Fannie Mae-No Politics (FNMA)

[LuLeVan]

The news is actually bearish because it will worsen the credit quality of FnF. There will be more defaults in the future. FnF, as quasi-governmental companies with "private masks", churn out social welfare programs of all kinds - paid for out of scarce company assets urgently needed for recap. Normally, taxpayers would have to pay for such plans (if Congress approves them at all). The basic problem is that FHFA can bypass Congress to authorize such actions. This is because of FHFA's unconstitutional funding.