It seems the FMIC model (Corker bill) is dead. CSS will be monitoring FnF and control the secondary market risks in FnF. In other term, CSS will be replacing the conservator. CSS will be Government own entity. I hope I understand this correctly.
I think you might be right the more I think about this. All of this is still very early and anything can happen. I remember DeMarco talking about this CSS like entity in the past say 1-2 years ago. If what you are saying is correct then with DeMarco's plan we have nothing to worry about. Congress has to approve it though.
IMO, CSS has been designed to protect Government from another future bailout. FnF will do business as usual but CSS controls the amount of risks these two can take. That is what FHFA is doing now. I agree CSS will need Congress approval. But for now let's assume: FHFA=CSS