Federal Housing Finance Agency Director Mel Watt recently dished on the mounting challenges that come with Fannie Mae and Freddie Mac being in conservatorship for eight years and reiterated his unease about declining capital buffers. He said the prolonged conservatorship makes it difficult to plan for the future when much is uncertain. “Some of the challenges and risks we are managing are escalating and will continue to do so the longer the enterprises remain in conservatorship,” said Watt, speaking at the Bipartisan Policy Center in Washington, DC, this week. The most serious risk is the GSEs’ lack of capital, according to the former North Carolina congressman, who pointed out that on Jan. 1, 2018, Fannie...