Fannie Mae-No Politics (FNMA)

[DJVan57]

Sounds like they will stop sweep but institute a commitment fee for the unused LOC at treasury. Hopefully, the LOC required will be reduced as they build capital though this will have to be after capital rule is finalized. The LOC will stay in place until capital reaches needed levels and may actually be needed after legislation on a guarantee can’t make it through Congress (likely) . It seems they should be able to figure out how to declare the SPS funded amount paid back and still leave it in place as a backstop.

Just watched the video posted earlier with Gaby from ACG where she mentions the commitment fee and threw out a number of 25bp for the fee - don’t know where she got this (typical for normal funding commitments) so maybe not too far off.
All is looking better than it has in long time though caution is prudent as we are dealing with criminal government - IMHO