Replies to post #376229 on Fannie Mae-No Politics (FNMA)

[obiterdictum]

As we travel the hills and valleys toward our mountain destination, there are plenty of things to see.

Some sights to take in during the next 115 days on the GSE train:

1. The President and the new White House administration will examine and/or consider retaining and revoking President's Obama's executive orders, including Executive Order 13489 - Presidential Records and other executive orders.

2. The Department of Justice show. The DOJ has a lot on its plate and the US Attorney General will have to get the DOJ in order. We will be able to observe that change in tone and tenor of the DOJ and possible and actual impacts on the GSE court cases and judicial discretion. There will be, perhaps, 93 or so US Attorney appointments and/or reappointments.

3. Court cases speeding up and with decisions in 2017.

4. If Steve Mnuchin is confirmed, then we look for the beginning plans and efforts how this statement by Mnuchin will be carried out:

“It makes no sense that these are owned by the government and have been controlled by the government for as long as they have. In many cases this displaces private lending in the mortgage markets and we need these entities that will be safe. So let me just be clear— we’ll make sure that when they’re restructured they’re absolutely safe and they don’t get taken over again. But we gotta get them out of government control.” - http://www.foxbusiness.com/politics/2016/11/30/steve-mnuchin-time-to-jettison-fannie-mae-freddie-mac.html Mnuchin also said the incoming administration “will get it done reasonably fast.”

The new Treasury Secretary can quickly and greatly influence and work to change the provisions of SPSPAs, the net worth sweep, capital reserve reduction, senior preferred stock, warrants and more.

5. Other theater productions to watch are:

a. The Senate and House ramping up of the 115th Congress - vetting and confirmation hearings of Trump cabinet and other selections, Obamacare, Congressional control of federal regulations, corporate, tax rates, proposed infrastructure legislation, Dodd-Frank financial regulations reform, immigration reform and border wall issues, pipeline legislation, alleged Russian hacking of the US election, etc.

b. Fannie Mae and Freddie Mac 4th quarter and annual reports and releases - 10-Qs, 10-Ks and 8-Ks.

c. Media negative hype and positive support.