FHFA Finalizes Public Disclosure Rules for Freddie Mac, Fannie Mae

Source: National Mortgage News (Subscription may be required.)

The Federal Housing Finance Agency issued its final rule regarding public disclosure requirements for Fannie Mae and Freddie Mac on corporate governance, risk management, capital structure and capital requirements, aligning the government-sponsored enterprises with what large banks already do.

The GSEs must issue their initial public disclosure reports under this final rule in the first quarter of 2023. This allows Fannie Mae and Freddie Mac to establish internal reporting and governance functions and will minimize duplicative reporting by aligning the schedule of annual qualitative disclosures with their annual 10-K filings with the Securities and Exchange Commission, the final rule said.

"By allowing market participants to assess key information about the Enterprises' risk profiles and associated levels of capital, this final rule will promote transparency and encourage sound risk management practices at the Enterprises," said Sandra Thompson, who was confirmed as FHFA director by the Senate Wednesday. "The rule published today will foster financial stability at the Enterprises and in the broader housing finance market."