In his first report to Congress as director, Mark Calabria describes how new accounting standards, credit-risk transfers and high interest rates cut into profits at the GSEs.
Speculation continues to mount regarding whether Fannie Mae and Freddie Mac will be allowed to retain more capital. But will such a move be a precursor to a "recap and release" plan?
Joseph Otting, acting director of the Federal Housing Finance Agency, set the rumor mills in motion last week when he told an audience at George Mason University Law School that the agency would finish work this summer on final capital rules for Fannie Mae and Freddie Mac.