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FHFA issues final rule on GSEs Enterprise Regulatory Capital Framework, re-proposes eligibility requirements
The Federal Housing Finance Agency (FHFA) Friday published a final rule to amend the Enterprise Regulatory Capital Framework (ERCF) by refining the prescribed leverage buffer amount (PLBA) and risk-based capital treatment of retained credit risk transfer (CRT) securitization framework for the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.
Of note, the final rule replaces both the fixed leverage buffer and the prudential floor on the risk weight and removes the requirement that an enterprise must apply an overall effectiveness adjustment to its retained CRT exposures.
NAFCU wrote to the FHFA in support of the proposed rule, commending the FHFA’s efforts to continue the use of the CRT framework to reduce the burden on American taxpayers.
In addition, the FHFA Thursday re-proposed updated eligibility requirements for the GSEs seller and servicers. The agency plans for this update to provide transparency regarding required capital and liquidity for sellers and servicers with different business models by considering risk exposure from contractual relationships with other sellers and services.
NAFCU will continue to advocate on behalf of the credit union industry and its members' best interests in the housing finance system.