Replies to post #557512 on Fannie Mae-No Politics (FNMA)

[Embers]

Good analysis. Increase buffer in September.

End NWS in after September formally.

Like it!

[10bambam]

If so the sheep will buy twice. As if they were different/separate events

[contrarian bull]

Last time buffer was increased simply by a letter from Treasury. You can see that letter here:

GSE Agreement Letter

If Treasury has a copy of a PDF editor they simply need to change the date and change the $3 to $30 billion. Just add a zero. I think this could be done in the next two weeks. I could do it in two minutes.

Now... bigger question is will they also increase the liquidation preference by $30 billion too? Last time they did, but with the recent court decision, maybe not? Maybe instead lower or eliminate the liquidation preference as part of a settlement for the NWS being illegal.

Sweep ends next quarter because there is not enough time to amend the SPSA and issue a fourth amendment. The net effect is the same.