Fannie Mae-No Politics (FNMA)

[brandemarcus]

Oh my , two out of the last 3 fiscal quarters. 10 years is forty quarters and 80 quarters including Fannie. Since 2012, what has been the aggregate profitability of the gse's? That's all ready at least 16 quarters and well in excess of 200 billion. Yet you are going to look at the noise from mark to market in 2 out of 16 quarters. Note that less than 40 % is dta reversal. Every quarter the bad loan inventory keeps declining. There were plenty of recessions in the last 40 years and Fannie mae did fine in all but one. The loans from the 2009 book forward are so pristine in loan to value etc, that real losses are a figment of over active imaginations. There is still 35 billion in the loss reserves that has already been deducted from income to prepare for that next recession. Before you hit the income statement for new reserves you have to explain why that 35 billion is not enough. The 2009-2012 loan books have huge implied gains, Fannie mae and Freddie mac would make considerable profits if any of those loans defaulted.