WASHINGTON—The Federal Housing Finance Agency (FHFA) issued a proposed rule that would require Fannie Mae and Freddie Mac, the government-sponsored enterprises’ (GSEs), to develop, maintain, and submit annual capital plans to the FHFA.
This requirement would help to protect taxpayers by ensuring that the GSEs properly assess their risks and maintain the appropriate level of capital, NAFCU noted.
Both Fannie and Freddie continue to operate under government conservatorship.
The proposed rule mandates that the GSEs capital plans include an assessment of the expected sources and uses of capital over the planning horizon, a description of all planned capital actions over the planning horizon, and more. The proposal also incorporates the determination of the stress capital buffer into the capital planning process and builds upon the existing supervisory expectation that the GSEs incorporate forward-looking projections of revenue and losses to monitor and maintain their internal capital adequacy.
The proposed rule has a 60-day comment period.