[Federal Register Volume 64, Number 113 (Monday, June 14, 1999)]
[Proposed Rules]
[Page 31756]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15002]


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DEPARTMENT OF HOUSING AND URBAN DVELOPMENT

Office of Federal Housing Enterprise Oversight

12 CFR Part 1750

RIN 2550-AA02


Risk-Based Capital

AGENCY: Office of Federal Housing Enterprise Oversight, HUD.

ACTION: Proposed rule; extension of public comment period for the 
second notice of proposed rulemaking.

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SUMMARY: On April 13, 1999, the Office of Federal Housing Enterprise 
Oversight (OFHEO) published a notice of proposed rulemaking entitled 
''Risk-Based Capital'' in the Federal Register (64 FR 18083), the 
second of such proposals related to the development of a regulation to 
establish risk-based capital standards for the Federal National 
Mortgage Association and the Federal Home Loan Mortgage Corporation. An 
earlier proposal, published on June 11, 1996, (61 FR 29592) set forth a 
methodology for identifying the benchmark credit loss experience 
specified by the Federal Housing Enterprise Financial Safety and 
Soundness Act of 1992 (1992 Act) and proposed the use of a House Price 
Index developed by OFHEO in the development of the stress test required 
by the 1992 Act. The second proposal (NPR 2) set forth the 
specifications for the stress test, completing OFHEO's risk-based 
capital proposal.
    OFHEO has received several requests for an extension of the August 
11, l999, deadline for comments on NPR 2 to permit adequate time for 
interested parties to replicate and analyze the stress test and to 
understand the test as applied to a variety of possible starting 
points. In recognition of the complexity that necessarily attends this 
method of setting capital standards, the importance of a careful 
evaluation of the implications of this precedent-setting approach, and 
the value of meaningful comment in the rulemaking process, OFHEO is 
extending the comment period for NPR 2 from August 11, 1999, to 
November 10, l999. This will insure that all interested parties have 
ample opportunity to participate in the rulemaking process by providing 
meaningful comment on the various technical and policy issues involved 
in the development of the risk-based capital regulation.

DATES: The comment period is extended until November 10, l999.

ADDRESSES: Send written comments to Anne E. Dewey, General Counsel, 
Office of General Counsel, Office of Federal Housing Enterprise 
Oversight, 1700 G Street, NW., Fourth Floor, Washington, DC 20552. 
Written comments may also be sent by electronic mail to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Patrick J. Lawler, Director of Policy 
Analysis and Chief Economist; David J. Pearl, Director, Research, 
Analysis and Capital Standards; or Gary L. Norton, Deputy General 
Counsel, Office of Federal Housing Enterprise Oversight, 1700 G Street, 
NW., Fourth Floor, Washington, DC 20552, telephone (202) 414-3800 (not 
a toll-free number). The telephone number for the Telecommunications 
Device for the Deaf is (800) 877-8339.

    Dated: June 9, 1999.
Mark A. Kinsey,
Acting Director, Office of Federal Housing Enterprise Oversight.
[FR Doc. 99-15002 Filed 6-11-99; 8:45 am]
BILLING CODE 4220-01-P