Replies to post #692234 on Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Replace "Naigra falls" with BOOOM. Lol for the anti-boomer crowd. Navy better watch it, he'll end up like Curly. Lol

[altruism]

I’m sure Biden’s team will jump right on it rofl

[Clark6290]

Boom is correct. Right after th SCOTUS Opinion, like an explosion goes boom, so did GSE PPS. Great observation

[jog49]

"Booooom ! NO REASON to CONTINUE GSE GOVT HOSTAGE CONSERVATORSHIP !"

Right you are but let's see what excuse the government can come up with this time to make this drag out to doomsday!

[Wise Man]

Booooom ! The secretary of Pagliara repeats the wrong analysis posted in the article from AB's Hannalang.
The stress test contemplates $42 billion of credit losses, not $20 billion.
$42 billion is recorded on the Income Statement upfront, as a provision for loan losses.
The Income Statement 2-year projection, states that FnF would post $15 billion of Net Income (including the $42 billion provision mentioned)
$20 billion of credit losses isn't recorded on the Income Statement. It's charged against the reserve that you just have built ($42 billion plus the beginning balance of this Loan Loss Reserve), so, the ending balance of this reserve at the end of the period of stress test, 1Q2023, is $31 billion to cover more credit losses the next years.
So, the FHFA expects $42 billion of credit losses. $20 billion of which are recorded in the first two years.
Even after $42 billion in losses are fully reserved, FnF would post a profit during the first two years.

[amelia43]

Boom! Great opinion. Unfortunately you are not the government so we’ll likely be in conservatorship for a long long time.