Fannie Mae, Freddie Mac Proposes Disclosure Rules From FHFA

The proposed rule “level playing field” with U.S. banking requirements.

The Federal Housing Finance Agency issued a notice of possible rulemaking adding additional public disclosure requirements for Fannie Mae and Freddie Mac. According to National Mortgage Professional, the FHFA said it is seeking comment on the proposed rule for the Enterprise Regulatory Capital Framework (ERCF), which would implement quarterly quantitative and qualitative disclosure requirements for the Enterprises related to: regulatory capital instruments, risk-weighted assets calculated under the ERCF’s standardized approach, and
risk management policies and procedures.

The deadline for the Enterprises to comply with the disclosure requirements outlined in the proposed rule is six months from publication of the final rule in the Federal Register.

In a document titled “Enterprise Capital Proposed Disclosure Amendments” posted on FHFA’s website, the agency states that the proposed rule “would implement standardized approach public disclosure requirements for the Enterprises that align with many of the public disclosure requirements for large banking organizations under the regulatory capital framework adopted by United States banking regulators.”

It continues, “… the proposed rule would complement the ECRF as it aims to ensure that each Enterprise operates in a safe and sound manner and is positioned to fulfill its statutory mission to provide stability and ongoing assistance to the secondary mortgage market across the economic cycle, in particular during periods of financial stress.”

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