A summary of a proposed risk-based capital regulation for Fannie Mae and Freddie Mac, released on Friday, revealed that Fannie would not have met the requirement had it been in effect on test dates in 1996 and 1997.

The Office of Federal Housing Enterprise Oversight's summary, which was issued to Congress after the Office of Management and Budget cleared the regulation, said Fannie "would have been short" by $3.5 billion on the 1996 test date and nearly $3.7 billion on the 1997 date, "primarily because (Fannie's) asset-liability structure was less well hedged against interest rate risk than Freddie Mac's."

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