Fannie Mae-No Politics (FNMA)

[RickNagra]

So it seems the pop today was related to the award Fannie received today SSA Deal of the Year award from Risk Magazine. This is really really important for a variety of reasons :

1 : It makes Fannie look very good.
2 : Since 2013 Fannie has successfully issued CAS and transferred some credit risk to private investors. Since is exactly what Congress wanted Fannie to do.
3 : This award is egg on Warner and Corker faces.
4 : This award is more ammunition for Mnuchin and Trump to stop the NWS and end the conservatorship.
5 : This award provides concrete proof and strong evidence to release the GSE's from conservatorship.
6 : This award weakens the arguments made by Warner and Corker.

WASHINGTON, Jan. 26, 2017 /PRNewswire/ -- Fannie Mae's (OTC Bulletin Board: FNMA) Connecticut Avenues Securities™ (CAS) transaction, CAS 2016-C01, has received the first-ever Sovereigns, Supranationals, and Agencies (SSA) Deal of the Year award from Risk Magazine. The Risk awards spotlight the best practices in risk management and derivatives markets that result in positive outcomes for clients. The deal introduced innovative program enhancements to investors, further reducing credit risk exposure and promoting additional liquidity in a developing market. A Risk Magazine editorial panel determined award winners following their review of materials and feedback from clients and industry participants.

"We strive to design our program in a sustainable manner that promotes liquidity and builds a deep and broad investor base," said Laurel Davis, vice president of credit risk transfer, Fannie Mae. "It is an honor to have our efforts acknowledged by such a highly respected publication as well as our investors."

Despite turbulent financial market conditions in February 2016, Fannie Mae successfully issued CAS 2016-C01 with the execution of a $945.1 million note offering. Since its inception in 2013, the CAS program has issued more than $21.2 billion in securities and transferred a portion of Fannie Mae's credit risk to private investors on single-family mortgage loans with an original unpaid principal balance (UPB) of approximately $721 billion, increasing the role of private capital in the mortgage market and reducing taxpayer risk. Through January 18, 2017, we have led the market in volume of risk transfer, transacting in over $25 billion across all of our programs, covering nearly $900 billion in UPB.