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A group of 14 housing and civil rights groups is calling on the Federal Housing Finance Agency (FHFA) to revise its Enterprise Regulatory Capital Framework for Fannie Mae and Freddie Mac.

“The proposed capital rule conflicts with the GSEs’ [government-sponsored enterprises’] charter mission by treating the GSEs as banks. As a result of this approach, the rule would unnecessarily increase the cost of mortgage credit with a disproportionate impact on low- to moderate-income borrowers and borrowers of color,” the letter states.

The group urges FHFA to revise the proposed rulemaking to “comply more appropriately with the GSEs’ mission” and offered the following recommendations:

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