FHFA proposes GSE liquidity requirements

The Federal Housing Finance Agency (FHFA) Thursday issued a proposed rulemaking to implement minimum liquidity and funding requirements for the government-sponsored enterprises (GSEs), daily management reporting of the GSEs’ liquidity positions, monthly public disclosure reporting requirements, and more.

In a release, FHFA Director Dr. Mark Calabria said this proposal is “a companion to the new capital rule [that] will better ensure that the Enterprises are positioned to fulfill their countercyclical mission.” The agency released the GSEs’ final capital rule last month.

“Requiring the Enterprises to have enough liquid assets to continue supporting the mortgage market during times of severe stress protects taxpayers and the housing market,” he added.

The proposed rule has four liquidity requirements, two cash-flow based requirements and two long-term liquidity and funding requirements.

 

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