Converting from Tier 1 to CET1 is extremely important when the FHFA capital rule is so heavily weighted to CET1 capital. New JPS cannot be issued if existing JPS are not converted to CET1. GSEs, their FAs and FHFA will want the flexibility to offer new JPS in the future.
How does converting one form of stock to another make Capital? Do you use Bush administration mathematics to figure that? LOL