Fannie Mae (FNMA)

[JOoa0ky]

You need to understand what has changed.

Prior to conservatorship... the GSEs were eating up the mortgage market's business for breakfast. All the opposition didn't like that.

Their solution was to take FnF out of the game... aka conservatorship.

The status quo has worked well for the industry for a while but things have changed.

At the moment... The GSEs in conservatorship being forced to do all of these affordable housing initiatives is becoming detrimental to the opposition's businesses bottom line.

Now the situation is such that keeping FnF in conservatorship is MORE harmful to them than having them privatized. It is THIS reason that David Stevens has changed his tune.


You know what this is going to evolve into right?
- It's not about FnF being in conservatorship...
- It's not about shareholders' justice...

FnF is going to become a proxy war among the Dems/Repubs/Mortgage industry on what housing should be.

Agree on Congress but whoever bought Corker Bush Paulson to make them place GSEs in c-ship and use them for the recovery for 2008 (see backdoor bailouts) now has Republicans asking for release from status quo.

On the other side, the Dems seem to like status quo (as voiced yesterday), with the $ and ability to use GSEs for social projects. Maybe each side just likes being contrary and Reps are trying to make Dems look bad - and nothing material will happen.

At least, there seems to be a shot with getting Republicans to move.