Fannie Mae-No Politics (FNMA)

[FOFreddie]

First of all Thanks!! for all you do on this Board for fairness.

My concern is that we need to survive the Motion For Summary Judgement and I am concerned about the rationale that was used to overturn Sweeney's Derivative claims holding at the COFC. Otherwise the REMAND is good just because it will give more time for all the outstanding litigation to develop while we expect UST to come up with some report or possibly a proposal to move forward with the Calhoun white paper affordable housing subsidiary.

Also - under the Capital Planning regs which were just published in the CFR - the FHFA needs to come up with a Capital Budget that moves the GSEs towards meeting it required risk capital levels.

Perhaps Glen knows what the plans are but if a proposal from UST is going to have a chance it needs to happen soon. JB is approaching 1.5 years into his term and faces losing control of the House and Senate. The Senate Banking Committee could be chaired by Tim Scott in the next Congress.

I am thinking this devolves into a political issue and hopefully DJT will raise the JB UST proposal as nationalization and socialism many times as it evolves.