Although the report notes that the administration’s preference is for legislative reform, the plan emphasizes that reform “should not and need not wait on Congress.”
Low rates on Fannie debt may reflect a sagging world bond market, with some European bonds being issued at negative interest rates; to date, Freddie has sold $4 billion in reperforming loans through SLST deals.
The latest stress tests provide a window into the risk retained by the GSEs, and therefore, into how much capital they'll need to survive the next economic crash.
The latest FHFA directive is something of a mystery. In separate 8-Ks, both Fannie and Freddie point out that no employees currently receive a base salary of more than $600,000.