CSS, a joint venture of Fannie Mae and Freddie Mac, has been on something of a hiring spree of late. In 2020, at the direction of the Federal Housing Finance Agency, the company increased the size of the board by three members, the last two of which were picked early this year. In December, CSS also picked a new chief technology officer.

Treasury, which administers the capital magnet fund, uses the money to provide competitive grants to community development financial institutions and nonprofit housing organizations.

The industry veteran joins a growing list of highly regarded members of GSE leadership who have recently decamped for greener pastures in private enterprise.

At Freddie Mac alone, 62 sellers topped the $1.5 billion marker for cash sales in 2020.

Freddie Mac posted a $7.3 billion profit in 2020, including net income of $2.9 billion in the fourth quarter.

Mortgage applications fell by 4%, with declines in requests for both refinances and purchase mortgages.

Mortgage-backed security issuance by the GSEs offers one metric to feed into the crystal ball.

Coronavirus-related forbearance on mortgages serviced for the GSEs can extend three months past the initial 12-month deadline, according to the FHFA.

Rather than ending the net worth sweep outright and agreeing to write off some of its preferred shares, Treasury is essentially simply allowing Fannie Mae and Freddie Mac to continue their practice of retaining earnings.