compliance matters.
OFHEO has sent the following proposed rules to the Federal Register for publication:
1. Enforcement. A proposed rule with a 60-day comment period on revisions to its rules governing administrative enforcement proceedings intended to clarify the scope of its authority to issue cease and desist orders and to impose various corrective and remedial sanctions, including civil money penalties, on Fannie Mae and Freddie Mac.
2. Executive compensation. A proposed rule with a 90-day comment period that codifies much of current practice related to the procedures of transmitting information about covered officers subject to review for executive compensation provided in the OFHEO enabling statute.
3. Assessment. A proposed rule with a 30-day comment period codifying its existing practices regarding the calculation and payment of its assessments of the Enterprises.
OFHEO issued policy guidances on the following:
4. Safety and Soundness. OFHEO issued a policy guidance on safety and soundness policies required to be maintained by the government sponsored enterprises. The guidance provides illumination of the broad areas and types of practices that have been and continue to be expected to be addressed by the Enterprises to meet safety and soundness concerns.
5. Non-mortgage investments. OFHEO issued a policy guidance on information regarding nonmortage, liquidity investments of the government sponsored enterprises. The supervisory guidance details initiatives with the enterprises regarding OFHEO's safety and soundness expectations for their non-mortgage investment activities.
OFHEO will publish a final rule on the following:
6. Reorganization of rule numbers. OFHEO published as a final rule a reorganization of its rules to accommodate changes being undertaken as part of the regulatory infrastructure project.
Rules of Practice and Procedure: Proposed Rule
Stefanie Johnson (202) 649-3030