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Unhombrealado

11/13/17 3:49 PM

#436780 RE: kthomp19 #436778

There are scenarios that prevent the draw. The Senate tax bill doesn't phase the corporate tax reduction until 2019, which would mean FnF could pre-allocate 2018 earnings to expected losses and so cover the DTA losses with their regular income. This would be favored by a switch to a yearly NWS instead of a quarterly one.

Or, FnF are allowed to retain capital as part of the next NWS, and the tax bill doesn't pass until early next year. Then, the GSE's could use 2 quarters worth of earnings and a lower tax bill to cover for the DTA writedowns.

Everything is still speculation at this point, but time will definitely tell.
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Pecker9Wood

11/13/17 5:33 PM

#436792 RE: kthomp19 #436778

So does the government budget for this draw?