Volume 4 - Number 16
August 12, 2011
Regulators Announce No Change in GNMA Risk Weights
The zero risk weight for Ginnie Mae mortgage-backed securities remains despite Standard & Poors recent lowering of the long-term rating of the U.S. government and federal agencies from AAA to AA+ and affirmation of the A-1+ short-term rating, according to federal regulators. The rating agency also removed both the short- and long-term ratings from CreditWatch, where they have been since July 14 with negative implications. On August 5, federal banking and credit union regulators announced that, for risk-based capital purposes, the risk weights for Treasury securities and securities guaranteed by...
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