Fannie Mae (FNMA)

[navycmdr]

Tax cuts mean Frannie to draw from Treasury in Q1

Dec. 14, 2017 9:55 AM ET|By: Stephen Alpher, SA News Editor

via Bloomberg's Felice Maranz

-- The GSEs' deferred tax assets assume a 35% tax rate, but a cut to 21% would mean writedowns, a Q4 GAAP loss, and a cash transfer from Treasury in Q1, says FTN Financial's Jim Vogel.

-- That's likely to at least delay FHFA Director Mel Watt's hope to get the Trump administration agree to let Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) begin to build capital, says Vogel.