Even though the two companies have paid Treasury about $250 billion over seven years, most of that was interest. They may still owe nearly $118 billion in principal.

A lawsuit claimed Fannie is “governmental body” because it was created by Congress and is currently under conservatorship.

FHFA Director Mark Calabria hopes to hire an advisor by next month. He said Fannie and Freddie will need to hire advisors too to help through the recap-and-release process or any possible public offering.

Industry watchers expect David Lowman to join one of the rising fintech firms after he leaves the GSE by the end of the month. Donna Corley will take over as interim EVP.

Fannie and Freddie will be able to retain all their second-quarter profits, rather than forward them to Treasury. Combined, the GSEs will add $5.2 billion to their net worth this month.

SOFR-linked debt is vulnerable to much higher rate volatility than those referencing LIBOR. This risk was highlighted last month when surging repo rates sent SOFR briefly to a record 5.25%.

Freddie elects former SEC Commissioner Kathleen Casey to the board; Fannie executes sixth credit insurance risk transfer deal of 2019.

The shareholders want the SCOTUS to reverse the sweep. They argue that if the FHFA is unconstitutional, then all of its actions were illegal.

After a billion-dollar event, lenders are significantly more likely to increase the share of mortgages they securitize.

FHFA’s Calabria said capital rules for Fannie and Freddie don’t take place in a vacuum; they influence other financial decisions as well.