Some trade groups urged the Supreme Court to pursue a narrow remedy if the CFPB’s structure is found unconstitutional, in order to prevent market disruption.
One of these days, the two mortgage giants will commence with a new stock offering. Right? The market seems to be betting on the fact, as are the government-sponsored enterprises.
FHFA Director Mark Calabria said he would be willing to wipe out Fannie Mae and Freddie Mac shareholders if needed to ensure taxpayers don’t have to bail out the mortgage giants again.
According to analyst Jaret Seiberg, the risks posed by the Supreme Court’s decision explains why FHFA is considering releasing Fannie and Freddie from conservatorship via a consent decree.
Origination pipelines remain full and lenders, for the most part, are feeling optimistic about profits. Can it last? Probably, as long as rates remain low.