Fannie Mae-No Politics (FNMA)

[Unhombrealado]

There are scenarios that prevent the draw. The Senate tax bill doesn't phase the corporate tax reduction until 2019, which would mean FnF could pre-allocate 2018 earnings to expected losses and so cover the DTA losses with their regular income. This would be favored by a switch to a yearly NWS instead of a quarterly one.

Or, FnF are allowed to retain capital as part of the next NWS, and the tax bill doesn't pass until early next year. Then, the GSE's could use 2 quarters worth of earnings and a lower tax bill to cover for the DTA writedowns.

Everything is still speculation at this point, but time will definitely tell.