Fannie Mae Preferred S (FNMAS)

[44centsAKAchoccake]

"Reforms they want."

What reforms do they want? It's hard to know. The official line is that FnF have to go, but do they really care about that? I doubt it. Not if there is a strong constituency that actively does not want to happen. It's all smoke and mirrors. (But, DeMarco did want for FnF to be gone in the long run so it's great that he's gone as acting director).

Maybe a little more forgiveness and/or forebearance? Most of the money for that comes from TARP so it doesn't cost FnF much if anything. They may take a tiny hit in the short term but they'll do fine in the long run. Plus, it could actually benefit the real estate market so it could be a plus over time.