Important Press Release
Comment by Larry Cragun: Our Fannie Mae and Freddie Mac entitities are the reason we have low interest rates in this country. If your loan is going to be sold to another investor, the rate will be higher. Fannie & Freddie standards are more difficult, the risk lower, and the rate to you lower.
At this time, we seem to be a nation that loves polarization. Find a scandal and jump on it. It takes place in our lives in so many ways.
I felt this positive report on should be noticed by you, these are important institutions.
WASHINGTON, D.C.
€” James B. Lockhart, Director of the Office of Federal Housing Enterprise Oversight (OFHEO), safety and soundness regulator for Fannie Mae and Freddie Mac (the Enterprises), classified Fannie Mae and Freddie Mac as adequately capitalized as of March 31, 2006.
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 requires the OFHEO Director to determine the capital level and classification of the Enterprises not less than quarterly, and to report the results to Congress. OFHEO classifies the Enterprises as adequately capitalized, undercapitalized, significantly undercapitalized or critically undercapitalized. The Enterprises are required by Federal statute to meet both minimum and risk-based capital standards to be classified as adequately capitalized.
Given the ongoing operational weaknesses at both Enterprises, Director Lockhart is re-emphasizing the importance for the Enterprises to maintain capital at least 30% above the statutory minimum capital requirement. As a result, OFHEO is now disclosing the Enterprise’s minimum capital surplus over the OFHEO-directed requirement versus the statutory requirement previously
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Larry Cragun
