Fannie Mae-No Politics (FNMA)

[kthomp19]

“The unpaid principal balance of our aggregate indebtedness was $130.7 billion as of September 30, 2023.” NOTE: indebtedness. Not equity.

The indebtedness they are referring to is not the senior preferred shares.

It is referring to Section 5.5 on page 9 of the Senior Preferred Stock Purchase Agreement.

This is pretty disappointing, even considering your dismal track record on the facts.

If it was an equity investment, Fannie Mae has always been capitalized

FnF must have enough core capital to meet their regulatory capital standards in order to be classified as "adequately capitalized" by 12 USC 4614(a)(1)(B).

The definition of core capital in 12 USC 4502(7) does not include cumulative preferred shares.

The seniors are an equity investment, but they are not core capital because they are cumulative preferred shares.

Therefore you are, for the millionth time, absolutely wrong.