Sumary of UPDATE 1-U.S. housing regulator proposes tweaks to capital rules for Fannie Mae, Freddie Mac:
- View of the Fannie Mae Federal National Mortgage Association building in Washington, U.S., November 24, 2020. REUTERS/Tom BrennerWASHINGTON, Sept 15 (Reuters) – The regulator overseeing housing giants Fannie Mae and Freddie Mac proposed on Wednesday changes to recently imposed capital and leverage requirements on the pair.
- The proposed rule from the Federal Housing Finance Agency would encourage the pair to shift more risk from taxpayers to private investors, while allowing them to support the housing market, the agency said.
- The proposal makes several changes to a capital rule first imposed on Fannie and Freddie in November.
- That rule envisioned Fannie and Freddie would have to raise billions of dollars in capital and leverage cushions, as part of the regulator’s bid to prepare them to exit from government conservatorship.