Replies to post #12807 on Fannie Mae Preferred S (FNMAS)

[brandemarcus]

One question pops into my mind. When we will here from Buffet? This is a business he knows well. He has the capital and should be able to see the value. Will he stay silent forever? Is the price too high?

[Sam1212]

I only wanted to state that "bad bank" is not that bad at all:

- Owns the book of loans until June 2014 including great loans made from 2008 to then. This vinatge of loans would have very little prepayment because interest rates are extremely low for these mortageges. FNF do a very good job of managing interest rate risks. Their problems has been credit risk which should be minimal for these low interest rate loan mortgage since 2008-onwards

-All the Bank litigations and payments from banks flow to the "bad bank"
-All Release of over reserved loan losses get booked by "bad bank"

- Most of employee expenses get shifted to "good bank"

All positives for Common shareholders