The Federal Housing Finance Agency (FHFA) issued a final rule requiring Fannie Mae and Freddie Mac to submit annual capital plans to the FHFA for review and approval, a step toward capitalization and reform of Fannie and Freddie.

CUNA would support FHFA taking those steps, as its housing finance reform principles include strong capital requirements as part of the strong oversight and supervision of Fannie and Freddie.

Fannie and Freddie’s first capital plans are due May 20, 2023.

The plans must include:

• Planned capital actions over the next five years for internal scenarios and nine quarters for FHFA’s scenarios.
• An assessment of the expected sources and uses of capital over the planning horizon.
• Estimates of projected revenues, expenses, losses, reserves, and pro forma capital levels under a range of the Enterprise's internal scenarios, as well as under FHFA's scenarios.
• A description of all planned capital actions over the planning horizon.
• A discussion of how the Enterprise will, under expected and stressful conditions, maintain capital commensurate with the business risks and continue to serve the housing market.
• A discussion of any expected changes to the Enterprise's business plan that are likely to have a material impact on the Enterprise's capital adequacy or liquidity.