How to Redesign a Government-Sponsored Enterprise
After last week’s colossal Supreme Court decision, we provided our first assessment of its impact on near-term charter, mission, and regulatory decisions.  Now, we turn in detail to what might come to pass for the conservatorship.  Nothing soon of course – the status quo will be steady-state at least until a new director is confirmed and likely for at least a year thereafter given all else on FHFA’s and the Administration’s to-do list.  Still, what many have come to consider a good thing can’t and won’t last forever.  Many Biden proposals are new-age versions of Obama ideas and we expect this to prove the case also for the conservatorship.  And, of course, even if the conservatorships continue – as surely they will for a while – key aspects of them can and will be redesigned.

GSE-062821.pdf