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  • Comment Detail

  • Date: 08/24/20
    First Name: Joseph
    Last Name: Slechta
    Organization: None
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AA95

  • Comment

    I have read through the comments and I echo Kevin Thompson's comments. I also fully support Dr. Calabria's efforts to get the firms out from government control. The CRT's are clearly uneconomic and the former CFO of Fannie Mae showed mathematically why they add risk vs. mitigating it. I am sure Adolfo knows this as well. I am pointing it out because I prefer to not subsidize the buyers of CRT. It makes no sense if you are paying a big fee to only mitigate some of the risk and leave the catastrophic risks with the gse's. If the firms want to get out of conservatorship, they clearly will need a competitive ROE to justify investing in the business vs. just buying JPM or some other company. As a fellow Libertarian, I am sure that Mark Calabria has the sense to be pragmatic about the role of govt and the role of gse's like banks. For now, it seems that these are needed utilities that need to be regulated by FHFA because of the abuse of the system circa 2005-2007 by Quicken loans, Countrywide and a host of big financial institutions that packaged up private label securities for sale. If those same securities all had a govt guarantee stamp on them, the govt would be on the hook just like TBTF. I am going to leave my comments there but point out that folks like Tim Howard should be consulted by FHFA to review risk, not people who have a vested interest in the outcome.