Fannie Mae-No Politics (FNMA)

[Unhombrealado]

So what is the most likely outcome from this situation? In the new tax plan proposed by the White House, Mnuchin said that most deductions will be gone, except charitable contributions, and mortgage interest. He obviously wants people to borrow money for house purchases. The fact that he didn't end the NWS, and that he has repeatedly said that he doesn't want to leave taxpayers at risk, and that he does not want to privatize FnF, seem to indicate that he wants FnF to pay the government a fee for taking on the risk of having to bail them out under extraneous circumstances. That fee, however it ends up being calculated, will eat into both the risk and the profits of these companies, and will keep money flowing from these cash cows to the government. Whatever's leftover will be the basis of valuation for the new Fnf, which is definitely more that current pps, but I doubt it would be a 10x return on this investment