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Home » News » FHFA Director Watt is Concerned About Disappearing GSE Capital. Will He Pull the Recapitalization Lever?
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FHFA Director Watt is Concerned About Disappearing GSE Capital. Will He Pull the Recapitalization Lever?

February 25, 2016
The odds are currently zero that Congress will find a legislative solution to the future of Fannie Mae and Freddie Mac this year, which is causing anxiety for the man charged with being both conservator and regulator to the government-sponsored enterprises: Mel Watt, director of the Federal Housing Finance Agency. Moreover, there is a growing concern among mortgage bankers that severe interest swings to the downside could cause a large net loss at Freddie in the first quarter of this year, a loss so large it will force the GSE to ask the U.S. Treasury for a draw on taxpayer funds. And it will happen...
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