Fannie Mae-No Politics (FNMA)

[Fully Diluted]

Hi krab,

We all know Joe Light and it’s hit pieces in the past. But this article is different. Joe writes that he does not consider receivership to be the likely outcome.

That the government would net more money in a receivership isn't dispositive. More so than the revenue Fannie and Freddie generate, the U.S. government has traditionally been more concerned about making sure the $10 trillion mortgage-backed securities market continues to function smoothly and at low cost. A receivership, even if the government committed to backing Fannie and Freddie's existing mortgage-backed securities, could give investors pause and drive up rates. Bessent in the past has said that ensuring mortgage rates don't go up would be the guiding principle in any reform plan.