Fannie Mae-No Politics (FNMA)

[FOFreddie]

The CBO Paper has one Scenario which is closest to the current regulatory capital requirements at 3 % where the Legacy Common is worth $14bn ( Table 2 Scenario 1) for in IPO starting in 2023 and $ 27 bn (Table 3 Scenario 1) For an IPO starting in 2025. The Equity Value for the GSEs is $ 402 bn.
Assuming FMCC is $ 150bn of the $ 400 bn - FMCC implied values are $8.07 and $15.77.

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

Just do the math for Scenario 1 for both Tables and you will see there is a residual value that is not broken out but equates to a 21.1./79.9 pct ownership upon which the UST Warrants are valued.

The last paragraph of the CBO Paper is also interesting because it mentions Farmer Mac and the Farm Credit System as being impacted by the restructuring of the GSEs. The Farm lobby and Rural Members of Congress should be very concerned about the Nationalization of the GSEs because the Farm Credit System could be next