Fannie Mae-No Politics (FNMA)

[Spicoli]

https://howardonmortgagefinance.com/2018/05/03/a-view-on-affordable-housing/#comment-6987



Canceling the senior preferred, allowing the companies to recapitalize, and having the government exercise the warrants (and then sell them, not “keep them forever”) are the primary elements of the Moelis plan. There is no legal impediment to the government doing that, but to date the administration has not decided that’s what it wants with Fannie and Freddie. I and many others believe it is the best solution for the financial system and homebuyers, but the large banks and Wall Street interests oppose it–they prefer a “bank-centric” secondary market, which will give them more control over and profitability from the residential mortgage market as a whole–so we remain at impasse, with Congress unable to decide what to do and the administration unwilling to. I continue to believe that the most likely catalyst for action on secondary mortgage reform will be a victory for the plaintiffs in one or more of the lawsuits.