Industry News

Fannie, Freddie ‘adequately capitalized’

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Fannie Mae and Freddie Mac were "adequately capitalized" as of year-end 2003, according to a statement issued today by the Office of Federal Housing Enterprise Oversight, the safety and soundness regulator of the nation's two secondary mortgage market corporations. Federal law requires OFHEO to determine Freddie Mac's and Fannie Mae's capital levels and classifications and report its findings to Congress at least quarterly. OFHEO classifies the two corporations as "adequately capitalized," "undercapitalized," "significantly undercapitalized" or "critically undercapitalized." Federal law requires the corporations to meet both minimum and risk-based capital standards to be classified as "adequately capitalized." Freddie Mac's risk-based capital requirement at year-end was slightly more than $5 billion, according to OFHEO's calculations. The corporation's total capital of more than $33 billion on that date exceeded that requirement by approximately $28 billion. Freddie Mac's minimum ...