Fannie Mae-No Politics (FNMA)

[Fully Diluted]

Hi Glen,

government to give away spspa for nothing

For nothing? Considering the SPS as repaid is the ultimate deal for the government. This is the only way to increase the remaining funding commitment by $189 billion to the original $445 billion without involving Congress. This is, where the true value lies, which is worth much more than the admin taking over 99% of the companies. It also makes it possible to lower capital requirements without losing the top rating from the rating agencies. This allows G-fees to be reduced as ROE improves significantly, leading to lower mortgage rates.
To summarize:
Considering the SPS as repaid helps to significantly increase the value of the Treasury’s stock in the companies. At the same time, this allows mortgage rates to be lowered.
Now ask yourself, what two goals do you constantly hear about from the admin? And then tell me how these goals, which at first glance appear to be a dilemma because they are normally contradictory in nature, can be achieved differently.

GLTY 😎