Other Changes:
The proposed rule also makes a number of more minor changes to the ERCF that will affect the capital requirements of the Enterprises. These alterations are estimated to reduce CET1 capital requirements by $200 million. The new rules will:
• Require the Enterprises to assign an original credit score of 680 to single-family mortgage exposures without a permissible credit score at origination, rather than 600;
• Introduce a 20% risk weight for guarantee assets;
• Expand the definition of mortgage servicing assets to include servicing rights on mortgage loans owned by anyone, including the Enterprise;
• Delay the first application of the single-family countercyclical adjustment on new originations to coincide with the first update to the property values associated with those single-family mortgage exposures;
• Explicitly permit eligible time-based call options in the credit risk transfer (CRT) operational criteria;
• Amend the risk weights for interest-only mortgage-backed securities to 0%, 20% and 100%, conditional on whether the security was issued by the Enterprise, the other Enterprise or a non-Enterprise entity, respectively;
• Clarify the calculation of the stability capital buffer when an increase and a decrease might be applied concurrently; and
• Extend the compliance date for the advanced approaches to Jan. 1, 2028.