OFHEO Finds Fannie Mae and Freddie Mac as Adequately Capitalized At End of 2007
March 12, 2008
Fannie Mae had a 9.3 percent surplus above the OFHEO-directed requirement, which is 30 percent above the required minimum capital. Freddie Mac’s surplus above the OFHEO-directed requirement was 10.0 percent. Both Enterprises’ percentages reflect significant increases over the depressed third quarter results due to the issuances of significant preferred stock during the fourth quarter to offset continuing market and credit-related losses. OFHEO considers this significant increase to the capital bases of both Enterprises prudent given both market conditions and the need to maintain sufficient capital.