The case hinges on whether the single-director structure of FHFA is unconstitutional.

Based on current earnings, it will take until 4Q20 or 1Q21 for Fannie to accumulate its statutory minimum capital requirement. For Freddie, the wait will be a little longer — until the 2Q21.

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.

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.

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

The agency reached a settlement with Simone Grimes, who had accused her former boss, then-FHFA Director Mel Watt, of sexual harassment.

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

A lack of consistency in terminology used by the GSEs makes it impossible for the FHFA to assess the cybersecurity risks they face.

If all goes to plan, Fannie Mae and Freddie Mac will retain most of their earnings beginning with the third quarter.