Fannie Mae-No Politics (FNMA)

[Donotunderstand]

“The FHFA’s plan would reconstitute Fannie and Freddie from wards of the state to private shareholder-owned corporations,” the American Banker reported. The GSEs would be put into receivership and their charters would be repealed.

“However, sources say the Senate proposal provides that the remnants of Fannie and Freddie could emerge with similar characteristics as the two current companies,” the article continued. “They would be remade into private guarantors and allowed to build capital from investors. It also envisions that Fannie and Freddie’s successors and other competing guarantors would issue a single mortgage-backed security using the Common Securitization Platform that Fannie and Freddie are currently building under the oversight of the FHFA.”

As I read all of the above - the only thing that is certain is all options from death to glory are on the table for CURRENT GSE holders -- but death is there for sure (especially as the MBA pushes and buys off politicians)