Fannie Mae-No Politics (FNMA)

[kthomp19]

So, what is really stopping the two companies from being released?

It's simple: a lack of regulatory capital. From page 125 of Fannie Mae's 2024 10-K:



And on page 94 of Freddie Mac's 2024 10-K:



The shortfall to the capital requirements is in excess of $100B for the core, Tier 1, and CET1 capital requirements for each company. Their actual regulatory capital levels are negative.

If FnF were to be released right now, the FHFA director would be forced by 12 USC 4614(a)(4) to classify them as "critically undercapitalized", and by 12 USC 4617(a)(3)(K) could put them right back in.