CREF Policy Update Nov. 30: FHFA Issues Final Rule Amending Enterprise Regulatory Capital Framework
FHFA Issues Final Rule Amending Enterprise Regulatory Capital Framework
On Tuesday, the Federal Housing Finance Agency (FHFA) published a final rule that would amend certain portions of the Enterprise Regulatory Capital Framework (ERCF) for Fannie Mae and Freddie Mac (the GSEs). The final rule includes modifications of certain provisions of the ERCF related to guarantees on commingled securities, multifamily mortgage exposures secured by properties with government subsidies, and derivatives and cleared transactions.
Why it matters: The capital rule continues to be used as a tool to manage the GSEs’ risk, which has been evident in recent policy decisions.
What’s next: The final rule is effective on April 1, 2024, with the exception of the amendments related to cleared and derivative transactions which are effective January 1, 2026. MBA will analyze the proposal and create a summary for members. MBA will continue to engage with FHFA on issues related to the ERCF and will advocate for changes to the framework that more accurately capture the risks posed to the GSEs, promote safety and soundness, and maintain a level playing field.
For more information, please contact Stephanie Milner at (202) 557-2747.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely single-family and commercial/multifamily programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars–which are complimentary to MBA members:
• Community Reinvestment Act: Final Regulations and What Banks Need to Know Now–Nov. 28
• Originating and Succeeding with High-Net-Worth Borrowers–Nov. 29
• Ten Things Your Company Must Do in 2024–Dec. 12
• California’s Corporate Climate Data Accountability Act–Dec. 14
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For any questions, please contact David Upbin at (202) 557-2931.
