Calabria pushes pedal on GSE reform before Biden takes office

FHFA Mark Calabria 575 375
By Jennifer Kang
19 Nov 2020

The Federal Housing Finance Agency (FHFA) issued its final capital rule on Wednesday, mandating more capital for Fannie Mae and Freddie Mac to ensure they exit conservatorship on a ‘sound capital footing’. The agency’s progress towards privatisation could be limited by the likelihood that President-elect Joe Biden will switch out FHFA boss Mark Calabria for a Democratic pick.

The final capital rule from the FHFA lays out a series of conditions Fannie and Freddie must adhere to, all focused on ensuring the “safety and soundness” of the enterprises as they prepare to exit conservatorship. The most significant requirement is that the government sponsored enterprises (GSEs) ...

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