Enterprise Regulatory Capital Framework

​SUMMARY: The Federal Housing Finance Agency (FHFA or the Agency) is seeking comments on a new regulatory capital framework for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac, and with Fannie Mae, each an Enterprise). The framework would consist of risk-based capital and leverage ratio requirements, with capital buffers on certain of these requirements. The risk-based capital requirements would include requirements for credit risk, market risk, and operational risk. The leverage ratio requirements would provide a credible backstop to the risk-based capital requirements. An Enterprise’s capital distributions and employment-based discretionary bonus payments would be subject to limits if the Enterprise does not maintain regulatory capital in excess of the prescribed capital buffer amounts. The proposed rule would also make conforming amendments to definitions in FHFA’s regulations for assessments and minimum capital and would also remove the Office of Federal Housing Enterprise Oversight’s (OFHEO) regulation on capital for the Enterprises.

DATES: FHFA invites interested parties to submit comments on the proposed rule on or before August 31, 2020.