Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi Familymang,

I think your points are fair if the SPS is not set aside by the 5th Circuit and/or SCOTUS in Collins and/or Rop. Bhatti could also play out but will probably turn on what the 5th and/or SCOTUS does with the separation of powers remedies? Is that right - perhaps you may say this is low probability which probably is true but would be a major win for shareholders - commons in particular.

If the SPS Liquidation preference is set aside then 20 pct of the MV of the GSE Equity will accrue and increase for the benefit of Common. Kind of like that old song - Time is on my side.

More of an outlier would be a win on a derivative claim which would transfer some or all of the SPS Liquidation Preference back to the GSEs to accrue to the UST and Common on an 80/20 basis. Definitely low probability but Wazee and Brydon Fisher are going to spend the time and money to file for Cert. Waiting on what happens in Kelly. Thoughts?