Fannie Mae-No Politics (FNMA)

[familymang]

Would you look at that... Tim Howard agreed he made a mistake on his recommendation (like I pointed out in the previous post) and said I was correct. Maybe you can learn a thing or two from him after all.

"jtimothyhoward
June 5, 2023 at 8:14 pm

Yes, you’re absolutely correct on the prescribed leverage buffer; I’d forgotten about the amendment that was made last year (since it had so little effect on the companies’ overall capital requirement). The important thing is to get the leverage ratio down to 2.5 percent of total assets, and then get the revised risk-based standard below that level unless the companies are taking higher-than normal credit risk. I’ll amend the post to remove the reference to “1.5 percent”– and just say eliminate the prescribed leverage buffer–and get a corrected version of my response to FHFA (although I don’t think it’s made any of the responses to this RFI publicly available yet). Thank you for pointing this out."