Fannie Mae-No Politics (FNMA)

[kthomp19]

I wrote that the 4th amendment must be agreed with the end of the NWS in September so that the Q4 profits can be retained to prevent a further bailout on March 31, 2020.

I don't think this is true. The last estimate I saw for FnF's CECL losses is $12.5B combined. One quarter of earnings plus the current retained capital might very well not be enough.

Therefore I think things will have to move even faster, as in an equity raise (or even the equity raise) before March 31 2020. Election season looms, so this CECL writedown is just another reason to get things done sooner rather than later.