Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi Glenn

It looks like the UST is using FASB 157 valuation metrics for its balance sheet. Not sure why the GSEs are not doing the same for the SEC filings.

https://en.wikipedia.org/wiki/SFAS_157

If UST loses in Collins or Rop it will have to significantly mark down the SPS according to FASB 157 since it is a Level 3 asset. It is probably worth asking FNMA in particular why its valuation of the SPS is different than its investor's - the UST.

Really interesting since a lost in court could force the GSEs to start writing down the SPS until there is a final outcome due to exit or at SCOTUS.