Fannie Mae-No Politics (FNMA)

[bcde]

"That is very true... unfortunately all the recent "buzz" about the capital rule has been talk about imposing "bank like" capital standards for fannie and freddie.

Opponents have been pressing for them to be held to the same standard as banks."

It is against insurance industry regulations to impose fixed capital (core capital) requirements on insurance companies like FnF. Imposing fixed capital like core capital requirements hurts consumers with higher fees and puts investors and economy at greater risk.

"The insurance industry began using risk-based capital instead of fixed-capital standards in the 1990s after a string of insurance companies became insolvent in the 1980s and 1990s."

FHFA needs to understand that it is regulating insurance companies (FnF) and not banks. Banks are regulated by other regulators and not FHFA. Some one needs to make sure that Calabria understands the basics of insurance business before he starts with another loose talk.

If FHFA wants to impose fixed capital like core capital on FnF then FnF should be allowed to do all businesses that banks are allowed.