Fannie Mae Preferred S (FNMAS)

[JosephS]

Yes. There were no repayment terms stated although prior conservatorships(there are very few examples and none like this) allow for them to be released once supposedly deemed "safe". As we all know(or we all believe), they were solvent, just not liquid (or deemed safe)since the mortgage markets were locking up and even those with exceptional credit had a hard time getting loans in the regular marketplace because of the liquidity problems. Like many have said, here..... This(FNF and the basically unlimited funding) was set up as liquidity (dumping ground if things went bad) to provide liquidity in the mortgage markets just like 1938 when Fannie was founded. There was a specific interest rate on the senior preferred, though.

again, in all other cases of c-ship(that I have researched), the entity was released. not a recco to buy or sell....