Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Pretty sure he's saying that with the higher Capital Ratios under Basel III, the regulated banks will become even less interested in the Primary Mortgage Market (and keeping 30 year FRM'S on their balance sheets) and will continue ceding Mortgage Market Share to the much less regulated nonbanks, like Rocket and UWM, hedge funds, and other less regulated financial Intermediaries.

This should increase the spread on 30 year Fixed Rate Mortgage's over the 10 year Treasury, thus making the cost of homeownership higher for American Families.

Our brilliant dear leaders will have an epiphany that denationalizing and privatizing the GSES will bring more competition for 30 year FRM's and American Families needing housing will get some relief.