Replies to post #822572 on Fannie Mae-No Politics (FNMA)

[HappyAlways]

4% is unreasonably high. Banks are at 4% because they have bank runs and complexe businesses. Mortgage is never high risk. Too high the capital requirement implies higher mortgage interest rates. 

[bcde]

What is the difference between running FnF with conservatorship and without conservatorship,
if JPS, CS, SPS and Warrants remain the same without any change.

FnF can run much better without bureaucratic burden of FHFA conservatorship on their back.

FnF can build their core capital using SPS as backstop outside conservatorship.

[Donotunderstand]

no DOGE cut is worth 1/10th of 1% of the value of moving the required capital down to 2.5% with a stroke of a felt tipped marker

people are focused in all the wrong directions (e.g. DEI somehow makes any difference on the 7Trillion or reducing staff y 5,000 impacts on 7Trillion and the CORE issue of LP/SP and WTS) --- look over there red herrings