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RBC to be More of an Issue, Especially for Freddie
The risk-based capital regulation of Fannie Mae and Freddie Mac by the Office of Federal Housing Enterprise Oversight took a step closer to relevance earlier this month when OFHEO issued its final rule for the loss severity calculations under the regulation. Under the final rule, Fannie and Freddie will have to change the way they recognize losses in their RBC calculation due to foreclosures, and the two GSEs will each face...
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