Posted To: MND NewsWire

In November, the Federal Housing Finance Agency (FHFA) released a new regulatory capital framework for Fannie Mae and Freddie Mac (the GSEs). At the time FHFA said the final rule fulfills Congress’s mandate in the Housing and Economic Recovery Act of 2008 that FHFA establish risk-based capital requirements for the GSEs to ensure their safety and soundness by increasing the quantity and quality of their regulatory capital and reducing the pro-cyclicality of the aggregate capital requirements. This week the agency submitted for comments a companion rule regarding liquidity requirements for the two companies. The agency says its rule is designed to ensure that the GSEs are a source of strength for the mortgage market during downturns in the economy, and to incentivize them to issue an appropriate…(read more)

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Source: Mortgage News Daily