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TightCoil

02/14/24 12:36 PM

#786027 RE: Wise Man #786026

Too wordy to be meaningful, takes
Artificial Intelligence to a new level

Wise Man

02/15/24 9:38 AM

#786112 RE: Wise Man #786026

Adjusted BVPS in $FNMA= $116.
Under the Separate Account plan (no dividend payment to no one)
Fannie Mae has set aside a small provision for loan losses of $116 mll, breaking two consecutive quarters of reserve release. ALLL ending balance: $8.7B.
Unlike Freddie Mac that released $467 mll in Q4, for the third quarter in a row (ALLL ending balance: $6.8B).
A Loan Loss Reserve for expected losses, unlike the capital ratios for unexpected losses.
How the Common Equity per share is calculated, was explained yesterday in the post I'm replying to.

The JPS need the Common Equity to resume the dividend payment and recoup their par value. Something they aren't aware of, not challenging all the capital distributions to Treasury.