[Federal Register Volume 67, Number 76 (Friday, April 19, 2002)]
[Rules and Regulations]
[Pages 19321-19322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9608]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight

12 CFR Part 1750


Risk-Based Capital

AGENCY: Office of Federal Housing Enterprise Oversight, HUD.

ACTION: Correcting amendments.

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SUMMARY: 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).

EFFECTIVE DATE: April 19, 2002.

[[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.

SUPPLEMENTARY INFORMATION:

Background

    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).\1\ Subsequently, OFHEO published a 
final regulation that referenced the risk-based capital regulation with 
respect to the capital classification process.\2\ 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.
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    \1\ Risk-based Capital, 66 FR 47730 (September 13, 2001).
    \2\ Prompt Supervisory Response and Corrective Action, 67 FR 
3587 (January 25, 2002).
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Need for Correction

    As published, the final regulations contained an error which may be 
confusing and therefore needs to be corrected.

List of Subjects in 12 CFR Part 1750

    Capital classification, Mortgages, Risk-based capital.

    Accordingly, 12 CFR part 1750 is corrected by making the following 
correcting amendments:

PART 1750--CAPITAL

    1. The authority citation for part 1750 continues to read as 
follows:

    Authority: 12 U.S.C. 4513, 4514, 4611, 4612, 4614, 4618.


Sec. 1750.5  [Removed].

    2. Remove Sec. 1750.5 of subpart A.

    3. Revise paragraph (c) of Sec. 1750.12 to read as follows:


Sec. 1750.12  Procedure and timing.

* * * * *
    (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 Sec. 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