Fannie Mae-No Politics (FNMA)

[HappyAlways]

Don't think you really understand, when you said "They stopped the sweep in 2021". NWS was not stopped at all. Instead of paying UST, the GSEs are allowed to keep their earnings to strengthen their capital position since 2021. But at the same time, the amount they kept are added into their Liquidation Preference dollar-for-dollar. When things resume normal, Fannie and Freddie are required to pay 10% of their LP as dividend annually. (This is clearly stated in the Amendment Letter). The GSEs repaid $310B upto 2021, yet their loan balance keeps hiking. That's why some call NWS a highway robbery. NWS is a clear case of illegal taking of private property.