Fannie Mae-No Politics (FNMA)

[Wise Man]

The Conservator can slash the dividend on the JPS to 4%, for instance, thanks to its Incidental Power and HERA's succession provision.
A refinancing is what would have been done in the absence of Conservatorship, but the BOD would have done it in a different way. First redeeming the JPS at par-value, and later issuing new JPS at a lower coupon. Now it can't be done because who is going to buy again a JPS issued by FnF. They will carry a stigma due to the Government's actions that will be difficult to erase.
Some JPS pay an 8.25% dividend. More detail in #Fanniegate.