Fannie Mae-No Politics (FNMA)

[AuntyMamie]

Good get! I mentioned the likelihood state housing agencies grants and bond funds being expanded and increased after Carson's remarks last Tuesday. If TSY enhances rules to sweeten the appetite for tax-exempt state housing bond investments, this will help affordable housing. The problem for traditional MBS investors is cross-collateralization and fulfillment. States can payoff any bond they choose. Not all state housing programs are equal. Makes duration and bond value hard to predict. Which is why FnF were the best investors.