Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

The most effective way would be for Fitch, Moodys, and S&P bond rating agencies to recognize the defacto nationalization.

There's approximately $100B capital in a 1st Loss Position cushion currently and still growing organically plus credit loss reserves as well as incoming guarantee fee payments when the inevitable down cycle hits in the US residential housing market to absorb potential losses.

So it's unlikely that the entire $7+T in MBS liabilities would be recognized on the federal government balance sheet but as I recall CBO recognizes it's a risk to the federal government and US taxpayers.