Aside from g-fee pricing, most of the ways the GSEs could engage in volume discounting would take place in the secondary market. That means they’re not really violating regulations.
PennyMac wants out of its servicing platform marriage with vendor Black Knight. As might be expected, lawsuits and nasty allegations are the order of the day. The two have been working together for 10-plus years.
As the GSE recap-and-release avalanche continues, there’s increasing chatter in the market that Treasury is open to a legal settlement with Fannie/Freddie shareholders. A crazy idea? Maybe not.
The Supreme Court has agreed to review a case challenging the constitutionality of the CFPB. Regardless of its decision, it likely will not be the end of the controversy surrounding the bureau’s leadership structure.
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.
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.
Even though the Fifth Circuit Court of Appeals agreed that the structure of the FHFA is unconstitutional, GSE shareholders have petitioned for a Supreme Court review of their case.
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