Fannie-Freddie Poised to Get Less Stringent Capital Requirements
- FHFA proposal targets credit-risk transfer securities
- Regulator wants to boost capital relief for issuing assets
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Fannie Mae and Freddie Mac are poised to get less stringent capital requirements, with their regulator planning a revamp of tough rules approved at the end of the Trump administration.
In a Wednesday statement, the Federal Housing Finance Agency said it’s proposing amendments to the November rules that would specifically target so-called credit risk transfer securities -- assets that transfer the risk of mortgages defaulting to private investors. Under the overhaul, Fannie and Freddie would get more capital relief when issuing such securities.