The GSEs were already quietly adding MBS to their portfolios before Trump directed them to purchase $200 billion more. Investors may now be paying a price for that intervention.

Some critics argue that forcing Fannie Mae and Freddie Mac to intervene in the mortgage-backed securities market may indicate their recapitalization and release from conservatorship is now on hold.

The administration’s firing of FHFA’s acting inspector general comes on the heels of the departure of several GSE executives and news that most of the ethics and internal investigations team at Fannie have been laid off.

Allowing the GSEs, under certain conditions, to purchase up to $300 billion in agency MBS each could reduce mortgage rates by as much as 30 basis points, lender groups say.

FHFA’s spring regulatory agenda includes plans to scrap nine existing and proposed rules.

The FHFA director’s social media posts echo President Trump’s criticism of the chair of the Federal Reserve for not lowering rates quickly enough.

In post on X, FHFA Director Bill Pulte nudged the Federal Reserve chair to hike rates: “Jerome Powell cut rates right before the election at ‘higher’ levels of inflation. Why won’t he cut now?”

The remaining items on the Biden administration’s regulatory agenda for FHFA are primarily proposals affecting the Federal Home Loan Banks.

Trade groups point out that it sometimes takes days for lenders to get their collateral back after paying off a Fed advance.

Trade groups representing banks are unhappy with some of the changes FHFA is making to Federal Home Loan Bank practices.