Fannie-Freddie Watchdog Will Propose Fresh Capital Rule in 2020

Fannie Mae and Freddie Mac’s regulator will start from scratch in devising capital requirements for the mortgage giants, meaning it could take longer than some investors had hoped to free the companies from U.S. control.

Federal Housing Finance Agency Director Mark Calabria said Tuesday that he plans to re-propose a rule sometime next year dictating how much of a capital buffer Fannie and Freddie must have to ensure the companies can sustain a housing slump. The regulation is considered a crucial step in ending the government’s decade-long control of the companies. The announcement means Calabria won’t finalize a rule issued ...