After a mixed decision in the Fifth Circuit, it’s not clear how the SCOTUS will rule — especially with the death of Justice Ruth Bader Ginsburg last week. Oral arguments are scheduled for Dec. 9.
“Let’s be very clear,” Calabria said. “The CARES Act imposed unfunded costs on Fannie and Freddie,” adding that, by statute, the GSEs are required to recoup those costs via income.
Facing pressure from both sides of the aisle, FHFA Director Mark Calabria said if the GSEs had come into the current crisis with sufficient capital, the adverse market fee could have been delayed for a few years.
Less than a week after it went into effect, the Centers for Disease Control and Prevention’s controversial eviction moratorium is facing a legal challenge from a landlord of a small mortgaged property.
The pencil sharpening represents a 13.8% jump from the $3.4 trillion Fannie predicted just month ago, and 88.8% more than the $2.06 trillion in originations the GSE forecast in January, before the advent of the coronavirus pandemic.
The Structured Finance Association said it is concerned FHFA believes that, if the GSEs have capital levels similar to banks, the need for an explicit guarantee will be eliminated.
Nonprofit groups said the new rule will lead to higher guarantee fees, potentially pricing many low-income families and families of color out of the GSE channel.