Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Dick Bove is very familiar with the historical interactions of the US Government coming in to assist with homeownership in the United States during times of housing shortages (e.g., post WWII). He probably envisions the current or future administration monetizing the twins to help in that area, but with the scars of the GFC still in the rearview mirror that type of major governmental intervention may not be politically feasible.

Senator Mark Warner asked Jerome Powell earlier last week at the SBC about a 20 year FRM program going through HUD to help minority groups gain equity faster, but that seems like they will use the FHA to subsidize these social housing programs as the gses capital has been depleted so badly for the last decade.