Fannie Mae-No Politics (FNMA)

[Rdy2go]

WTF! Jim Lockhart, Vice Chairman at W.L Ross & Co? Same Wilbur Ross as Commerce Secretary Wilbur Ross! Bloomberg really brushed over that. From yesterday’s Bloomberg video.
https://www.bloomberg.com/news/articles/2019-01-29/trump-administration-to-unveil-fannie-freddie-overhaul-soon

It looks like we might be getting a better idea of what post conservatorship FNF is going to look like. Hmmm....

Trump Administration to Unveil Fannie, Freddie Overhaul Soon
Reduce marketshare - “We need to cut them back”
“Congress create a better system. Government less involved”. (Doesn’t really think this is the path - IMO)
Banks could “better” provide loans for second homes, vacation homes, Refi’s (Cash Out Refi’s) - (Trying to carve something out for the big banks - IMO)
FNF moved to Public Sector
Recapitalized by markets
Catastrophic guarantee on some of their securities.
Must reduce size. Slowly. (Trying to influence a slower implementation - IMO)

Get government out
Put in more counter-cyclical capabilities.
Work with Congress to get to the right structure.

Sounds like he knows something and is trying to influence the outcome a little.

Bottom line: It sounds like unstoppable change will be introduced soon. IMO.