July 03, 2017

Federal Housing Finance Agency (FHFA) is proposing to adopt, with amendments, the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the federal home loan banks. The proposed rule would carry over most of the existing regulations without material change, but would substantively revise the credit risk component of the risk-based capital requirement as well as the limitations on extensions of unsecured credit.

The proposed rule would also revise the percentages used in the tables to calculate the credit risk capital charges for advances and non-mortgage assets. Additionally, FHFA would retain the percentages used in the existing table to calculate the capital charges for mortgage-related assets, although it intends to address the appropriate methodology for determining the credit risk capital charges for residential mortgage assets, as part of a subsequent rulemaking. FHFA is proposing to amend part 1277 of its regulations by adopting, with some revisions, the capital requirement regulations of the Finance Board, which are located at 12 CFR part 932. Most of the provisions of the Finance Board regulations would be adopted without change or with only minor conforming changes. The proposed rule would make significant revisions to two provisions of the Finance Board regulations—Section 932.4 regarding credit risk capital requirements and Section 932.9 regarding limits on unsecured credit exposures—principally by removing requirements that are based on Nationally Recognized Statistical Rating Organization credit ratings. 

 

Related Link: Notice

Comment Due Date: September 01, 2017

Keywords: FHFA, FED, Banking, Americas, United States of America, Capital Requirements, Mortgage Lending

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