Fannie Mae-No Politics (FNMA)

[kthomp19]

Is there ANY 'reasonable' chance that on an appeal that there COULD be some form of 'injunctive relief?'

No. The plaintiffs did not ask for any injunctive relief, the jury did not grant it, and 4617(f) bars it anyway.

Do you think the Defendants will appeal, or will they kiss their lucky stars that Lamberth severely restricted the amount and type of damages for a 'Bad Faith & Fair Dealing' lawsuit and pay whatever the jury awarded?

I don't see a reason for the government to appeal if the plaintiffs don't because the damages are so small, but the government has fought every lawsuit tooth and nail all along so they probably will appeal anyway.

What is currently making the Rounds in Washington is the possibility of Biden/FHFA/Treasury 'ordering'/setting up for F&F to purchase mortgages/mortgage securities off-balance sheet like they did in the '90s and 2000s up until Conservatorship. Presumably to lower mortgage rates. CAN Biden accomplish this without F&F (formally?) exiting Conservatorship?

Yes, pretty easily. Biden can direct Sandra Thompson to direct FnF to buy MBS, and if Thompson refuses he can fire her and replace her with someone who will do what he wants. I don't see a link between FnF buying MBS (in order to lower the spread between mortgage rates and Treasury bonds) and them being released from conservatorship.

You also stated that given the Mnuchin negotiations you are no longer expecting 'par' for F&F's JPS. How low do we go IYO?

A senior-to-common conversion like the one Mnuchin proposed would involve both Treasury and junior pref holders taking an equal percentage discount on their respective liquidation preferences. If it had happened in late 2020 the haircut would have been huge (70%), but now it would be more like 50% and will be something around 30-40% by the end of 2025.