The new rule provides clarity about how much and what kind of capital Fannie and Freddie will need in order to exit conservatorships. But the likelihood of that kind of capital raise seems remote.

Now that the GSE “re-IPO” is presumed to be dead, are Fannie and Freddie facing a brain drain? In short, stock options matter.

Under the new guidelines, at least 50% of the multifamily loans that Fannie and Freddie purchase must be for affordable housing. That’s up from 37.5% under the prior caps.

This won’t be Ron Klain’s first dance at the White House. He has also served as chief of staff of two vice-presidents: Joe Biden (2009-2011) and Al Gore (1995-1999).

Fannie and Freddie combined to issue $266 billion of single-family MBS in October, the third monthly production record set this year. Many top sellers shifted a little more of their GSE business to Freddie. (Includes two data charts.)

Could investors sink their money into the GSEs only to have Congress convert them into public utilities and closely supervise their g-fees?

Former MBA president David Stevens believes the adverse market fee has nothing to do with COVID-induced risk. “It’s about building up the capital of Fannie and Freddie,” he said.

On the multifamily side of the aisle Fannie purchased 385,763 units in the low-income category. Freddie did even better: 495,451.

The senator flagged the risk of improper foreclosures if servicers begin the foreclosure process before a borrower has an opportunity to either extend forbearance or be evaluated for a modification.

Sheila Bair, when she served as FDIC chair, played a major role in strengthening capital standards through the Basel Accords.