Fannie Mae-No Politics (FNMA)

[GAK-]

Didn't Moelis suggest turning off the NWS back in 2018 and retain earnings until regulated minimum first-loss equity is built. Isn't this basically what has been happening over the past 12 months? I think Moelis calculated that at $67B back then.

My guess is that the capital plans will follow a similar kind of pathway. Grow equity to regulated minimum first-loss capital ($70B), then at that time partially equitize the JPS, then do a capital raise. All of this will be laid out in the consent decree. It could be accelerated by a return of $30B from a settlement. That would give FnF:

NW at the end of Q4 - $40B
Settlement $30B

Total $70B

Assuming the SPS is considered repaid (per comments like Craig Philips), then then the common would rise to a level of $14 (20% of $70B).