An continued implicit guarantee would be welcomed by MBS investors.

Housing finance aficionados like the prospect of a GSE exit from conservatorship that includes the retention of the Treasury’s PSPA, especially if done in conjunction with a sovereign wealth fund.

The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.

FHFA's move alleviates industry concerns of duplicative oversight of lender compliance with unfair or deceptive acts or practices requirements.

David Brickman, the CEO of Freddie Mac from 2019 to 2021, argued that 16 years of conservatorship have increased inefficiencies at the GSEs.

It’s unclear, though, how this stratagem would simplify the “recap and release” of the enterprises.

Rithm on Monday closed an $878 million debt sale, this one collateralized solely by MSRs.

Freddie President Michael Hutchins will step in as interim CEO.

Some SWFs in other countries have extensive ownership interests in major corporations and sweep much of their profits into state coffers.

Analysts worry that FHFA’s more hands-on intervention in GSE management may hint at the return of the net worth sweep and the dashing of any hopes of an end to the conservatorships.