The Office of Federal Housing Enterprise Oversight said last week that Fannie Mae and Freddie Mac were "adequately capitalized" as of Sept. 30.

The oversight office, which monitors the fiscal soundness of the two government-sponsored mortgage agencies, said:

*Fannie Mae's core capital of $12.27 billion exceeded its minimum capital requirement by $1.15 billion.

*Freddie Mac's core capital of $6.54 billion exceeded its minimum capital requirement by $264 million.

Minimum capital is the amount each mortgage agency needs to protect against broad categories of business risk.

The oversight office is developing a risk-based capital requirement to cover projected losses from severe interest rate and credit risk conditions, as well as management and operations risk.

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