Replies to post #528723 on Fannie Mae-No Politics (FNMA)

[bcde]

"Well, you start paying a periodic commitment fee and you know what you got ... you got yourself an insurance policy!!! "

SPS Credit line is not a insurance policy, it is debt.

CRTs are similar to insurance guarantees.

[kthomp19]

Well, you make a typo in your post and you know what you got ... a non sequitur!

He meant "issuance" instead of "insurance".

You can check the definition of core capital here, look at section (7). RuudG is correct.

[HoldenWalker99]

Issuance, not insurance. Whoops.

Core capital:

(A) The par or stated value of outstanding common stock.
(B) The par or stated value of outstanding perpetual, noncumulative preferred stock.
(C) Paid-in capital.
(D) Retained earnings.

This is the law.