Dealing with the risks in Fannie Mae’s and Freddie Mac’s portfolio is more complicated than simply reducing the footprint of the government-sponsored enterprises, FHFA Director Mark Calabria told IM&A.
One industry lobbyist, requesting anonymity, noted that when it comes to a possible recapitalization-and-release plan for Fannie and Freddie, “Everything flows from the capital rule. This shows us the [recap and release] process will not go quickly.”
The Treasury Department envisions a multi-year recapitalization of the GSEs. Secretary Steven Mnuchin told the Senate Banking Committee on Tuesday that the process is already underway.