Fannie Mae (FNMA)

[Mikey Mike]

Severely adverse scenario also assumes GLOBAL SHOCK

Note: Fannie Mae’s Severely Adverse scenario is not an expected forecast, but a hypothetical stress scenario using Fannie Mae’s internal projections by applying the rules and conditions set forth by FHFA.

The SPSPA also restricts Fannie Mae from the following types of distributions of capital:
1. issuing additional equity,
2. repurchasing or redeeming common stock or preferred stock, and
3. paying dividends on common stock or preferred stock other than the senior preferred stock.

------>>> NOTICE HOW DIVIDENDS ARE NOT MANDATORY, YET FHFA CHOOSES TO DO SO!!!

http://www.fanniemae.com/resources/file/aboutus/pdf/2014-stress-test.pdf