The hedge fund billionaire predicts Treasury will write off its senior preferred shares in the GSEs and exercise its warrants for 80% of their common stock.
A report by the non-partisan Congressional Budget Office concludes that Fannie Mae and Freddie Mac are more likely to hold successful public stock offerings now than when Trump first took office in 2020.
Though many financial companies have significant concerns about actions by the CFPB, the reforms brought in by the bureau are generally preferred, according to industry stakeholders.
The final rule is at risk of being overturned by the Congressional Review Act under the incoming Trump administration. Trade groups representing banks have also filed a lawsuit against the final rule.
Automatically increasing the caps for loans to be eligible for sale to the GSEs increases access to mortgage credit, but at the expense of increasing home prices.
Going by Trump’s first term, the CFPB is expected to continue to regulate by enforcement, but isn’t likely to expand its jurisdiction into questionable areas.
While major rulemakings will pause until a new presidential administration takes over, work will continue on proposed rules, according to regulatory agency leaders.
The agency heads at the FDIC, OCC and Federal Reserve said they don't foresee any major rulemakings moving forward before the next administration takes over.
Old industry hands like Mike Calhoun of CRL and former FHFA acting Director Ed Demarco say getting the GSEs out of conservatorship might be more complicated than the Trump administration believes.