Fannie Mae (FNMA)

[Robert from yahoo bd]

One of my biggest concerns is that Basel capital standards HAVE NEVER BEEN USED in the gses 50 yr history, and that consistent with the WH/UST September 2019 Housing Plan, MC/SM/WH are setting the runway for a world of multi guarantor MBS issuers with Government Guarantees.

But this approach has been considered, debated, and ultimately rejected by the American people through their representation in the US Congress.

Capital Ratios of 4+% will have serious consequences by making the gses take on more risky loans to try to get a decent market competitive return for their equity holders, unable to compete effectively on low risk loans, and will increase housing costs by forcing the gses to raise gfees.