Replies to post #479155 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

I fail to understand the preoccupation with the Moelis Blueprint. Even the Moelis framers went to FHFA and stated the Agency needed to reassess their plan in the context of the Agency's priorities and by the Agency's own experts and advisors.

The White House is considered to be focused on naming an Acting FHFA Director and implementing a fast turn to an administrative release after midterms that shifts reform back onto Congress. The plan that seems to have traction within the Trump Administration is the MBA Plan, as has been widely linked and discussed on this board.

IMO, release under the MBA Plan would be immediate reprivatization, but with new MBS issuance limited to capital resources available sufficient to meet regulatory standards as determined via the rulemaking process already underway. Release from conservatorship would be immediate but all other actions would defer to Congress for some defining legislative reform measure (which eventually could include a Moelis style plan, or several others as proposed over many years).