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.
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).
More than 31,000 seriously delinquent borrowers have yet to take advantage of forbearance, according to James Clyburn, chairman of the House Select Subcommittee on the Coronavirus Crisis.
The trade group reiterated that Fannie and Freddie should not be permitted to exit conservatorship until further systematic, wholesale and long-term reforms are made permanent.
Industry stakeholders said FHFA should find tremendous value in the CRT program as it reduces systemic risk by distributing risk across many investors and transactions.