Fannie Mae-No Politics (FNMA)

[bmp152]

I completely agree with your assessment mefence, with one exception: I think Fannie still has ~$8B in DTAs left to take. I'm not sure if they can be used more than once per year though.

Does anyone think the reason that Freddie did not take DTA this quarter is so that they WILL be net zero next quarter? If they had taken it this Q then they would have been a few B shy.

Also, I'm wondering if the decision was not a "f*ck you" to the Treasury. The national debt limit will be reached by Labor Day so Congress is going to have to deal with that decision soon. Had Freddie taken the DTA, that extra $30B would have likely delayed talks on the debt ceiling further. Again, if Congress is busy fighting over budget decisions, less time to worry about housing reform. And before we know it, whoops, net zero!