Fannie Mae-No Politics (FNMA)

[big-yank]

Carney is only stating the same thing that FNMA's CEO said about the company and which was recently reitered in FHFA Director Mel Watts' published commentary on the same subject. Fannie has worked to reduce its risk profile via workouts, refi actions and sale of riskiest assets. It has also increased its guarantee revenues as a percentage of revenue. So it is on a safer footing than its pre-conservatorship status.

It is, however, a victim of shrinking capital reserves as also commented on by both Mayopoulos and Watt.

Carney is just doing his job, and using facts that are available from which to draw his conclusions. John Carney is not the boogieman, just a reporter with longstanding and well researched opinions on both GSEs.

JMHO.