FHFA Director Mark Calabria hopes to hire an advisor by next month. He said Fannie and Freddie will need to hire advisors too to help through the recap-and-release process or any possible public offering.

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.

The agency is looking for a financial advisor to help in its efforts to remove the government-sponsored enterprises from conservatorship.

The new capital buffer deal has a limited life. At current earnings rates, Fannie will reach the $25 billion buffer cap in about two years, Freddie a little later.

Analyst Richard Bove thinks the new net worth sweep agreement is just a gimmick because the liquidation preference on Treasury’s preferred stock will offset any increase in the GSEs’ capital buffers.

FHFA’s Calabria said capital rules for Fannie and Freddie don’t take place in a vacuum; they influence other financial decisions as well.

A lack of consistency in terminology used by the GSEs makes it impossible for the FHFA to assess the cybersecurity risks they face.

If all goes to plan, Fannie Mae and Freddie Mac will retain most of their earnings beginning with the third quarter.

A $1 billion line of credit might be small potatoes by GSE standards, but it’s likely to elicit whistles among private lenders.