Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

Robert
I think the 25:1 risk-to-capital ratio —or said differently a 4% capital requirement—may have come from the private mortgage insurance (which is monoline) world.

The 25:1 ratio is the most common standard used by state regulators on monoline mortgage insurance companies. For example, MGIC is regulated to that standard by the Wisconsin OCI, and Radian is regulated to it in Pennsylvania.