Fannie Mae-No Politics (FNMA)

[Wise Man]

Summary of a Taking + Resale scenario.
First of all, the JPS are redeemed at their par value after FnF surpassed the threshold CET1 > 2.5% of Adjusted Total Assets in the third quarter (Separate Account plan), which means that they'd meet Tier 1 Capital > 2.5% of the ERCF and the AT1 Capital (JPS) is no longer necessary.
Then, the common stocks are bought out at the BVPS (Price to BV ratio=1)
If there isn't a Taking, the existing shareholder takes the place of the Treasury Department in the table.
The prospective buyers acquire FnF at an effective PER 14x under a Privatized Housing Finance System revamp scenario (no TCCA fees/CRT expenses), although an increased price offered to Treasury reflects the value of the Deferred Income, net. Once the DI is amortized into Earnings in one fell swoop (Accounting Standard change of the upfront g-fee is necessary), it's a gift, so they can recover the increased price paid through a dividend, or it stays in the business.
Twitter thread: Prices and stock valuation in Q3.
Below, the same in Q2.

TAKING +RESALE +JPS REDEEMED:$349B PROFIT
+$14B extra Corp. Tax(Deferred Income)$FNMA/ $FMCC
Price;PER;BV;Mkt Cap
-Existing shareholder
$112/$164;6/7;1/1;$130B/$106B
-UST
$288/$388;15/16;2.6/2.4;$333B/$252B
-Buyer(Amortization of DI)
$273/$335;14/14;2.4/2;$317B/$218B#Fanniegate https://t.co/tbtoa5ax4v pic.twitter.com/dcp0KhYtu4

— Conservatives against Trump (@CarlosVignote) November 3, 2023