Fannie Mae-No Politics (FNMA)

[TRCPA]

There are a couple of months to readjust the FHFA/Treasury mindset. What we are seeing is the first stages of doing so. Although the negativity towards Calabria may depress investors in the short term, comments and adjustments to this process can and likely will swing the pendulum back the other way.

You know the mindset of the marketplace by now. Its run by fear and greed in the short term, and rational analysis in the long term.

This is just another blip in the long and winding road toward release and recap. Nobody yet knows how it will finish. But the timing looks pretty good to me. The real concern remains the economy, in my view. And that concern should be alleviated with a covid vaccine sometime near the end of the year. And that will release a tidal wave in the housing marketplace, months before the recap actually takes place.

So assuming the capital standards get adjusted appropriately.....more to the tune of what Maloni, Rosner and others have been saying....this is setting up quite well for legacy commons for the summer of 21, in my opinion.

And all of the above doesnt even scratch the surface of remedies that the courts are still pondering.