The New Mortgage Market
On Monday, we reiterated our call that FHFA would move the capital rule ASAP and then end the conservatorship as quickly as possible under terms and conditions designed to make it challenging for the Biden Administration to unravel a fait accompli. Late yesterday, FHFA issued its final capital rule on a short implementation calendar along with telling reporters that the conservatorship’s end is indeed nigh. In this report, we provide our initial analysis of what post-conservatorship GSEs will look like under this new capital framework; future reports will go in depth on key strategic considerations.