Fannie Mae (FNMA)

[Robert from yahoo bd]

Plus, as TH pointed out this afternoon about "the Zand", as a possible replacement:

"There are many rumors swirling around about a potential Fourth Amendment and what might be in it. Other than a higher retained earnings cap (or an indefinite suspension of the net worth sweep), I don’t have any good information about what else might be included in any amendment agreed to prior to January 20. On your capital question, no, the current FHFA Director cannot bind what a future director might do on Fannie and Freddie’s capital requirements.

As to the rumor that Mark Zandi might be on a short list for FHFA Director in the Biden administration, he wouldn’t be the worst choice. He at least has an understanding of the credit and financial dynamics behind Fannie and Freddie’s risk-based capital rule, and also of the problems caused by a capital standard that is disconnected from the economics of the companies’ credit guaranty business, as the current Calabria standard so obviously is."