FHFA final rule requires Fannie Mae and Freddie Mac to submit annual capital plans

The Federal Housing Finance Administration (FHFA) last week published a final rule that requires the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, to submit annual capital plans to the agency for approval.

“The final rule provides the Enterprises with a stable regulatory framework that ensures the amount of capital held is commensurate with each of their risk profiles,” said FHFA Acting ​Director Sandra Thompson. “This is an important step in securing the safety and soundness of the Enterprises by actively monitoring and maintaining proper levels of capital throughout the economic cycle.”

Under the final rule, Fannie Mae and Freddie Mac will be required to submit their first capital plans to the FHFA by May 20, 2023, and mandates that the GSEs’ plans include:

• an assessment of the expected sources and uses of capital over the planning horizon;

 

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