Replies to post #500111 on Fannie Mae-No Politics (FNMA)

[3antar]

Old news now, we moved on from this

[HoldenWalker99]

Good post and video.

Trump Administration to Unveil Fannie, Freddie Overhaul Soon

Agree - recapitalization plan (led by FHFA/UST) and a wish list for reform (led by Congress).

Reduce marketshare - “We need to cut them back”

Agree. Using today's earnings for future valuation is a mistake. Cut 10%, 25%, 50%, more?

“Congress create a better system. Government less involved”. (Doesn’t really think this is the path - IMO)

Depends on interpretation.

Banks could “better” provide loans for second homes, vacation homes, Refi’s (Cash Out Refi’s) - (Trying to carve something out for the big banks - IMO)

More reducing footprint and score... lower earnings.

FNF moved to Public Sector

I think you mean "private" but yeah.

Recapitalized by markets

Yes.

Catastrophic guarantee on some of their securities.

Yes, but requires Congress.

Must reduce size. Slowly. (Trying to influence a slower implementation - IMO)

Yes.

Get government out

Yes.

Put in more counter-cyclical capabilities.

Yes; most likely FHFA can handle but may require Congress.

Work with Congress to get to the right structure.

Yes. Reform. Amend charters, additional guarantors, codify reforms, affordable housing, loan limits, etc.

Sounds like he knows something and is trying to influence the outcome a little.

Yes.

Bottom line: It sounds like unstoppable change will be introduced soon. IMO.

Yes.

[observer21]

We're toast. Probably a delay tactic they can blame on Congress in order to continue the NWS for many years to come.
"Trump administration is said to focus on legislative overhaul
White House intends to work with lawmakers, spokeswoman says"