Fannie Mae-No Politics (FNMA)

[kthomp19]

Why not just let the $187B ride, and collect the 10% on that? Is the conversion even necessary?

The conversion is the only way, under the current agreements, for Treasury to get any cash before 2040 or so.

By the time they are released, GSEs may be able to send the first $19B to Treasury and slowly redeem the LP after Treasury's commitment is ended.

Only if Treasury agrees to amend the contracts to allow such redemptions. The seniors are and have always been non-repayable while the funding commitment exists.

As HappyAlways points out, if the NWS clause is removed, the $187/191B isn't really an issue retroactively. The LP should already be paid.

Except that HappyAlways is wrong, as usual. FnF never had the ability to voluntarily pay down the seniors without Treasury's permission, and that permission was asked for and denied in the past.