The Federal Housing Finance Agency (FHFA) has reached
another milestone as it tries to resolve the 12-year conservatorship of the
GSEs. On Wednesday it released a new regulatory capital framework for Fannie
Mae and Freddie Mac. The final rule, a revision of a proposal made in 2018,
reflects the 128 comments made on the 2018 proposal and well as other outreach
to stakeholders.

FHFA
says the final rule fulfills Congress’s mandate
in Housing and Economic Recovery Act of 2008 that FHFA establish risk-based
capital requirements for the GSEs. It is intended 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.

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