Fannie Mae-No Politics (FNMA)

[Wise Man]

***BREAKING*** FnF are only $1.3 billion short of the 25%-of-Buffer threshold to resume the dividend payments, not $4 billion mentioned before. I have changed the method to calculate the Total Capital requirement, now based on the Leverage or Minimum Capital, because it's a metric higher than the Risk-Based Capital requirement and thus, it's the lead metric. It was also used by FMCC when it posted its estimation of Total Capital in the 1Q2021 results. FnF did not post an estimation with their 2Q results, this is why we have to extrapolate their estimation posted in the 1Q. The Leverage Capital is the minimum amount of required Core Capital, but the C.C. is equal to the Total Capital when there is no TIER2 Capital, like with FnF. This is why Leverage Capital is also a Total Capital requirement, like the Risk-Based Capital requirement. It's calculated (2.5%+1.5% of Buffer) x Adjusted Total Assets. So, the only unknown is the Adjusted Total Assets and we take the figure of the 1Q. The Adjusted Total Assets in the 1Q were 16.7% and 18.5% higher than Total Assets, for FNMA and FMCC, respectively. Assuming that this percentage is the same in the 2Q, we calculate the Total Capital. The combined amount is $205.5 billion. It means that, with the Secret Plan, FnF would have $30 billion Total Capital Surplus as of end of June 2021 (Adequately Capitalized). That's 24% of the buffer and the threshold to resume the dividend payments is 25%, that marks the date when the JPS would fetch their par-value.