Fannie Mae-No Politics (FNMA)

[FOFreddie]

Can we make the case that GAAP BV with JPS conversion for FMCC would be approximately 41 bn without a DTA credit?

$9bn BV + $ 7 bn 2020 earnings + $ 11 bn Collins Settlement = $27 bn or $ 8.30 per share BV

With JPS Conversion $27bn + $ 14 bn JPS = $ 41 bn

Will there also be a possibility that a DTA credit could be used for regulatory capital?

If JPS was converted at 80% of BV ( 14bn/(8.3X 0.8) then 2.1 bn new shares issued.

Pro-forma Shares outstanding after conversion = 3.25 + 2.1 = 5.35 bn
Pro-forma BV per share. $41bn/5.35bn = $ 7.66

Just a guess but close to your $7.50 number

If Regulatory Capital is more like $60 bn rather than $75 bn - Stock offering not so immense especially if instutions start buying 30 to 60 pct of the float. Just rough guess - thoughts?