FNMFO - Fannie/Freddie Regulator: PSPA Amendment Needed To Raise Outside Capital

• FHFA's Mark Calabria responds to industry concerns of shrinking footprint saying that Fannie and Freddie cannot legally knowingly take risk against PSPAs.
• In other words, he is saying that the PSPAs are not capital, he argues that there are misperceptions out there that think that the PSPAs serve as capital.
• Calabria offers more capital as a solution to industry concerns "with Fannie and Freddie capital really is the binding constraint on the risk and footprint and activities they can take"
• Calabria says that we "absolutely need another round of PSPA to deal with the capital stack because (.) it will be very difficult if not impossible to raise outside capital."

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