Fannie Mae-No Politics (FNMA)

[MarketMaker128]

Technically, the accounting rule will not allow dividend payment until retained earning is positive. Based on my model, even if the retroactive repayment of SPS happens and the SPS dividend under the original arrangement is re-instated (i.e. if they are considered PIK'd instead of paid in cash), the retained earning would still be in the red. Assuming the company makes $10b/yr of NI going forward, it will take additional 2-3 years until retained earning is positive once again.