"Whatever the dilution would be wouldn't matter without the warrants being exercised."
Uhm...yes, dilution matters...alot. Heavily diluted stocks almost NEVER go up in value.
"Tim Howard is absolutely the most expert source available today."
I just threw up a little in my mouth. Perhaps he's the most expert source available for blind pumping...but for reasonable discussion and expectations for the GSEs' future, I wouldn't even include him in the conversation.
"Utility model would make the most sense and it would be a positive."
I'm curious...why do you feel this way...or are you just repeating what Howard said? I can give you half a dozen reasons why the Utility model would be bad for the pps and home ownership as a whole. While I can also give you half a dozen reasons why it would be good for the pps and home ownership, I'm curious if you actually have an opinion or if you are just repeating what you heard.