Fannie Mae-No Politics (FNMA)

[Barron4664]

Kthompt,

I think neither HERA nor the safety and soundness law establishes risk based capital levels. Only critical and minimum capital levels ie 2.5% minimum level by statute. Stop conflating a regulation with the law. The current capital rule is a regulation. It is purely at the discretion of the Directorto set the risk based level once the APA requirements are satisfied. There is nothing stopping the Director from proposing to set a revised risk based level at say 2.6%, have a public hearing and comment period and publish the new rule in the federal register. Poof! Like magic. Then the capital classifications in HERA would be based on the statutory critical and minimum levels, and a new regulatory risk based capital of 2.6%. Not likely but that is how the gov works.

Obviously it is entirely possible to do what dajester wished for.