Bloomberg’s interview yesterday with Treasury Secretary Mnuchin has led some to conclude yet again that Treasury is contemplating reprivatizing the GSEs once Mark Calabria is confirmed by the U.S.  These leaps of hope are unsubstantiated by current law, Treasury’s actual goals, and the process likely to put Calabria in charge.  To clarify the situation, we reiterate prior forecasts and their factual underpinnings.  We also update our prior work to add considerations based on growing deficits and the implications of FHFA’s effort to rewrite GSE capital.

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