Replies to post #812111 on Fannie Mae-No Politics (FNMA)

[EternalPatience]

Thanks for the recap.. In the meanwhile, the stockmarket update for you, while you were focussed on the other one

the market gave a middle finger to this urban institute webinar and didnt care abotu what they discussed and its pretty much a toilet paper material is how the stock market has felt...

[Red Cloud]

Any possibility that Fannie and Freddie could acquire the exclusive right to purchase their warrants from the Treasury? Such as, over time?

A warrant to buy the warrants, perhaps?

[Sogo]

All examples of the propaganda to come during the “public input” phase. I’m tellin’ ya, the propaganda we will see will be so massive that there will be no thought out there of ending senior preferreds and canceling warrants. They will make it seem like those aren’t even possible.

[Guido2]

Thanks for the update FOFreddie. Here’s Fiderer:

The debate about the GSEs can be confusing unless you remember 3 rules: 1) mortgages are math; 2) garbage-in/garbage-out; 3) money talks, BS walks.
A implicit guarantee thread. 1/https://t.co/wV9rPakhVi, Freddie & Implicit Guarantee - Parrott & Zandi - January 14, 2025.pdf

— David Fiderer (@Ny1david) January 14, 2025

[Donotunderstand]

Thank you

yet I read this as terrible

There was discussion that the sale of GSE stock could be used to pay for DJT tax cuts and included in Reconciliation Bill - this would be good since it will shorten time line


From where I sit the sale of enough FNMA stock to make a difference - would dilute us big time unless the GOV sets a tight limit on # of shares - like in the case of FNMA 4 Billion shares max --- which then can raise 100B without smashing us below 20%

The speakers had narrow view ---- apparently hard to see GOV letting go of the SP/LP obligation and raising money via a high price low amount of share SPO ---- and then GOV continuing to be guarantor behind high level of reserves that pass every stress test easily

As always - beware the phrase RECAP

[kthomp19]

Some may totally want to dismiss the CBO Report but perhaps it is good to understand all the perspectives out there. Parrot and Zandi will spin it for their own perspective so perhaps it is good to know what they are spinning.

Thank you for the summary. The "conservatorship 4 lyfe!" crowd isn't going to disappear silently. In fact, I expect them to get louder as the release train picks up speed.

It's very nice to know that these guys are going to be on the outside looking in very soon. Parrott can squawk all he wants...from deep in the remote jungle.