It will be equal to 50% of the separate stability capital buffer each of the entities has. Also, a fixed leverage buffer equal to 1.5% of total assets will be replaced with a dynamic leverage buffer. In addition, a prudential floor of 10% on the risk weight assigned to any retained CRT exposure will be reduced to 5%. Under the plan’s final rule, Fannie Mae and Freddie Mac, which the FHFA oversees, will no longer have a requirement to apply an overall effectiveness adjustment to retained CRT exposures. ![]() The Federal Housing Finance Agency has finalized amendments to its enterprise regulatory capital framework, largely confirming proposed modifications that encourage the issuance of credit-risk transfers and make leverage ratios more dynamic.
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