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Fannie’s Watchdog Says Focus Is on Exit Strategy, Not Lawsuits

  • Investor challenge to profit sweep has reached Supreme Court
  • Calabria says sweep can end without addressing the litigation
Mark Calabria testifies during a House Financial Services Committee hearing on Capitol Hill in Oct. 22, 2019. 

Mark Calabria testifies during a House Financial Services Committee hearing on Capitol Hill in Oct. 22, 2019. 

Photographer: Zach Gibson/Bloomberg

Fannie Mae and Freddie Mac’s regulator said he is focused on helping the mortgage giants build sufficient capital to exit federal control as quickly as possible and isn’t particularly concerned with resolving investor litigation that has reached the U.S. Supreme Court.

Federal Housing Finance Agency Director Mark Calabria, speaking at a briefing with reporters on Thursday, said he intends to spur the companies’ ability to boost reserves by eventually ending the so-called net-worth sweep that sends their profits to the U.S. Treasury. Calabria said work toward that goal is proceeding without regard for whether it will address all of the concerns raised in the shareholder lawsuits.