Mortgage Industry Urges Elimination of Risk-Based Capital Charge for GSE MBS; FHLBanks Want Equal Treatment
December 12, 2008
After taking over Fannie Mae and Freddie Mac, federal regulators have proposed cutting in half bank risk-based capital requirements for MBS issued by the two government-sponsored enterprises. But the mortgage industry is calling for the regulators to go a step further and eliminate them entirely to be consistent with the regulatory treatment for Ginnie Mae securities...