SAN FRANCISCO (Dow Jones) - Fannie Mae and Freddie Mac were adequately capitalized at the end of the third quarter, the regulator charged with overseeing the mortgage giants said Friday.

Fannie Mae (FNM), which has been rocked by accounting troubles in recent years, has to keep capital at 30% above a minimum level set by the Office of Federal Housing Enterprise Oversight.

As of Sept. 30, Fannie's minimum capital surplus was $9.1 billion , 32.7% above OFHEO's requirement, the agency said.

Freddie Mac (FRE) also has to meet similar standards. That company's minimum capital surplus stood at $12 billion at the end of the third quarter, 49% above the required level, OFHEO added.

Shares of Fannie Mae climbed 42 cents to $48.40 Friday, leaving them down more than 30% in 2005.

For its part, Freddie Mac advanced 9 cents to $65.29, leaving that stock about 11% lower this year. (END) Dow Jones Newswires 12-30-05 1405ET Copyright (c) 2005 Dow Jones & Company, Inc.