Fannie Mae-No Politics (FNMA)

[TRCPA]

Fannie Mae, Freddie Mac still in conservatorship in 2024? Calabria says it’s possible

Tells Reuters that he hopes to have GSEs out of conservatorship by 2024

~snip~

In fact, Federal Housing Finance Agency Director Mark Calabria now says it’s possible that the GSEs may remain in conservatorship until 2024, at least.

Calabria sat down this week with Reuters and in that interview, the FHFA director said that it is his “hope” to have the GSEs out of conservatorship by the end of his five-year term in 2024.

But, according to the report, Calabria doesn’t view the end of his term as a “hard deadline” for the end of conservatorship.

From Reuters:


“That’s my time horizon,” he said, referring to the end of his term. “I’m under no expectation to try to get all this done. … So if in four years, nine months they’re not out of conservatorship, I’m not pushing them out.”

~snip~

Calabria's mandate to restore FnF to a safe and sound condition necessarily implies moving with some modicum of speed. Trying to do a recap with mostly or all retained earnings is a dereliction of his mandate, not a fulfillment.

I urge you to pay attention to what Calabria is saying and not fall into the trap of assuming that what any of us thinks he should do has any bearing on what he will do.

I'm paying attention. Are you?