Replies to post #3904 on Fannie Mae Preferred S (FNMAS)

[5bagger]

Freddie net now ~ $50B, by 2014 ~ $25

By 2015 = $0

The longer they wait to decide, the better.

Just keep those profitable quarters coming. We all know the G-fee was increased, the formulas for loss reserves are improving (house prices up; delinquencies from 2008 and prior going away).

Can Freddie make $5B + per quarter?

I sure think so.

[44centsAKAchoccake]

Not to mention that they can use FnF as a tax collector, charging extra GFees that would be passed through to Tsy. They've already done this and they are sure to do it again. Higher GFees make it a little more likely that the private-label market can re-emerge.