Risk-Based Capital Regulation: Loss Severity Amendments
Risk-Based Capital Regulation: Loss Severity Amendments
FOR FURTHER INFORMATION CONTACT: David A. Felt, Deputy General Counsel, telephone (202) 414-3750, or Jamie Schwing, Associate General Counsel, telephone (202) 414-3787 (not toll free numbers), Office of Federal Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW., Washington, DC 20552. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Additionally, the TDD 1-(800) number referenced in Rulemaking documents attached to this page is obsolete and the 7-1-1 number should be used.
SUMMARY: The Office of Federal Housing Enterprise Oversight (OFHEO) is amending its regulations related to Risk- Based Capital (Risk-Based Capital Regulation) to enhance the transparency, sensitivity to risk, and accuracy of the calculation of the riskbased capital requirement for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). OFHEO is amending the Risk- Based Capital Regulation by changing the current loss severity equations that understate losses on defaulted singlefamily conventional and government guaranteed loans and by changing the treatment of Federal Housing Administration insurance in the Risk- Based Capital Regulation to conform the treatment to current law.
DATES: Effective Date: June 25, 2008.