Former FHFA Acting Director Ed DeMarco and the American Bankers Association have endorsed releasing the GSEs from conservatorship. Industry observers aren’t optimistic about any moves in the near term.

FHFA’s proposed revisions to the enterprise regulatory capital framework prompted feedback from Fannie Mae and Freddie Mac. The GSEs support various aspects of the proposal while seeking some changes.

The announcement comes on the heels of a potential downgrade of the U.S. government amid a debate on the debt ceiling.

Spreads on the latest CRT from Fannie were wider than on the deal the GSE issued in April 2022.

The rescinded fee would have added $1,250 in cost to the purchase of a $300,000 home. Or, borrowers could have elected to pay an extra $24.75 per month on their mortgage.

Timing differences in their provisions for loan losses allowed Fannie’s first-quarter profits to more than double while Freddie’s climbed just 13.2% compared with the fourth quarter. (Includes data chart.)

The ranking member of the Senate Banking Committee has demanded that the FHFA director meet with committee staff to prove the GSEs’ new pricing grids don’t amount to more cross-subsidy.

Concerns voiced by Senate Democrats appear to have prompted an FHFA review of how the GSEs sell their nonperforming and reperforming loans.

Plaintiffs claim former FHFA Director Mel Watt “thwarted” former President Trump’s plan to end the net worth sweep. The government says, “What plan?”

Fannie and Freddie modified their policies to support lower-income borrowers by allowing greater use of downpayment assistance and equity-sharing programs.