Fannie Mae-No Politics (FNMA)

[Louie_Louie]

I think government will push for as mediocre and as little as possible to both pref's and commons. The equalizer will be the courts. Trump admin can say in the press and to congress, we fought the good fight but when it came down to it, the previous administration screwed the pooch.

This will provide the biggest benefit to the GSE'S and not directly to a share class, so if companies are made more whole due to court cases, then I do see more upside personally in commons. This is my personal view taking into consideration why people buy the different class shares and the typical rules and corporate bylaws that apply to them.

I don't think government wants to change or handicap any share class unless absolutely necessary or if that share class poses a a problem for the recap plan.

So folks who are saying par and par plus or multi common share conversion on pref shares are not seeing the big picture, in my opinion. The potential for upside in the commons can not be determined, but I believe it will be nice after release and holding a few years. I can not say the same on pref's and I beleive this is why they keep saying conversion. Which I think a new BOD would be responsible for, especially if the current SCOTUS case about the constitutionality of HERA is found in our favor. Too many variables open right now for any type of predictions, honestly.

As cases are adjudged we will know better the outcome I think.