FHFA issues guidance on liquidity risk management for Enterprises

This story appeared in Bank Digest.  

The Federal Housing Finance Agency has issued an advisory bulletin that communicates to Fannie Mae and Freddie Mac (the Enterprises) the agency's guidance for the management of liquidity risk. According to the bulletin, the FHFA expects the Enterprises to use liquidity metrics that are commensurate with their funds management strategies and provide a comprehensive view of their liquidity risk to ensure that sufficient funds are available at a reasonable cost to meet potential demands. The bulletin supersedes AB 2014-01.