The Treasury Department envisions a multi-year recapitalization of the GSEs. Secretary Steven Mnuchin told the Senate Banking Committee on Tuesday that the process is already underway.
As most observers expected, the Treasury reform plan leaves most of the important details for Congress or the Federal Housing Finance Agency to figure out.
Treasury Secretary Steven Mnuchin shed some light on how renegotiating the preferred stock purchase agreements by the Treasury and the Federal Housing Finance Agency might impact plans to recapitalize Fannie Mae and Freddie Mac.
While most in the industry held back their comments, Milken Institute Director Eric Kaplan said the plan’s focus on capitalization of Fannie Mae and Freddie Mac makes it looks like the release of the GSEs is really in the cards.
The government-sponsored enterprises’ shareholders are hoping the Fifth Circuit’s decision holding the FHFA structure unconstitutional means the so-called net worth sweep may be invalidated.