Even though the two companies have paid Treasury about $250 billion over seven years, most of that was interest. They may still owe nearly $118 billion in principal.
FHFA Director Mark Calabria hopes to hire an advisor by next month. He said Fannie and Freddie will need to hire advisors too to help through the recap-and-release process or any possible public offering.
Industry watchers expect David Lowman to join one of the rising fintech firms after he leaves the GSE by the end of the month. Donna Corley will take over as interim EVP.
To reach their statutory minimum capital levels, Fannie and Freddie may only need to accrue an extra $16 billion and $14 billion respectively, based on the size of their current capital buffer plus retained second-quarter earnings.
Credit Suisse made false statements about the LTVs on at least 2,392 of the 6,884 loans in their mortgage pool, overstating their value by at least 105%. The allegations against Barclays were almost identical.