here's how I think about it. right now, govt's litigation strategy is 180 degrees opposite of its policy position. continuing to litigate makes no sense if you want to implement policy of recapping GSEs. now, adopting that strategy took a lot of fortitude because many in congress oppose, but the administration held firm, and those opposing in congress have largely moved on to other sound bite opportunities. but why continue to litigate if it is at odds with policy, now that congress is off the GSEs?
so the reason must be govt wants some form of political cover, together with the Goldman Sachs theory that you don't act until you have to, because different and better options may arise. Mnuchin was born and bred at Goldman.
now, what happens if Biden wins? my guess is that the wait for political cover will be over...in essence, letting Biden appoint Ds to DOJ/FHFA and have Parrott back holding the housing reins is political cover enough for Mnuchin/Calabria to act before inauguration to prevent this. this is DC actor speculation, which ACG should know better than I do, but that is how this scenario makes sense to me.
