Since the Federal Open Market Committee ostensibly began to let them run off on June 1, SOMA’s holdings of agency MBS have increased by $20 billion.

Beginning in March 2023, GSE servicers will have to retain fair lending data. FHFA set the requirement, citing lessons learned during the pandemic.

Sheila Bair, who resigned as Fannie board chair earlier this year, said the GSEs are ready to exit conservatorship.

The GSEs earned a combined $20.5 billion in theoretical net income under the severely adverse economic scenario of the 2022 stress tests. But those returns would vanish if they had to reserve for deferred tax assets.

The latest Freddie tender offer attracted less interest, with investors cashing in fewer certificates than for previous offers.

The former Credit Suisse executive will replace J. Douglass Watt, who is retiring in November.

The timing of credit-related benefits and losses affected the profits of Fannie and Freddie in the first half of 2022. (Includes data chart.)

The former FHFA director said, given the Federal Reserve’s commitment to fight inflation, home prices could fall by double digits in percentage terms over the next few years.

Conservative economist Douglas Holtz-Eakin said the Federal Reserve’s exit from the MBS market is helping drive up interest rates in the affordable housing space. The remedy, he said, is GSE reform.

During a recent congressional hearing, FHFA Director Sandra Thompson said the agency will conduct a 90-year lookback as well as a forward-looking analysis of the FHLBank system.