Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks for all your time to explain the JPS conversion issue NATS. It should be noted that Ackman included full conversion of JPS in his assumptions. Even at 2.5% ERCF levels which are low there will be a need for new CET1 equity and a JPS conversion would be as good as or better than selling new equity to meet the ERCF required capital levels. It should also be noted that Wazee, Lamberth, Bhatti and Ropp are all outstanding JPS suits that probably need to be settled in 2025 before an exit and negotiated JPS conversion terms are likely to be included in the settlement. If the DOJ decides not to settle - these suits probably will get appealed one more time and it would be hard to proceed with the EXIT plan in a timely manner. Dilution is highly likely - FMCC and FMNA have included the warrants as shares outstanding in their respective 10-Ks and DJT mentioned how the US Taxpayer would make a lot of money in his letter to Rand Paul and there has been a lot of discussion about how the UST stake in the GSEs could be used as budget offsets or as seed equity for a SWF. There is only one suit outstanding focused on common shareholders and that is the Bryndon Fisher Derivative Suit - does anyone know what the status of the warrants would be if that suit was successful? This suit - like the others - are all on thin ice and there only leverage is the potential need to settle for a quick EXIT. Personally, I am hoping for a complete SPS write-down where the UST only gets 79.9% of the equity - I am not saying it is fair but if this allows for a quick EXIT - it would be more than worth it.