Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

Donot - that is a good question and I'll give you a simple non-lawyered answer.

If FnF are out of conservatorship without some kind of "agreement" with the gov, and any unforeseen adverse events happen, e.g., a more deadly covid19 strain, then all of the "critically undercapitalized" events defined by FHFA/HERA could trigger unwanted action, e.g., receivership.

Now, those unwanted actions could be circumvented via regulatory changes, but why risk those things by releasing FnF prematurely?

More capital needs to be retained before release can happen via a consent order. Mnuchin said it plain as day.