Fannie Mae-No Politics (FNMA)

[big-yank]

A new FnF era begins January 21, 2017.

1. Fannie & Freddie will be released from conservatorship.

2. FHFA will cease to function or regulate FnF.

3. The warrants will be cancelled.

4. The sweep will be cancelled.

5. Fannie Mae & Freddie Mac boards will resume autonomous direction @ GSEs.

6. Senior preferred stock will be cancelled and all claims deemed paid.

7. No future UST draws will be contractually available.

8. Both GSEs will be eligible to re-apply for NYSE listing.

9. There will be no affordable housing goal or mandate.

10. There will be no explicit or implicit guarantees for GSE-issued MBS.

And, so, the plate gets wiped largely clean with just two items remaining for government to deal with regarding the GSEs: the cost of any settlements granted in pending court actions, and, the budgetary pressure created by giving up the proceeds which Fannie & Freddie contributed to Treasury from 2013 through 2016/Q3.

Piece of cake!

JMHO.