CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » FHFA proposes Enterprise Regulatory Capital Framework amendments
Policy & Issues

FHFA proposes Enterprise Regulatory Capital Framework amendments

September 20, 2021
FHFA

The Federal Housing Finance Agency (FHFA) last week released further proposed amendments to the regulatory capital framework rule for the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. Additional details can be found on CUNA’s Removing Barriers Blog.

The proposed amendments are intended to remove inappropriate capital disincentives to the Enterprises to transfer risk. The proposed amendments would:

  • Replace the fixed 1.5% prescribed leverage buffer amount (PLBA) with a dynamic PLBA equal to 50% of the Enterprise's stability capital buffer.
  • Lower the prudential floor of 10% on the risk weight assigned to any retained credit risk transfer (CRT) exposure to 5%.
  • Remove the requirement to apply an overall effectiveness adjustment to retained CRT exposures in accordance with the ERCF's securitization framework.

According to the FHFA, the changes should better reflect the risks inherent in the GSEs’ business models and encourage them to distribute acquired credit risk to private investors rather than to buy and hold that risk.

KEYWORDS FHFA
Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • CFPB issues CUNA-opposed proposal on credit card late fees

  • Auto lending report shows significant credit union member savings

  • 2023 Credit Union Hero of the Year voting open

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us