Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Voiding the SPS is also bad for the JPS because it is bad precedent which could be used to turn the JPS into a zero coupon type of cash flow structure in a consent decree.

My fear is that FHFA and UST enter into a Utility Model focused Consent Decree and leave the JPS in place with no divs until ultimate exit many years forward. Do you think that is possible.

New capital won't put their money in unless they know they'll be getting a DIVY.

New capital cannot receive a DIVY when a senior class (JPS) does not have DIVIES turned on.

Both, SPS and JPS need to be taken care of prior to a single dollar can be raised.