Fannie Mae-No Politics (FNMA)

[Letgoofmyfannie]

The Rocky Road to GSE Reform

All the Devils are quoted here, LOL

http://robertstoweengland.com/index.php/writer/1663-the-rocky-road-to-gse-reform.html


Here's the Best Part [Heheh, Pressure is actually mounting on THEM not US as we're already Dead but their Political Lives will be on the line...tick tick tick tick...]

"" January 2018 deadline

There’s also a bit of a hard deadline facing the next administration and Congress that would turn even modest quarterly losses at the GSEs into a new bailout situation beginning as soon as the first quarter of 2018.

A new bailout of two financial giants that have already been bailed out is likely to create political fireworks and increase public fury already aimed at the political class in Washington. Public outrage is likely to swiftly move mortgage finance reform to the forefront.

The financial vulnerability of the GSEs rests on the fact that their already very thin capital reserve amount, set at $3 billion in 2013, is slated to fall to zero by Jan. 1, 2018. It currently sits at $1.2 billion.

The planned elimination of the capital reserve was part of a 2012 amendment by Treasury of the senior preferred stock purchase agreement under which Treasury eventually advanced $187.5 billion in funds to the GSEs to cover losses.

Under existing regulations and agreements, a bailout can proceed without any involvement from Congress or new administration initiative. ""