Why Worry?
FHFA today released both the 2020 and 2021 stress-test results for Fannie and Freddie.  Singly and together, the GSEs show formidable resilience and even the potential to build a bit of capital in a severely-adverse scenario.  Without access to the FHFA or GSE models, we cannot tell the extent to which this takes into account the looming risks as forbearance ends, but we have to assume it does.  If so, the GSEs should continue to accumulate capital ahead of the time when someone finally thinks about what to do with it.