"We're in active discussions with the FHFA about removing the net worth sweeps. That would allow a significant amount of capital to be accumulated," says Treasury Secretary Steven Mnuchin.
The latest reorganization plan hinged on the pre-sale of key Ditech assets, with New Residential Investment purchasing its origination and servicing business for $1.1 billion.
As conservator of Fannie and Freddie, the FHFA failed to perform its duty to take actions "necessary to put the regulated entity in a sound and slovent condition" and to "preserve and conserve" its assets.
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.”