Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi Robert and Guido - The 2020 CBO Report is what the Raneri and Calhoun opinion piece is based on. You can see the various scenario valuations based on assumed capital requirements.

https://www.cbo.gov/publication/56511

The base recap timelines are a public float in 3 years or 5 years with NO NWS until then. JPS get paid at PAR at some undetermined date and there is some settlement with common.

This is Pelosi's CBO and perhaps there will be an incentive to put part of the GSE stake for public housing? There is no discussion saying that a continuation of the NWS would be the best outcome. There is a paragraph on the bottom of Page 18 which will allow the UST to recognize 50% of expected profits if legislation is just INTRODUCED.

Maybe things have changed post Collins which will prompt JB to go back to the NWS with and indefinite conservatorship? It seems that they could accomplish what they want with a Utility based Recap and Release in line with the CBO analysis?

Thanks again to your both for your continued efforts on behalf of shareholders!!