Replies to post #642582 on Fannie Mae-No Politics (FNMA)

[Angelmin]

Nothing surprised, it is fully anticipated.
Next is to cancel sr perferreds.

[camaro4me]

My estimate is PSPAS to end the net worth sweep will be by December 15 so that the gov't can go on vacation until the 2nd week in January, as usual.

"Per FHFA officials, the move to finalize the capital requirement tees up FHFA and Treasury making amendments to the PSPAs to end the net worth sweep sometime before the end of this year, which would allow the GSEs to retain all of their earnings. (Current cap is $45 bil)"

FHFA has finalized its post-conservatorship capital rule for Fannie and Freddie with some key changes, including more capital relief for CRT & a higher mortgage exposure risk weight floor that ups the amount of capital the GSEs will be required to hold. https://t.co/HWM1ROmyYJ

— Hannah Lang (@hannahdlang) November 18, 2020

[RumplePigSkin]

The final rule mandates that the GSEs maintain tier 1 capital in excess of 4% to avoid restrictions on capital distributions and discretionary bonuses.

No bonuses or legacy JPS dividends for a while ...

Do we know how long they have to raise capital?

[trunkmonk]

The guy is obviously a psycho. But it won’t look bad after they give back over 100b owed to them. What it signals is SCOTUS ruling against NWS implied.

[Commons_Cancelled]

More capital is better for Commons, right?

Or does that mean more dilution is forthcoming?