Industry News

OFHEO wants to change Fannie’s, Freddie’s risk formulas

Regulator says equation assumes profits on some foreclosures
Published on Oct 12, 2007

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by CareyBot

Federal regulators say a formula used to calculate the amount of capital Fannie Mae and Freddie Mac must set aside to cover potential losses incorrectly assumes that the mortgage repurchasers will make a profit on some foreclosed loans. The Office ...