Fannie Mae-No Politics (FNMA)

[chessmaster315]

Again, this is not news. We already knew fannie had one time settlements, and is unlikely to earn $84 billion per year every year.
We also know that there is some weakness in the housing market especially in some areas, with many still struggling to recover. Often it takes a long time to foreclose, so these properties go on the market months, or years, later.

At least some of these will be snapped up with increasing housing prices. Phoenix, for example, is enjoying a housing boom.
http://www.myfoxphoenix.com/story/22125523/2013/05/01/property-wars-star-shares-insight-on-phoenixs-booming-housing-market

While Phoenix has softened more recently, we will see other hard hit areas come back. Phoenix, and other warm areas, can often lead because retiree's are looking for a warm retreat.

Dont let fear rule you, and sell. Sure, it may drop a few pennies, or even more. But, you will have unsettled funds with which to buy it back if you sell now, and may well wind up paying more or getting fewer shares later.