Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Do you think that the 4th Amendment was enacted to deny the new administration access to free money and continue shrinking the gses footprint or was it done to eliminate the chance for prospective relief in Collins (which the SCOTUS bought hook, line, and sinker) or both?

I think it was done to actually start the process of recapitalizing the GSEs....and the GSE's footprint certainly isn't getting smaller. I think the NWS was done because some big brains (sarcasm) in government thought F&F could be wound down (and the NWS was intended to recapture some, possibly not all, of the government's loan via the SPS, but we know how that turned out). But there is no way in hell the politics will allow an actual free market approach to housing financing....in other words...the politics need F&F so that people who shouldn't or wouldn't be eligible for a conventional loan can get a cut rate 30+ year mortgage. You know, the American Dream.

The new administration has an unlimited printing press. What the government has stolen from F&F with the NWS is peanuts to them. They don't care about peanuts.

And certainly the 4th Amendment effectively mooted prospective relief.

The real question is what are they angling for with the increase dollar for dollar in the SPS liquidation preference in the 4th amendment. And I think the answer has to do with hedge fund billionaires who loaded up on commons. The politics of the end game.....exit from conservatorship.