With Fannie already over the PSPA cap on non-owner-occupied loan volume, lenders may have to dramatically reduce their delivery of second-home and investor-property mortgages.
Although most housing advocates applauded the Supreme Court’s Collins decision, shareholders argue the justices ignored key points. Nevertheless, legal experts say there’s little chance the plaintiffs will prevail when the case returns to circuit court.
Craig Phillips, senior counselor to Treasury Secretary Steven Mnuchin, recounts the Trump administration’s difficulties in ending the net worth sweep and the conservatorships.
A recent report from the Congressional Research Service suggests that it may be difficult to simultaneously raise the capital requirements for the GSEs and shrink their footprint, and still expect them to attract equity investors.