Old industry hands like Mike Calhoun of CRL and former FHFA acting Director Ed Demarco say getting the GSEs out of conservatorship might be more complicated than the Trump administration believes.
The former Freddie executive said eliminating mortgage servicing rights, or transferring them to the GSEs, would eliminate the need for nonbank mortgage servicers to make servicing advances on delinquent loans.
While the Fed hasn’t formally announced any intention to sell its MBS holdings in the short term, many market participants expect it to happen at some point in the future.
If Calabria is tapped for the FHFA job again, more of the same can be expected: higher capital requirements, increased fees and a smaller GSE footprint.