Fannie Mae-No Politics (FNMA)

[FOFreddie]

JPS does not help meet the ERCF Tier 1 Equity requirements - either there is a new ERCF that is low enough to meet existing capital, they wait until earnings are great enough to meet an ERCF or they raise additional capital. The JPS lawsuits have been pushing for conversion for years and they are likely going to continue to push as part of a settlement. The FHFA could wait out the lawsuits but why would they want to wait - converting the JPS clears up the balance sheets and litigation and prepares the GSEs to EXIT.