Fannie Mae-No Politics (FNMA)

[FOFreddie]

More Positive from the Dec 16th Rulemaking Notice

Page 14 " The proposal has changed the calculation method slightly by considering an Enterprise's planned common stock dividends...."

Page 18 -

" Capital action means any issuance of a debt or equity capital instrument, any capital distribution, and any similar action that FHFA determines could impact an Enterprise's consolidated capital."

"Capital distribution means a redemption or repurchase of any debt or equity capital instrument, a payment of common or preferred stock dividends, .... and any similar transaction that FHFA determines to be in substance a distribution of capital. "

Perhaps we should be concerned with the reference to "any similar transaction" reference but it seems illogical that equity could be raised in a "Capital action" and the NWS could be a possibility going forward after a Capital action