Replies to post #790929 on Fannie Mae-No Politics (FNMA)

[DaJester]

Hey FOFreddie,

I think best case scenario is that this is resolved through executive branch directive. It just takes Treasury and FHFA to be in alignment on how to release, which means they need to be TOLD to fix it. If they built agreements in the past with no Congressional action or law needed, they can just as easily remove the shackles.

1.) Lower the capital requirements to something more in line with adverse scenario stress test
2.) Announce the plan to release when capital threshold is met, to include:
- What amount of SPS or LP remains. Is the LP necessary in case of future financial hardship or bailout? Do they really need dividends on the LP amount (feels like a guarantee fee)
- What they will do with warrants, either plan to exercise or not so the market can determine value of the remaining equity.
3.) Provide progress reports during the GSE quarterly calls

Don't need more lawsuits to do this either. Just build and execute a plan.