In its latest white paper, FHFA’s OIG analyzed CECL’s impact on Fannie, Freddie, and the FHLBs.  Largely a discussion of CECL and GSE accounting-system changes, the report has no bearing on our prior analyses of CECL’s market impact.  That the GSEs’ models are ready for CECL is of course comforting.  What these models then do in terms of reserving, capitalization, and market construct is, though, a lot more interesting.

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