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.
READ FULL ARTICLE HERE