Fannie Mae-No Politics (FNMA)

[DaJester]

"At that point the LP will stop increasing. Your sentence suggests they would have to pay both."

They would need to pay the 10% annual dividend rate (or NWS whichever is lower), and then they still need to pay off the SPS LP by dilution (according to you and others). Is that not paying both a higher dividend AND the higher LP amount itself? Prior to the NWS in cash, and the NWS in LP, they would just pay 10% of a smaller LP amount.

The 2.5% quarterly on the growing LP could in fact be larger than all the quarterly profit earned. It's a worse situation than if the NWS didn't happen. So you can claim all these efforts are "helping" the GSEs but I think that's just an ignorant stance. Not a single entity, corporation, or person would think this helps their financial situation.