Wow. Brooge.....thank you so much for posting that.
Just listened to the entire interview. And my takeaway is this. I have read and listened to hundreds if not thousands of pieces of information regarding the GSE's over the last few years. Without doubt, that was the most interesting and informative 57 minutes that I have spent on these matters to date....although the first half was the specific focus on the GSE's and conservatorship.
Craig Phillips is about what going to work for the government should be all about. He is smart, rational, non partisan, and deep thinking. To say nothing of eloquent. What he presented was the inside look and the big picture that I think we have all been missing, and hoping to hear at some point.
I must also say that quite a bit of it was what I had suspected was occurring behind the scenes. A few things were not.
My specific key takeaways.....
1) He and Mnuchin's initial idea from day one was to let the GSE's retain their profits toward their goal of capital raise and release from conservatorship by the end of the first four years
2) Mel Watt agreed with them that the GSE's should be released
3) It didnt matter as much who was sitting in the FHFA director's chair, but it became sort if a political strategy that they would wait to appoint their own.
4) Then came Calabria, who also held the same views for release from conservatorship as did the others
Here is where it really got interesting for my ears.
When Phillips first started discussing Calabria, he was initially very supportive sounding of what Calabria and his plans are. As the dialogue went further, however, Phillips made a point that he felt differently than Calabria about the nature of what reform had already taken place, and how much more may have needed to occur. Phillips clearly was of the mind that the GSE's HAD reformed, and well, since 2008. Calabria clearly had differing views.
The next part focused on competition in that sector. Again, Calabria made it a point that he wanted a lot of competition for the GSE's in the packaging and selling of mortgages. Phillips, while supportive of some of this, also made a strong point that the GSE's would always be a better vehicle than any competitors because of their financial clout, depth of experience, and ability to navigate the environment.
The one remaining point that was not touched on was Calabria's very high capital standards edict. My sense was if that question had been asked of Phillip's, he would have politely stated that his view differed to the extent that much capital was needed.
In any event, it was a great interview, and we should all be proud to have people like Phillips, who would want to enter government work from the private sector to do the people's work and do it well.
