Replies to post #754777 on Fannie Mae-No Politics (FNMA)

[Wise Man]

Senator Scott is unaware that "Safety and soundness of the enterprises" is the Adequately Capitalized threshold.
Soundness is related to the capital levels.
And it's achieved when the Total Capital is greater than the Risk-Based Capital requirement.
Another one with the song "Safe and Sound", instead of using the proper financial concepts.
They try to conceal the outstanding capital shortfall, evidence that there's been a Separate Account plan that meets the conservator's function: "put FnF in a sound and solvent condition", jointly with the regulator's duty: "ensure that....including maintenance of adequate capital."
This is their Total Capital adjusted for the Separate Account plan: FnF would be declared Adequately Capitalized.

TOTAL CAPITAL=C.C.+TIER2 C.
Table: TC-CC coincides w/ ALLL($8B/$11B)→ALLL, a gnrl reserve, not against specific assets. But there's a 0.6% RWA limit in Tier2 C.($5B/$8B)→Protocol breach.
TC
FMCC=$122B
$49B surplus over $73B Risk-Based C.requirement
FNMA:$44B surplus.#Fanniegate pic.twitter.com/uvcvkb77PJ

— Conservatives against Trump (@CarlosVignote) May 7, 2023

[Robert from yahoo bd]

https://finance.yahoo.com/news/just-miss-few-payments-screw-172747688.html?bcmt=1

"Schiff’s response was, “Just miss a few payments, screw up your credit score. That will help your mortgage rate.”

Schiff, who successfully predicted the financial crisis of 2008, pointed out the issues with this change.

“This new rule encourages people to make smaller down payments than they might otherwise have made,” he said. “Normally, if you make a big down payment, you get a better rate. But now, Biden wants the better rates to go to people that don’t make a big down payment.”

While the new rule could lead to more people becoming homeowners, it does not bode well for America’s banks, according to Schiff."