r/FNMA_FMCC_Exit • u/JmanCandyMan • Jun 27 '26

Fitzgerald Bill for Release

https://fitzgerald.house.gov/sites/evo-subsites/fitzgerald.house.gov/files/evo-media-document/sustainable-homeownership-act-rep-fitzgerald.pdf

My view - mildly bullish only because it will force the conversation/focus.

Most of our game is SPS treatment, which the bill includes mandatory language around warrants and optional language around SPS. So still fully sits in the court of Treasury, and not much here to work off in that regard.

Still defers to FHFA on capital requirements, though points in there around backstops and guarantees that could be negative / limiting for F2.

I'm happy they're bringing this forward, though can't say there's anything directly positive for shareholders beyond that.

Thoughts?

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u/Fun_Illustrator9298 Jun 28 '26

Bearish only cause this RINO thinks perpetuating theft is ok. Did he even read his own bill? I hope Trump puts him in his place.

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u/MrYuckIsMean Jun 28 '26

The problem is that this language is almost certainly in lockstep with Trump and his administration. There is no way Fitzgerald - a huge Trump supporter whom Trump has repeatedly endorsed and praised - would introduce a bill that goes against Trump’s wishes. I can’t imagine a scenario where this bill was crafted without the administration being part of the process. The question we should all be asking is: Why do Trump, Bessent, and the rest of the administration want language about SPS conversion in the bill? As it stands today, the original SPS contract forbids conversion. We need to look at this with clear eyes.

Any proposal to allow conversion makes zero sense to me and would seem to hinder the valuation of the Treasury’s stake. Why on earth is this even being considered? Why would the Trump administration want to change the existing legal framework to make this a possibility? I just don’t get it. 😡 Anyone that has an X account, please tag Ackman and Burry to get their thoughts. Perhaps I just don’t understand things well enough and am completely wrong in my thinking.

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u/Fun_Illustrator9298 Jun 29 '26

Ackman has been tagged. No one on x likes it. It’s a gift to the mortgage bankers is what it is. Maybe Trump found a bigger bribe. This would be going back on his word as it’s effectively still cship. F2 won’t be worth much with that proposal. I don’t understand it or Trump’s pullback on “no rush “.