How Sticky is the ERCF, Part II? Consider that FHFA Admitted to Congress in its 2023 Report that the ERCF Exceeded FHFA's Regulatory Authority

This "Admission Against Interest" by FHFA Justifies Recession of the ERCF by the new FHFA Director and DOGE

In How Sticky is the ERCF?, I examined whether and how the new FHFA Director, working in conjunction with DOGE, might rescind the ERCF. The basis for this rescission would be that the ERCF promulgated in 2020-2021 by FHFA Director Calabria exceeded the grant of statutory authority to the FHFA Director contained in HERA to implement a risk-based capital regulatory scheme for the GSEs.

Litigators always prefer favorable testimony from adverse witnesses than their own witnesses. It is called an admission against interest. It turns out that in FHFA’s 2023 Report to Congress, FHFA engaged in such an admission against interest. FHFA stated that the ERCF that it promulgated exceeded the statutory authority granted to FHFA by Congress in HERA, the statute that created FHFA. This admission against interest provides explicit support to the new FHFA Director and DOGE to rescind the ERCF.