FHFA unveils final rule on ERCF changes

Moreover, the public reports include quarterly quantitative and annual qualitative disclosures related to risk management, corporate governance, capital structure, and capital requirements and buffers under the standardized approach.

“By allowing market participants to assess key information about the enterprises’ risk profiles and associated levels of capital, this final rule will promote transparency and encourage sound risk management practices at the enterprises,” said FHFA head Sandra Thompson.

Thompson, who was confirmed by the Senate yesterday as director of the agency, said the rule ultimately aims to “foster financial stability at the enterprises and in the broader housing finance market.”

However, the FHFA noted that the enhanced public disclosures could be costly for Fannie Mae and Freddie Mac.