Fannie Mae Is Rebuilding Capital To Exit The Conservatorship – Halfway There

Fannie Mae (FNMAS) (FNMA) builds capital to exit the conservatorship. Inertia works for the company as the balance sheet ramps up. Needs $113b, retained $57b. Let’s fill the gap.

The Govt. owns 80% of equity via warrants and can exercise them to earn $72b on Fannie Mae alone and $100b+ total on Fannie Mae & Freddie Mac (FMCC) (FMCKJ).

$100 Billion affordable housing fund is achievable for this Administration if they monetize the Govt stake in the GSEs. If they don’t, the next President will monetize the warrants.