- "Let me remind you, both recapitalization of (OTCQB:FNMA and OTCQB:FMCC) and draws against the existing Treasury backstop due to potential future losses would come at taxpayers’ expense,” says Michael Stegman, Treasurys counselor to the secretary for housing finance policy, speaking at a Goldman Sachs housing-finance conference.
- He notes both have significant remaining credit to draw on should capital run low.
- In the absence of any housing finance reform from Congress, Stegman suggests he would like to see the two GSE wind down their mortgage portfolios at a faster pace than is currently happening. He also likes recent efforts to offload some of their credit risk to the private sector, and would like to see more of such deals.
Administration rejects GSE recapitalization ideas
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Symbol | Last Price | % Chg |
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FNMA | - | - |
Federal National Mortgage Association |