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FHFA Proposes Changes to Capital Rule for Fannie and Freddie

The Federal Housing Finance Agency has proposed a rule to amend the Enterprise Regulatory Capital Framework for Fannie Mae and Freddie Mac. So reports Seeking Alpha.

FHFAThe proposed changes would “refine” the prescribed leverage buffer amount and the capital treatment of credit risk transfers, according to a press release.

Acting Director Sandra Thompson said in a statement, “The proposed requirements provide the Enterprises with the necessary incentives to support sustainable lending initiatives by transferring a significant amount of credit risk away from the taxpayers to private investors that are better positioned to take this risk.”

Read the full article from Seeking Alpha.

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