Fannie Mae-No Politics (FNMA)

[YanksGhost]

<< This is why FnF need credit line from Gov during phased recap. >>

Yes, that is one option. Another is that the GSEs get released but are unable to issue any new MBS until capital is rebuilt unless some forbearance period is empowered by the Regulator. My opinion is that recap gets facilitated by government cancelling the warrants and allowing a 5 B common equity secondary offering to provide capital for justify a return to a "business as usual" posture for Fannie Mae and Freddie Mac.