Replies to post #1777 on Fannie Mae Preferred S (FNMAS)

[skibrian]

it helps ensure their survival. I wish they would be honest and tell the american people this is a new TAX on every home they finance via F&F. That's only honest...they are leading the public to believe (and the press isn't holding the politicians accountable) that they are sweeping more profits from F&F and punishing them. That simply isn't true.

The day they take more profits than the current Treasury agreement is the day that Congress crosses the line. I will be pissed and likely sell and finally agree with Kyle Bass that there is no interest in Washington to revive these companies and release from Conservatorship as private companies.

I wait and see....

[44centsAKAchoccake]

[Does the g-fee for the 2 month payroll deduction make Killing of the GSE any harder?]

I think the answer has to be yes. FnF will be collecting these revenues for 10 years, roughly $.5 m per year for 10 years, in order to fund the payroll tax reduction.

[44centsAKAchoccake]

[De Marco has not raised the g-fees higher sooner]

Freddie Mac
3Q 2011 20.3 bp
3Q 2012 26.5 bp
That's a 30 jump.

Also worth noting that the new book of business has, so far, had very low serious delinquency rates.

From a risk/reward standpoint, given good new book of business, 26.5 bp seems relatively reasonable.