Fannie Mae-No Politics (FNMA)

[Fully Diluted]

Hi kthomp19,

it is actually possible to maintain the treasury line of credit outside the conservatorships. In this regard, a release before recap is possible. This text passage of the 2018 10-K will certainly help you. On page 31 it says:

"Even if we are released from conservatorship, we remain subject to the terms of the senior preferred stock purchase agreement, senior preferred stock and warrant, which can only be canceled or modified with the consent of Treasury."

If the administration thinks that in many aspects it would be better to release the companies before recap, it will.

Personally, I assume the following steps:
1. final rule for capital requirements
2. capital restoration plan by board of directors

As long as housing finance reform is on the agenda, one can only protect the taxpayer by issuing preferred shares, as the eventual value of the companies is not yet known. This works better outside the conservatorship, but would also be feasible within it with a 4th amendment.

GLTY