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Enterprise Capital Requirements

Publication Details
Type
Proposed Rulemaking
Document Number
2018–14255
Federal Register Publish Date
07/17/2018
Federal Register Citation
83 FR 33312
PDF Format
Comment Open Date
06/12/2018
Comment End Date
11/16/2018
Comment Status
Closed
Rulemaking Details
Rulemaking

Enterprise Regulatory Capital Framework

12/17/2020
Number
RIN-2590-AA95
Group
Fannie Mae
Freddie Mac
CFR
12 CFR Parts 1206, 1225, 1240, and 1750
CFR Description
ASSESSMENTS; ENTERPRISE CAPITAL REQUIREMENTS
Effective Date

Enterprise Capital Requirements

Contact Information

​​​FOR FURTHER INFORMATION CONTACT: Naa Awaa Tagoe, Senior Associate Director, Office of Financial Analysis, Modeling & Simulations, (202) 649-3140, NaaAwaa.Tagoe@fhfa.gov; Andrew Varrieur, Associate Director, Office of Financial Analysis, Modeling & Simulations, (202) 649-3141, Andrew.Varrieur@fhfa.gov; or Miriam Smolen, Associate General Counsel, Office of General Counsel, (202) 649-3182, Miriam.Smolen@fhfa.gov. These are not toll-free numbers. The mailing address is: Federal Housing Finance Agency, 400 Seventh Street, SW, Washington, D.C. 20219. 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 Additionally, the TDD 1-(800) number referenced in Rulemaking documents attached to this page is obsolete and the 7-1-1 number should be used.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

​SUMMARY: The Federal Housing Finance Agency (FHFA or the Agency) is proposing a new regulatory capital framework for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), which includes a new framework for risk-based capital requirements and two alternatives for an updated minimum leverage capital requirement. The risk-based framework would provide a granular assessment of credit risk specific to different mortgage loan categories, as well as market risk, operational risk, and going-concern buffer components. The proposed rule would maintain the statutory definitions of core capital and total capital.

FHFA has suspended the Enterprises' capital requirements since the beginning of conservatorship, and FHFA plans to continue this suspension while the Enterprises remain in conservatorship. Despite this suspension, FHFA believes it is appropriate to update the Agency's standards on Enterprise capital requirements to provide transparency to all stakeholders about FHFA's supervisory view on this topic. In addition, while the Enterprises are in conservatorship, FHFA will expect Fannie Mae and Freddie Mac to use assumptions about capital described in the rule's risk-based capital requirements in making pricing and other business decisions. Feedback on this proposed rule will also inform FHFA's views in evaluating Enterprise business decisions while the Enterprises remain in conservatorship.

DATES: Comments must be received on or before November 16, 2018.

Public Comments people-icon

Below are a compilation of public comments made on this publication.

81 items
CSV
Date First Name Last Name Organization Comment
Glen Bradford self What prevents FHFA from cramming accounting fraud down the throats of…View Comment
Email: globalspeculation@gmail.com
Attachment: N/A
Jack Mehoffer N/A FHFA needs to immediately stop the net worth sweep of Fannie Mae &…View Comment
Email: N/A
Attachment: N/A
Yin Choi N/A Fannie and Freddie are important organizations for secondary mortgage…View Comment
Email: N/A
Attachment: N/A
Michael Connelly N/A I have been robbed--I've owned Preferred shares since 2010 and have no…View Comment
Email: angus1842@aol.com
Attachment: N/A
John Hill N/A I hope that you'll cancel the senior preferred share payments (100%) a…View Comment
Email: N/A
Attachment: N/A
Trevor Blount N/A Recapitalization of these entities is imperative to moving forward tow…View Comment
Email: balloonsolo@yahoo.com
Attachment: N/A