OIG issues white paper on Enterprises' capital requirements

This story appeared in Bank Digest.                                  

Because of what it described as heightened public interest in the potential role of Fannie Mae and Freddie Mac (the Enterprises) in the future structure of the housing finance system, the FHFA's Office of Inspector General has issued a white paper to explain the current statutory and regulatory capital requirements for the Enterprises under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (suspended since the Enterprises entered conservatorship in September 2008), the Enterprises' reported capital shortfalls, and enhancements to capital requirements adopted by other financial regulators since 2008.                                   

The OIG said it takes no position on the structure a reformed housing finance system should take or whether Fannie Mae or Freddie Mac, in any form, should emerge from that reform effort. The white paper is intended only to inform the discussion.