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Re: Donotunderstand post# 758828

Tuesday, 07/04/2023 9:27:31 AM

Tuesday, July 04, 2023 9:27:31 AM

Post# of 796168
The UST and FHFA's major #1 issue is that they don't have to 'bailout' the GSE'S ever again.

I believe HERA mandates a 2.5% minimum Capital Ratio and MC and SLT have elevated it to 4% or more.

But for the Net Worth Sweep, we likely could have been released already. The courts have treated us with adverse rulings so far and may or may not result in more Capital in a 1st Loss Position to the Corporations in the future.

Since GSE MBS is so integral to the integrity of the US financial system and the Capital of the Corporations was reduced to near zero from 2013-2019, we will likely have to wait for the Capital in a 1st Loss Position to build up to 2.5% or more before the current administration begins to think about release.