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Enterprise Capital Requirements

Open Date:
Open for comment 6/12/2018
Deadline:
All comments are due by 11/16/2018
Type:
Notice of Proposed Rulemaking
Number:
RIN-2590-AA95
Group:
 
Fannie Mae; Freddie Mac
Document Number:
2018–14255
CFR:
12 CFR Parts 1206, 1240, and 1750
CFR Description:
ASSESSMENTS; ENTERPRISE CAPITAL REQUIREMENTS
Federal Register Publish Date:
View Document:
 
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.  The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339.

Related Documents:
/SupervisionRegulation/Rules/RuleDocuments/2018_Capital_Extension_83_FR_38085_2018-16654.pdf|218.94 KB;/SupervisionRegulation/Rules/RuleDocuments/Link-to-Webinar_61918.pdf|34.72 KB;

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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.

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