New Activities Treatment

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 invites public comment on these permanent treatments.

· Futures and Options On Futures (effective 9/30/02)

· Swaptions (effective 9/30/02)

· Reverse Mortgages (effective 6/30/03)

To send comments on these treatments send email to: new.activities.comments@ofheo.gov.