Fannie Mae-No Politics (FNMA)

[RickNagra]

This proposal by Waters back in 2014 means nothing. Hensarling proposal was even worse and yet he was the head of the House Financial Committee. His proposal got nowhere. And back in 2014 Obama was the head. Things have changed since those days. Just yesterday Waters went on record to say the GSEs have repaid their loan.

All eyes and hope now rest upon Mnuchin. Just have to wait it out until 2019. Basically about one more year to go before we see some action.

It is interesting to me, though, that the price is now $1.50. This is for two reasons. Firstly this is exactly the price of a Costco hot dog and drink. Very tasty especially with ketchup, mustard, relish, and onions. Secondly this price $1.50 is exactly the price before Trump won the election. In other words fast forward two years later we have made a big circle. It's like saying the market had high hopes for Mnuchin but because he was taking too long we end up back at our baseline $1.50. That is OK. It allows us to reset the clock, regroup, and ready ourselves for round two.

Who says? Maxine Waters will take over as Financial Chairman if Democrats win. This is part of her proposal in 2014:

https://democrats-financialservices.house.gov/uploadedfiles/media/file/003%20maxine%20waters%20legislation/gse%20bill/waters%20housing%20finance%20reform%20bill%20-%20detailed%201-pager.pdf


"Provides for a “waterfall” for distribution of earnings in conservatorship to:
Treasury Senior Preferred shares, any reserve funds needed in connection with
wind-down of the GSEs, outstanding Affordable Housing Fund payments, and
existing preferred and common shareholders, including Treasury as holder of
warrants."