Mark Calabria, Director of the Federal Housing Finance Agency (FHFA), made it clear last Thursday that the government-sponsored enterprises (GSEs) need to take a look at some of their continued practices in order for the FHFA to feel comfortable releasing them from conservatorship. As an example, Calabria pointed to the fact that, when he took over as Director in April, GSEs were still offering volume discounts to lenders despite a directive that banned the practice. Additionally, until recently, one of the GSEs has awarded compensation based on market share. “Certainly what you’ve been seeing over the last few years is not the kind of day-to-day behavior that you would expect from companies that are in conservatorship,” said Calabria.

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