Today on the radio I stumbled into the middle of a talk on mortgage finance where the host spoke of Fannie & Freddie along with the recent Supreme Court decision and the immediate dismissal of Mark Calabria as a consequence. He was fairly explaining the history of the Conservatorship including the net worth sweep as well as the role Fannie and Freddie play in mortgage finance with emphasis on how crucial they are to all players in the system, especially the mortgage holder! He felt that the net worth sweep cost everyone money and pointed out Mark Calabria began to allow the twins to begin retaining capital thus ending the net worth sweep which he thought was a good idea. He also informed the audience Mark Calbria was preparing Fannie & Freddie to exit Conservatorship by doing so to assure they could whether a downturn such as the housing bubble that burst in 2008. He felt it important to raise awareness of who FnF are, what they do and that they should be released from Conservatorship to better serve everyone involved in Mortgage Finance, especially the consumer. He was very concerned that the GSE's could be kept in perpetual Conservatorship and that release from Conservatorship requires the approval of the US Treasurer.
Now I say to all that I've not seen the spotlight on FnF like it is today since the housing bubble burst in 2008. The SCOTUS decision and Fannie n Freddie were the printed front page headline of the Wall Street Journal and I'm hearing some FnF empathy creeping into mainstream media so IMNSHO I say it's time shareholders make some noise!
This House Representative from Illinois prompted MC to say, "The shareholders should have been wiped out in 08". Bill Foster point blank told MC right before MC said it, "The shareholders should be wiped out!". Bill Foster apparently was a government employee physicist at the Los Alamos Lab and is probably one of the most anti shareholder friendly in Congress!
Certainly he would be a fine pick as the new FHFA Director!
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