There seems to be no clear consensus among the Supreme Court justices hearing the case challenging the constitutionality of the Consumer Financial Protection Bureau.
If Treasury converts its senior preferred shares to commons and the GSEs go for a public offering, existing shareholders will take a haircut. Valuations on the commons could dip to $1/share for Fannie and $2 for Freddie.
Ginnie Mae plans to replace the current pool-level orientation of its mortgage-backed securities platform with loan-level functionality. The goal is to scope out a path and timeline to implement loan-level capabilities.
If a Democrat wins the presidential race, industry analysts expect regulatory changes in the mortgage industry. If Trump is reelected, GSE reform efforts will continue to gather pace.
Asked what levels of capital would be necessary in order to release Fannie and Freddie from conservatorships, Treasury and FHFA said it is “premature” to comment on specific levels.
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