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HPC Releases Statement on Proposed Changes to the Enterprise Regulatory Capital Framework

Washington, D.C. – The Housing Policy Council (HPC) released the following statement from HPC President Ed DeMarco on the Federal Housing Finance Agency’s (FHFA) notice of proposed rulemaking to amend the Enterprise Regulatory Capital Framework:

“The Housing Policy Council welcomes FHFA’s proposed changes to the Enterprise Regulatory Capital Framework. While we support retaining the structure and many of the good components of the rule FHFA finalized in December 2020, the new proposal fixes the few, but key, flaws in that rule. Consistent with the recommendations HPC and others made in comment lettersto FHFA last year, the new proposal addresses the excessive leverage buffer and adjusts the specific provisions in the rule that penalized credit risk transfers, rendering them uneconomic in many cases. A rigorous capital framework that encourages risk transfer will reduce risk to the GSEs and to the financial system, enabling lenders to serve the needs of homebuyers in all market conditions. We look forward to carefully evaluating the proposed revisions and providing FHFA feedback.”


See a pdf version of our press release here.


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