Prior to being placed into conservatorship in the fall of 2008, it was common for Fannie Mae and Freddie Mac to offer guarantee fee discounts to their largest customers, a situation that put smaller lenders at a disadvantage.
On the revenue front, Fannie took in $5.63 billion during the quarter compared to $5.39 billion in 2Q19. The company booked hedging losses of $713 million during the period, down 5.4% sequentially.
It was the second quarter in a row that Freddie Mac was allowed to keep all of the money it earned as opposed to upstreaming retained capital in excess of $3.0 billion to the U.S. Treasury, the owner of its senior preferred shares.
“To foster competition that serves consumers, the new strategic plan and scorecard aim to provide a level playing field for all market participants such that success depends on running a better business rather than special regulatory and statutory advantages,” the FHFA states.
Directors at most federal agencies serve at the president’s will, and can be fired whenever the president wants. That's not the case with CFPB or FHFA.
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