Fannie Mae-No Politics (FNMA)

[kthomp19]

Without a ruling we’re basically recapitalizing our self in four years if they make 20 billion each a year.

Nope. That's exactly the incorrect thinking that the Twitter thread proves wrong.

FnF's capital requirements are a percentage of their asset base. That asset base is growing fast enough that retained earnings aren't shrinking the gap between FnF's capital on hand and its regulatory requirements at all. That's why, after running the numbers, the share price between a 2023 capital raise and 2025 capital raise isn't much different.

After that it’ll be like who needs a conservator their loaded.

Yes, that's the point. But it will take a large capital raise to get there; retained earnings are only keeping pace with the rising capital requirements, not making progress towards them.