Fannie Mae-No Politics (FNMA)

[HoldenWalker99]

Consent decree is executed in court.

You’re confusing it with a consent order.

A consent order is a regulatory tool between a regulator (FHFA) and regulated entity (GSEs) that will allow the GSEs to access capital markets.

Treasury does not need to sign off on a consent order, but they do need to sign off on release from conservatorship per Section 5.3 of PSPA, which would be in 2-4 years when the GSEs hit the minimum capital requirement unless Section 5.3 is amended or Treasury consents to release at certain capital milestones.

If a consent order is not signed, FHFA would need to make other concessions to let the GSEs raise third party capital.

There are many options. A long, slow recapitalization is not one of them. You’ll see.