Fannie Mae Preferred S (FNMAS)

[rosen62]

So, why are they still in C-ship?

C-ship is the best thing that has happened to us, so far. It is *the* shield against Congress. As it is now, only FHFA and Treasury have a say on anything related to Fannie and Freddie. Should conservatorship go away, say DeMarco releases them, Congress could immediately decide on their fate. And to our detriment, possibly.

Congress could only act on the GSEs by modifying HERA 08' -which is highly unlikely, if not impossible- or if they come up with a new Law which appears to also be unlikely.

We should thank DeMarco for each new day we wake up under c-ship. At least until the companies can somehow be recapitalized or be allowed to because then we will also be safe.

And I will add this. Once the GSEs become net zero it will be like crossing the Rubicon: Alea iacta est. This too will put us on the other side. All thanks to being protected under c-ship.