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Re: LuLeVan post# 741334

Tuesday, 11/29/2022 6:43:56 PM

Tuesday, November 29, 2022 6:43:56 PM

Post# of 747265
Well, the reality is the GSES book of business is as strong as it has ever been.

Even with a 20% to 30% downturn in US Housing prices, the GSES will have Guarantee Fee income coming in so long as 80%+ of mortgagors continue paying on time.

I'm not sure why some think that the Litigation will disappear if a capital raise is done. Multi Billion dollar litigation just takes time and will likely quell Wall Streets appetite for newly issued GSE equities.

Besides, the status quo is acceptable to most parties with the exception of the jilted Shareholders who currently have zero economic rights in the GSES.

Sandra L Thompson can say, "At least with the status quo the GSES are retaining capital in a 1st Loss Position to absorb future loses and that would reduce taxpayer risk.", can't she?

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