Replies to post #770764 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

The only "separate account" that actually exists is the liquidation preference (LP). This is because only the SPS appear on the balance sheets, not the LP. The LP grows "in secret", dollar for dollar with every profit Fnf make - despite the formal stop of the NWS starting in 2019.

Current status (estimated values):

SPS = $191 billion
LP = $300 billion

[imbellish]

I believe this is an under-stated part of the accounting side of the story, Carlos.

From your most recent post:

Unlike the initial $1B gifted SPS in each GSE that DOES appear, along with its corresponding offset (reduction of Additional Paid-In Capital account this time, now exhausted. Core Capital too)

Do you mean that the contra-account for subsequent gifting to the UST are not accounted for in Shareholder Equity on the balance sheet?