Tidying up its rulebook ahead of a possible change to the conservatorship or – a lot less likely – legislation, FHFA today issued new liquidity-risk management standards for Fannie Mae and Freddie Mac.  Although described as similar to relevant bank regulation, the FHFA approach is principles-based.  Its impact thus will depend on what changes Fannie and Freddie undertake and how well FHFA enforces its liquidity edicts.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.