There was a fundamental change after SCOTUS. Sandra now serves at the pleasure of the president. "Leaving up to congress" is just lip service and means nothing because it is Biden that determines if she stays on payroll or not.
Calabria went rogue because he couldn't get fired.
Yes, distressed debt is risky, but ultimately it's MBS holders (taxpayers, dollar holders, and fixed income beneficiaries) that are really on the line. If housing prices drop even slightly or interest rates are forced up too quickly. It could easily force fnf into the red, and send ST to congress with her hat in hand (see 2008). She is smart and aware, and wants to avoid this.
This is a poker game and fnf shareholders have the winning hand. Whether its tomorrow or in 5 years there is no possibility to avoid another financial meltdown that doesn't go through settling up with fnf first line shareholders, in order to bring in new capital.
I agree there are too many posters here that jump on every time a judge farts in their chair. I am patient.