Fannie Mae-No Politics (FNMA)

[imtheshadow]

bull, if anything needs improving, its probably my understanding and not your explanation! I do see your point, but I thought the scenario being explored was converting the NWS into a loan? If that is the case, we go back in time and (pretending this all happened at once) record the total draws as a liability and the cash received from the draws as an asset. As you pay back the loan, the liability (incl. interest) gets reduced and your cash balance reflects the payments. In the end, our net worth declines by the amount of interest paid (i.e. that exceeds the loan proceeds) - but that difference would be offset to the extent we have repaid more than the loan - and that amount would increase our net worth. I think that's just basic accounting but may not be the scenario you are talking about. cheers