Annual Report to Congress - 1998

​The report outlines OFHEO’s activities in 1997 and early 1998. Chapter 1 details work on the development of risk-based capital regulation that effectively captures both the credit risk and interest rate risk exposures to the Enterprises. Chapter 2 describes the details and fundamental principles of our new examination program. Chapter 3 reports the results and conclusions of our information technology and internal audit examinations of the Enterprises. Finally, Chapter 4 analyzes developments in the primary and secondary mortgage markets as well as the performance of the Enterprises in this favorable environment.