FHFA Proposed Rulemaking Adds Public Disclosure Requirements for GSE Regulatory Capital Framework

The Federal Housing Finance Agency last week issued a notice of proposed rulemaking that would introduce additional public disclosure requirements to the Enterprise Regulatory Capital Framework for Fannie Mae and Freddie Mac.

The proposed rule would implement quarterly quantitative and qualitative disclosure requirements for GSEs related to regulatory capital instruments, risk-weighted assets calculated under the ERCF’s standardized approach and risk management policies and procedures.

“These additional public disclosure requirements are intended to promote market discipline and prudent risk management practices at the Enterprises,” said FHFA Acting Director Sandra L. Thompson. “These changes also will provide market participants with more information to assess an Enterprise’s risks and capital adequacy. In addition, the proposed changes increase the transparency of the safety and soundness of the Enterprises while decreasing risk to the U.S. taxpayers.”

The deadline for the Enterprises to comply with the disclosure requirements outlined in the proposed rule is six months from publication of the final rule in the Federal Register.

The Notice of Proposed Rulemaking can be found here.