WASHINGTON - Aida Alvarez, director of the Office of Federal Housing Enterprise Oversight, said this week that Fannie Mae and Freddie Mac were adequately capitalized on Dec. 31, 1994.

As of that date, Fannie Mae had core capital of $9.54 billion, exceeding its minimum capital requirement by $126 million.

Freddie Mac had core capital of $5.17 billion, exceeding its minimum capital requirement by $285 million.

By law, OFHEO must determine the capital adequacy of the two government- sponsored secondary market agencies.

OFHEO is currently at work on setting a risk-based capital requirement for Fannie Mae and Freddie Mac.

Under that standard, the agencies would be required to hold core capital, as well as an additional amount to absorb projected losses due to severe interest-rate and credit-risk conditions, and management and operations risk.

The capital requirement is based on a stress test that OFHEO is designing.

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