This is really the sign I'm waiting for. Removing the extra 1.5% PLBA buffer to the 2.5% base ECRF will be a HUGE signal that things are about to go our way. That decreases the Tier1 capital needed and makes recap & release nearly certain in the short term. The stress tests show that the buffer is unnecessary anyway. The base plus risk-based would cover even catastrophic events.
This does also help consumers. The lower cost of capital means lower G-fees, so lower effective mortgage rates for home buyers.
And if the goal of Bessent/Pulte is to get the twins ready to release and/or mark to market, this is a simple win-win-win situation. Let's get it done already!
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