Fannie Mae-No Politics (FNMA)

[LuLeVan]

In the past, there were too many legal and financial (lack of equity) barriers to FnF's release. Meanwhile things have improved: Since 2019, FnF have been gradually building equity, and with each lawsuit the plaintiffs lose, there is one less legal hurdle for an administrative solution.

After the Scotus ruling there are also increased political dangers for Biden and the Democrats. A new Republican administration would immediately fire FHFA Director Sandra Thompson and replace her with someone who would implement their agenda. This helps to speed up matters. Biden would not only lose the up to $100 billion that he could use for affordable housing. He would also be unable to prevent the Republicans from putting their political stamp on the GSEs in the wake of a release. I.e., Republicans would most likely try to keep FnF's business volume small so that TBTF banks get a bigger mortgage market share. Affordable housing, too, is something Republicans don't care about. They'd rather spend the money on higher und stronger fences on the Mexican border.

Counter argument: If 8 years of Obama can leave it for the next government (Thinking that it could be Hillary or Trump) and if 4 years of Trump can leave it for the next government (thinking that it could be 4 more for him or a new Biden) then Biden can also leave it to the next government to solve (thinking that he will get 4 more years or may be a 8 years of Republican president)