Even with strong earnings the GSEs are making little progress on meeting stringent capital levels set during the first Trump administration.

Despite ending his long hiatus on GSE talk, Trump fails to persuade skeptics that he’s ready to take Fannie and Freddie out of conservatorship anytime soon.

At Freddie, net interest income has increased slightly in every quarter but one over the past three years.

Fannie added MBS at a fast pace and Freddie reduced its whole-loan holdings.

After weeks of silence on the status of Fannie Mae and Freddie Mac, President Trump stirred up shareholders this weekend by bringing up the concept of a public offering at two separate events.

Fannie Mae’s net interest income has barely changed over the past 13 quarters, while Freddie Mac’s has increased slightly in all but one of those quarters. (Includes data table.)

Until Fannie and Freddie are more transparent about the loan-level pricing adjustment grids for the new credit score, lenders and investors will remain cautious about its implementation.

If FHFA reduces the GSEs’ capital requirements, that would be a key signal that efforts are moving forward to end the conservatorship of Fannie Mae and Freddie Mac.

FHFA argued that the award was an unjustified windfall for GSE shareholders, many of whom knew about the net worth sweep when they purchased the stock.

Industry watchers believe GSE reform is probably off the table until after the mid-term elections at least, as the administration’s focus has shifted to other priorities.