Fannie Mae-No Politics (FNMA)

[Sogo]

Obit, I think CSP could not adequately replace FnF. But I'm not an expert on such detailed matters, and it's interesting that, as you pointed out a week ago or so, that so far there appears to be no solid legal reason that the CSP could not be chosen to replace FnF.

If reason prevails in the final legislation, I imagine that the CSP will be a separate entity that improves efficiency, and FnF will survive in some reduced capacity, which would still be great for current common shareholders (unless I'm failing to account for some crazy possibilities). If reason gives way to extreme cronyism (a legit concern these days, I think), then a range of possibilities could result, including perhaps the CSP replacing FnF. But I doubt DC will go that far. However, the banks' (huge donors to politicians) will, and the surface political appearance that slaying the "evil" demon named FnF would grant some undeserved hero status upon politicians are two reasons to be a little cautious here. If only FnF could unleash their own lobbying efforts, we'd have another thing on our side. It's clear that they and the entire private mortgage / housing industry wants to keep FnF in place even after reform. Thanks again for all of your extremely helpful info, insight, digging, and sharing. I wish I could bring more than this relatively "soft" analysis to the board. Hopefully it at least helps some to think through all of this.