Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

The problem is running/working at an ideological think tank that promotes a certain set of values and being the fhfa director are two different worlds.

We saw MC do a 180 on several occasions from what he espoused in his papers at CATO.

I think affordable housing advocates would trade off the twins long term profitability for low down payment high risk loans in a heartbeat.

They can force the gses to buy these high risk loans at low guaranty fees and the best way to do that is to be 100% in control and remember PEOPLE IN POWER RARELY WANT TO PART WITH THAT POWER!

I'd rather see Mike in there BUT JB has really pressed the accelerator to the floor on filing head of governmental positions with diverse people and it will be interesting to see what happens.

Remember the current administration can choose to do nothing BUT if they don't get their big housing spending bills through Congress, they seem likely to try to monetize their positions in the gses and perhaps come to a settlement with the litigating shareholders.