Replies to post #559114 on Fannie Mae-No Politics (FNMA)

[Guido2]

This would not be a DTA but a prepayment to the U.S. Treasury. It's as good as cash, unless you don't have faith in the government. It would be considered an asset.

[car123]

K19 wrong again. Facts are changed but not your thinking.

Quote from UST reform plan-

"FHFA has approved the GSE’s capital restoration plan, and the GSE has retained or raised sufficient capital and other loss-absorbing capacity to operate in a safe and sound manner;"

Don't mention core capital again. Loss absorbing capacity including DTA, hedging, new credit line from UST (with fee),.... shall be part of GSE capital restoration plan.

By end of Sept you will know how significant retained earning is.

LOL