Fannie Mae-No Politics (FNMA)

[JOoa0ky]

IMO that wasn't the highlight of TH's response, this was:

"So I think the significance of Dave’s epiphany is that he does realize, and now is willing to say, that what the big banks have been able to get Treasury and FHFA to do with Fannie and Freddie since the financial crisis IS beginning to have negative repercussions on primary market lenders (here, via the LLPA issue), and he doesn’t like it."

That's a catalyst for Recap & Release.

The conversation needs to shift from whether or not they should be released to...

Who will be the new owners of FnF.

Hint: It won't be legacy commons.

Latest from TH: "But when FHFA then says Fannie and Freddie must raise the LLPAs on loans to higher-income, better credit-score borrowers to (slightly) lower the fees on affordable housing loans, well, THAT’s a problem. No. The problem is making Fannie and Freddie’s sole business non-economic in the first place. And if the LLPA looniness gets more people to focus on that– including in the Biden administration–that will be a good thing."

From 04/22: "If FHFA really wanted to “advance [Fannie and Freddie’s] mission of facilitating equitable and sustainable access to homeownership,”?? it wouldn’t be imposing the equivalent of price controls on their business, it would scrap the Calabria capital standard, and replace it with a true-risk based standard that lets the companies price their business themselves, on an economic basis."