New Activities Treatments

Pursuant to Section 3.11.3 of the Risk-Based Capital rule, OFHEO has incorporated the treatments described below into the Risk-Based Capital stress test.  The effective dates of these treatments are shown in parenthesis next to the activity or instrument name.  In earlier classifications affected by these new activities and instruments, OFHEO has applied conservative interim treatments.  OFHEO invited public comment on these treatments.

• Futures and Options On Futures (effective 9/30/02) 
• Swaptions (effective 9/30/02)
• Reverse Mortgages (effective 6/30/03)
• Consumer Price Index (CPI) Coupon Linked Instruments (effective 9/30/04)
• Split-Rate ARM Loans (effective 6/30/05)
• Pre-refunded Tax-Exempt Municipal Bonds (effective 6/30/05)