Fannie Mae-No Politics (FNMA)

[FOFreddie]

We will likely see how the GSE stake is valued and if any revenues are expected from the sale of the GSEs in the new Budget. We should be expecting that the GSEs are working on their Capital Plans right now to submit to the FHFA by May 20th. Maybe there are no sales but this plan is required under the Capital Budgeting Reg adopted last year.

Here is the cite from last years POTUS Budget:


Wednesday, March 30, 2022 9:46:16 AM

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UST Values its GSE Debt at $221 bn in 2023 Budget. Warrants valued at $5 bn at the end of 2021. See page 143 and Footnote No. 7

https://www.whitehouse.gov/wp-content/uploads/2022/03/budget_fy2023.pdf

For the Fiscal Year 2022 - UST Treasury valued its GSE Debt at $ 109 bn and valued Warrants at $13 bn at the end of 2020. See Page 62 and Footnote No. 7

https://www.whitehouse.gov/wp-content/uploads/2021/05/budget_fy22.pdf

Change in one year was $112 bn increase in Debt and $ 8 bn decrease in warrant value.

How did the value of the UST Debt Stake increase by $112 bn? Why did debt go up and warrants go down in value. Looks like they are using market price of GSE public stock to value warrants.

Dont think Receivership is on the table. UST Stake is currently valued at $ 224bn in the White House Budget. 20.1 pct of 224 = $49.5 bn. If the GSE equity is just worth the implied value of $ 5 bn = GSE public equity is worth $ 1.25 bn. $ 224 bn more for UST and just $ 1.25 bn for GSE equity or $49.5bn?