Replies to post #418844 on Fannie Mae-No Politics (FNMA)

[rekcusdo]

I am an expert in mortgages and can tell you FNMA is not going anywhere.

I agree with you that FNMA is an EXCELLENT model for mortgages, and in an ideal world, they would go nowhere. But in an administration that is power-hungry and desperate for things to claim as personal victories, and with a party that is desperate to prove that they can make good use with a partisan house, senate and president, I could see rash decisions leading to horrible outcomes where they try to get rid of the GSEs even if it doesn't have good outcomes.

Mnuchin has close ties to FNMA and will restore to some capacity IMO. there needs to be a GSE for the bonds no matter what

I am not so convinced. It really wouldn't be all that hard for the GSEs to be replaced by a government entity (administratively speaking), especially if the government is dealing without shareholder pushback due to HERA. What the fallout would be,...well that's another story.