Office of Federal Housing Enterprise Oversight, HUD.
This document contains corrections to Part 1750 of the Code of Federal Regulations for the regulation on the process used to determine the capital classification of the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae).
April 19, 2002.Start Further Info Start Printed Page 19322
FOR FURTHER INFORMATION CONTACT:
Marvin L. Shaw, Senior Counsel, telephone (202) 414-3751 (not a toll-free number), Office of Federal Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW., Washington, DC 20552. The telephone number for the Telecommunications Device for the Deaf is (800) 877-8339.End Further Info End Preamble Start Supplemental Information
OFHEO published a final regulation setting forth a risk-based capital stress test on September 13, 2001, which formed the basis for determining the risk-based capital requirement for the Federally sponsored housing enterprises—Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises). Subsequently, OFHEO published a final regulation that referenced the risk-based capital regulation with respect to the capital classification process. There are two errors in the Code of Federal Regulations that need to be corrected: one section needs to be removed and a second section needs to be revised to reflect the appropriate cross reference.
Need for Correction
As published, the final regulations contained an error which may be confusing and therefore needs to be corrected.Start List of Subjects
List of Subjects in 12 CFR Part 1750
- Capital classification
- Risk-based capital
Accordingly, 12 CFR part 1750 is corrected by making the following correcting amendments:End Amendment Part Start Part
PART 1750—CAPITALEnd Part Start Amendment Part
1. The authority citation for part 1750 continues to read as follows:End Amendment Part
2. Remove § 1750.5 of subpart A.End Amendment Part Start Amendment Part
3. Revise paragraph (c) of § 1750.12 to read as follows:End Amendment Part
(c) When an Enterprise contemplates entering a new activity, as the term is defined in section 3.11 of Appendix A to this subpart, the Enterprise shall notify the Director as soon as possible while the transaction or activity is under consideration, but in no event later than 5 calendar days after settlement or closing. The Enterprises shall provide to the Director such information regarding the activity as the Director may require to determine a stress test treatment. OFHEO will inform the Enterprise as soon as possible thereafter of the proposed stress test treatment of the new activity. In addition, the notice of proposed capital classification required by § 1777.21 of this chapter will inform the Enterprise of the capital treatment of such new activity used in the determination of the risk-based capital requirement.
Dated: April 15, 2002.
Armando Falcon, Jr.,
Director, Office of Federal Housing Enterprise Oversight.
[FR Doc. 02-9608 Filed 4-18-02; 8:45 am]
BILLING CODE 4220-01-U