Fannie Mae-No Politics (FNMA)

[kthomp19]

Anyone else see Calabria's statement negative for us f&f shareholders?

I think it's not necessarily positive.

When he says "we must not let this opportunity for reform pass" it seems he wants reform to happen before any recapitalization and ultimate release for the GSE's. Once they are recapped and released, the opportunity to reform them will have passed.

I would replace the "before" (emphasis added) with "alongside". But I agree with the last sentence. The presidential memo was pretty clear in the desire to reform the whole housing finance system, not just FnF.

I have seen some that anticipate an end to the NWS being announced in isolation, but not only do I disagree with that being a possibility (unless it's due to a court order), I'm starting to think that a recap and release won't be done without the rest of reforms as you said.

I was really hoping he would take actions THIS year and not wait for congress to maybe, possibly pass some sort of reform in the next few years.

I don't share this fear, though. Watt was the ultimate sit-on-your-hands director. Calabria, with the mandate from the President, won't do the same. This administration is in a huge hurry, and will want to get as much of this wrapped up as possible before campaign season.