Fannie Mae-No Politics (FNMA)

[bcde]

"Just to answer a question I have - when does that accumulated deficit drop off the balance sheet?"

Contrarian bull,
I had answered a question related to this some time back (I have pasted below).

When NWS get revoked retroactively, all accounting entries will have to be reversed since 2012 when NWS was started.

Then create new accounting entries to show that payments went to pay for 10% dividend and reduce SPS liquidation preference.

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Accumulated deficit represents attrition of capital assets to pay dividends.

In a normal situation declared dividends have to be paid out of profits and retained earnings only. If declared dividends are more than profits then it deceases retained earnings by the amount declared dividends exceed profits. If declared dividends are less than profits then it increases retained earnings by the amount profits exceed declared dividends.

In NWS, declared dividends are more than profits and retained earnings. So the difference comes out of liquidation of capital assets and increases accumulated deficit (negative).

Accumulated deficit represents dividends paid from the liquidation of capital assets. Retained earnings represent retained profits.

This has been happening since 2012 when DTAs were reversed. Initially FnF were allowed to keep net worth $3B each, then it is being reduced to 0.