U.S. housing finance regulator adopts new capital rule for Fannie Mae, Freddie Mac

  • 📰 Reuters
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 97%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Housing giants Fannie Mae and Freddie Mac would have to raise over $200 billion in new capital to fall in line with a rule finalized on Wednesday by their regulator.

The new rule from the Federal Housing Finance Agency places bank-like capital requirements on the pair, and was seen as a key step in preparing the two to eventually leave government control and return to operating as private companies.

The rule is “substantively similar” to one proposed by the FHFA back in May, the agency said. It establishes new capital and leverage requirements for the pair, as well as buffers that would allow the enterprises to continue guaranteeing mortgages even in an economic downturn. Fannie and Freddie guarantee roughly half of all the nation’s mortgages.

All told, the final rule anticipates the pair would need roughly $283 billion in total capital. That is up by about $40 billion from the proposal, due in part to growing portfolios at Fannie and Freddie and also due to a ramped-up requirement for how much risk-based capital they should hold.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

WE NEED HELP! Covid is rough rn. I’m living off about a 1/3 of what I used to make working weekly. I’m lucky enough to be back home with my dad but many aren’t. Americans are going broke without aid. PLEASE RETWEET so Congress can see! I’m only one guy but WeNeedHelp

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines