Fannie Mae-No Politics (FNMA)

[LuLeVan]

For a new Rep Administration, however, there would be an even greater incentive (according to the Parrot paper) to release FnF. The new GSE boards could push yields (ROE) up to 14% by further increasing G-fees. Costs would plummet because the FHFA overhead would be reduced. That would be welcomed by the (new) private FnF investors because they get higher dividends. But also Wall Street's TBTF banks would be pleased because FnF would become less fierce competitors. The differences between the primary and secondary mortgage markets would narrow significantly.