Risk-Based Capital
Risk-Based Capital
FOR FURTHER INFORMATION CONTACT: Patrick J. Lawler, Director of Policy Analysis and Chief Economist; David J. Pearl, Director, Research, Analysis and Capital Standards; or Gary L. Norton, Deputy General Counsel, Office of Federal Housing Enterprise Oversight, 1700 G Street, NW., Fourth Floor, Washington, DC 20552, telephone (202) 414-3800 (not a toll-free number). 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 Additionally, the TDD 1-(800) number referenced in Rulemaking documents attached to this page is obsolete and the 7-1-1 number should be used.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: On April 13, 1999, the Office of Federal Housing Enterprise Oversight (OFHEO) published a notice of proposed rulemaking entitled "Risk-Based Capital" in the Federal Register (64 FR 18083), the second of such proposals related to the development of a regulation to establish risk-based capital standards for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. An earlier proposal, published on June 11, 1996, (61 FR 29592) set forth a methodology for identifying the benchmark credit loss experience specified by the Federal Housing Enterprise Financial Safety and Soundness Act of 1992 (1992 Act) and proposed the use of a House Price Index developed by OFHEO in the development of the stress test required by the 1992 Act. The second proposal (NPR 2) set forth the specifications for the stress test, completing OFHEO's risk-based capital proposal.
OFHEO has received several requests for an extension of the August 11, 1999, deadline for comments on NPR 2 to permit adequate time for interested parties to replicate and analyze the stress test and to understand the test as applied to a variety of possible starting points. In recognition of the complexity that necessarily attends this method of setting capital standards, the importance of a careful evaluation of the implications of this precedent-setting approach, and the value of meaningful comment in the rulemaking process, OFHEO is extending the comment period for NPR 2 from August 11, 1999, to November 10, 1999. This will insure that all interested parties have ample opportunity to participate in the rulemaking process by providing meaningful comment on the various technical and policy issues involved in the development of the risk-based capital regulation.
DATES: The comment period is extended until November 10, 1999.