Replies to post #734023 on Fannie Mae-No Politics (FNMA)

[JSmith5]

Was the $5 billion mentioned in the January 2021 letter agreement a preemptive move by Calabria and Mnuchin to attempt a limit on the awards?

I don't think so - I would think its a rough estimate of what they could lose from all the outstanding suits times the probability of loss. They have to do some kind of estimate for potential liabilities in the Annual Financial Statement. If you were in the Civil Division - would you say - yeah, I am a bad lawyer so there is a high probability of loss - hell no. So maybe they got the figure from there.

Does anyone know if we are still on from October 17?

Nats