Fannie Mae-No Politics (FNMA)

[Letgoofmyfannie]

jtimothyhoward SEPTEMBER 30, 2019 AT 12:27 PM

I picked this up over on the he who is not to be named board:

"" The substance of this announcement was as I was expecting (as were many others), although I thought Treasury and FHFA might not wait until the last day of the month to make it. Fannie will be allowed to retain an additional $22 billion in earnings (up to a total of $25 billion, including the $3 billion authorized at the end of 2017), while Freddie will be allowed to retain an additional $17 billion (for a total of $20 billion). I also noted this sentence at the end of Treasury’s letter to each company: “The Enterprise and Treasury agree to negotiate and execute an additional amendment to the Agreement that further enhances taxpayer protections by adopting covenants broadly consistent with recommendations for administrative reform contained in Treasury’s September 2019 Housing Reform Plan, in further consideration for the amendment contained in Part I of this agreement.” I view this as a positive, since it means that “reforms” to the companies to be imposed between now and when they are released from conservatorship will be negotiated by the parties, rather than imposed by FHFA as conservator. ""