Fannie Mae-No Politics (FNMA)

[LuLeVan]

Lule, yes we would probably still need a capital raise to get there but not in the amount that we are seeing now.

A release now (with the SPS either written-off or converted) would still require a capital raise of approximately 2 x $70 billion (this is the maximum allowed under the 4th Letter Agreement). In addition, the capital requirement would have to be reduced to 2.5%. If it stays at 3%, a release would not be possible for another 1.5 years.