FHFA Director Mark Calabria said to exit conservatorship Fannie Mae and Freddie Mac will have to be adequately capitalized and make appropriate changes to their culture.

One of these days, the two mortgage giants will commence with a new stock offering. Right? The market seems to be betting on the fact, as are the government-sponsored enterprises.

Contrary to recent reports, McKinsey will not help Freddie develop a plan to exit conservatorship. The contract is a routine part of stress testing.

Aside from g-fee pricing, most of the ways the GSEs could engage in volume discounting would take place in the secondary market. That means they’re not really violating regulations.

FHFA Director Mark Calabria said he would be willing to wipe out Fannie Mae and Freddie Mac shareholders if needed to ensure taxpayers don’t have to bail out the mortgage giants again.

According to analyst Jaret Seiberg, the risks posed by the Supreme Court’s decision explains why FHFA is considering releasing Fannie and Freddie from conservatorship via a consent decree.

To reach their statutory minimum capital levels, Fannie and Freddie may only need to accrue an extra $16 billion and $14 billion respectively, based on the size of their current capital buffer plus retained second-quarter earnings.

The agency is looking for a financial advisor to help in its efforts to remove the government-sponsored enterprises from conservatorship.

Analyst Richard Bove thinks the new net worth sweep agreement is just a gimmick because the liquidation preference on Treasury’s preferred stock will offset any increase in the GSEs’ capital buffers.

Experts doubt the non-agency market can pick up the slack of any reduction in the GSEs’ business once the qualified mortgage “patch” expires.