Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

I am of the mind that cross-subsidization can be an economic net positive; Tim Howard thinks so.

I do think the nature of the ‘thumb on the scale’ is now more politicized than ever, in part because of Collins v Mnuchin.

But even so, the increase I am imagining might not be subjected to a cross-subsidy. It could turn out that a bp hike is simply added to its matching risk bucket.

In the end, FnF are supposed to compete. I hope they are free to adjust their prices on the fly to match risk, without a constant meddling thumb on the scale. We’ll see.