The agency has picked Houlihan Lokey Capital to help it identify any financial, regulatory or market risks in its path to take Fannie Mae and Freddie Mac out of conservatorship.

Analysts ponder whether the administration is committed to making key reforms to the GSEs in the midst of an election year.

Because it controls the senior class of stock in Fannie and Freddie, the Treasury is in the driver’s seat on recap and release. Former Freddie CEO Layton weighs the government’s options, using AIG as a blueprint.

The FHFA director said Fannie Mae and Freddie Mac may fully exit conservatorship as early as 2022. Meanwhile, on FHLBank membership to non-banks, Calabria said the agency will soon be putting out a request for information.

FHFA Director Mark Calabria said to exit conservatorship Fannie Mae and Freddie Mac will have to be adequately capitalized and make appropriate changes to their culture.

Freddie Mac CEO David Brickman said the GSE has changed, exponentially, in its ability to understand and analyze risk.

Based on current earnings, it will take until 4Q20 or 1Q21 for Fannie to accumulate its statutory minimum capital requirement. For Freddie, the wait will be a little longer — until the 2Q21.

To reach their statutory minimum capital levels, Fannie and Freddie may only need to accrue an extra $16 billion and $14 billion respectively, based on the size of their current capital buffer plus retained second-quarter earnings.

Not only is FHFA Director Mark Calabria homing in on a roadmap to end the conservatorship of Fannie and Freddie, he clearly believes the exit can take place before the two entities are fully capitalized.