Fannie Mae-No Politics (FNMA)

[Guido2]

Fannie Valuation as of 9/30/2021
Equity per latest 10Q $42.2 billion
Allowance for loan loss $6.3 billion
Unamortized G-Fees $27.3 billion

Fannie value based on Equity = $75.8 billion

Fannie 2020 earnings $11.8 billion
Conservative multiple 12

Fannie value based on earnings = $141.6 billion

Fannie total value $75.8 billion + $141.6 billion = 217.4 billion

Freddie Valuation
Equity per latest 10Q $25.3 billion
Allowance for loan loss $4.5 billion
Unamortized G-Fees $72 billion

Freddie value based on Equity = $101.8 billion

Freddie 2020 earnings $7.5 billion
Conservative multiple 12

Freddie value based on earnings = $90 billion

Freddie total value $101.8 billion + $90 billion = 191.8 billion

Bryndon Fisher is asking for a return of $26.9 billion after SPS is written down to 0. This would bring the combined equity to $217.4 billion + $191.8 billion + $26.9 billion = $436.1 billion

If David Fiderer is right and Fannie and Freddie did not actually need any bailout, it would be $217.4 billion + $191.8 + $109.5 = $518.7 billion.

For those new on this board, Patrick Quinn asked Mark Calabria to allow Fannie and Freddie to include the G Fees they have already received and not yet recognized as profit, as assets on their balance sheets. From my investigation, this was the practice prior to conservatorship and early on in the conservatorship. The only reason it shouldn't be on the balance sheet is to prevent it from being swept to the Treasury.