Seeking Alpha, April 8, 2022, FHFA Is Working With Fannie/Freddie To Help End Conservatorships
The Federal Housing Finance Agency (FHFA) was created by law in 2008 to oversee and regulate Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC). FHFA immediately placed them into conservatorship and they’ve been there ever since. From 2008-2010, FHFA used its discretionary accounting authority to ensure Fannie and Freddie reported losses and Treasury bought more senior preferred stock. In 2012, when Fannie and Freddie were being forced to reverse all of those discretionary accounting losses, FHFA worked with Treasury to ensure Treasury took everything via the net worth sweep. Fannie and Freddie continued to be bled dry until 2019 when Mark Calabria worked with Steven Mnuchin to change the agreement so that Fannie and Freddie could retain capital. Ever since then, Fannie and Freddie have been on a path out of conservatorship.