Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Politicians aren't going to start experimenting with the plumbing of the backbone of the US $15.5 TRILLION DOLLAR residential MBS market.

If the party in power ends up doing irreparable damage to the financing mechanism of American Families biggest asset on their Family Balance Sheet, what do you think will happen at the polls?

Seems less risky to allow the GSES to build up Capital organically, win in 2024 and cash out in the 2nd term.

Besides, the $7.5T in GSE MBS is an integral part of the low capital required risk assets help on US banks, financial intermediaries and world markets.

Right now the US TBTF banks have about 1/2T in UNREALIZED LOSSES siting on their Balance Sheets.

https://www.fdic.gov/news/press-releases/2023/pr23072.html#:~:text=Total%20Deposits%20Declined%20for%20a%20Fifth%20Consecutive%20Quarter%3A%20Total%20deposits,lower%20levels%20of%20total%20deposits.