Fannie Mae-No Politics (FNMA)

[LuLeVan]

On the 2nd and 3rd page of his newsletter (that I've read on Twitter) Hindes writes that FHFA recently hired people known to be committed to early recap/release.

Hindes also cites "$100 billion to $150 billion" that the government could get monetizing its "investment". A bit high, I believe, because he only mentions warrant execution, and warrant execution alone could yield a maximum of $80 billion. $100 billion (or more) probably requires a SPS-to-common-conversion, which Hindes may not have mentioned out of political consideration.

Hindes expects recap/release to take place before the end of Biden's term, and that Biden will spend the money on affordable housing. That, he wrote, is the only chance Biden has to get something big done in his lame duck period. HERA helps, because recap/release could be initiated by a mere letter agreement between FHFA and Treasury.