Fannie Mae (FNMA)

[obiterdictum]

Where (in your opinion based on facts known) do you see the GSEs headed?

The GSEs, as companies, are headed where they say they are headed. This information is clearly presented in their recent 10-K and 8-K financial reports (see below). The GSEs are going forward with business as usual and with profitability hampered by the SPSPAs and market conditions they are fully aware of in the foreseeable future.

Even so, since the GSEs are in conservatorships and under the aegis and control of the FHFA and US Treasury, the future company structure and operations are unknown. The companies' organizational and financial structure and the scope, type and extent of business and financial operations may be variously determined legislatively by Congress alone, administratively by the US Treasury, FHFA and the Trump Administration, or in some combination of legislative and administrative solutions. All of this can be influenced or not by proposals made by think tanks, housing finance lobbyists and experts, past and future court dispositions, and a host of other outsiders.

The latter paragraph provides the main sources of uncertainty about the future of the GSEs. This tangible uncertainty created by political, legal, and administrative indecision fosters the endless and fruitless speculations made by financial pundits and bloggers, fiscal ideologues, political party platform representatives, housing finance reformers and affordable housing advocates, social, political and banking associations, investors and investor organizations, judges, lawyers, reporters, traders, forum members, etc.

This uncertainty also undermines the GSE stock price value and trading volume and promotes speculative, short term trading and shorting that dominates the daily OTC market.

Speculations on the future of the GSEs cannot be taken any farther. Speculations have become repetitive, circular and biased and are now more akin to entertainment than to pertinent, useful information.

Sources:
FNMA
10-K
https://www.sec.gov/Archives/edgar/data/310522/000031052218000107/fanniemae201710k.htm

8-K
https://www.sec.gov/Archives/edgar/data/310522/000031052218000108/fanniemae201710kpressrelea.htm

https://www.sec.gov/Archives/edgar/data/310522/000031052218000108/q42017creditsupplement8k.htm

FMCC
10-K
https://www.sec.gov/Archives/edgar/data/1026214/000102621418000020/a20174q10k.htm

8-K
https://www.sec.gov/Archives/edgar/data/1026214/000102621418000021/a20174qerexhibit991.htm

https://www.sec.gov/Archives/edgar/data/1026214/000102621418000021/a20174qerexhibit992a01.htm