It’s anticipated that when Freddie executive vice president of single-family David Lowman departs the GSE later this month, he will be headed to a fintech firm…
Alex Pollock: Even if you allow the companies a credit of 2% interest on their over-payments, they would nevertheless be left with a principal debt exceeding $100 billion.
Based on current earnings, it will take until 4Q20 or 1Q21 for Fannie to accumulate its statutory minimum capital requirement. For Freddie, the wait will be a little longer — until the 2Q21.
Even though the two companies have paid Treasury about $250 billion over seven years, most of that was interest. They may still owe nearly $118 billion in principal.
FHFA Director Mark Calabria hopes to hire an advisor by next month. He said Fannie and Freddie will need to hire advisors too to help through the recap-and-release process or any possible public offering.
Industry watchers expect David Lowman to join one of the rising fintech firms after he leaves the GSE by the end of the month. Donna Corley will take over as interim EVP.