The new rule gives Fannie and Freddie two years to come up with a resolution plan that includes no government support in the event of a crisis. Housing finance experts say: “Good luck with that.”

Critics argue that the goals, as currently structured, don’t offer much assistance to low- and moderate-income borrowers or mortgagors of color.

With regard to ending PSPA purchase restrictions imposed on the GSEs, the FHFA director said it would depend on capital.

Mortgage industry groups continue to put pressure on the Treasury Department and the Federal Housing Finance Agency to revisit the restrictions on the amount of loans Fannie Mae and Freddie Mac can purchase.

The proposed rule would require the GSEs to write living wills that include no government support. However, their PSPA with Treasury includes letters of credit with an outstanding balance of $254 billion.

When the FHFA appointed two new independent directors to the CSS board in January, it changed the balance of power in its favor.

The co-inventor of the MBS says Fannie and Freddie should be regulated as utilities to improve their affordable housing and racial equity activities. He recommends Treasury use its equity to fund joint venture.

Industry insiders speculate on how the Biden administration might alter the recently amended preferred stock purchase agreement.

The new PSPA will allow Freddie Mac and Fannie Mae to continue retaining earnings until they reach the regulatory minimum capital — almost $283 billion combined.

Justice Stephen Breyer raised eyebrows by characterizing the government’s net worth sweep of Fannie Mae and Freddie Mac profits as nationalization of the GSEs.