FNMAS

Key Statistics

Ticker

FNMAS

Exchange

OTC Pink Sheets

Par Value

$25.00

Dividend Rate

8.25%

Dividend Status

Suspended

Type

Non-Cumulative Preferred

Series

Series S

Issuer

Fannie Mae (FNMA)

What Is FNMAS?

FNMAS is the OTC ticker symbol for Fannie Mae 8.25% Non-Cumulative Preferred Stock, Series S. It was issued by the Federal National Mortgage Association (Fannie Mae) as part of the company's capital-raising activities before the 2008 financial crisis.

As a junior preferred share, FNMAS sits below the U.S. Treasury's senior preferred stock but above Fannie Mae's common stock (FNMA) in the capital structure. It has a stated par value of $25.00 per share and a stated annual dividend rate of 8.25% ($2.0625 per share annually).

The “non-cumulative” designation means that if dividends are suspended (as they currently are), the missed payments do not accumulate as obligations. Once dividends resume, shareholders receive only forward payments — not the years of missed dividends.

FNMAS trades on the OTC Pink Sheets, not on a major exchange like the NYSE or NASDAQ. This means lower liquidity and wider bid-ask spreads than typical exchange-listed securities.

The Investment Thesis

Why some investors believe FNMAS is significantly undervalued.

Par Value vs. Market Price

FNMAS has a par value of $25.00. The current market price trades at a substantial discount to par. If Fannie Mae exits conservatorship and the existing capital structure is honored, the gap between market price and par value represents significant potential upside.

Recap and Release

The “recap and release” thesis holds that Fannie Mae will eventually exit conservatorship through a recapitalization process. If the junior preferred shares survive this process intact, their value could approach par. The political will for ending the conservatorship has been building, with multiple administrations exploring exit strategies.

Earnings Power

Fannie Mae is among the most profitable financial institutions in the world. The company guarantees roughly half of all U.S. residential mortgages and has generated tens of billions in net income since returning to profitability. The enterprise has the earnings power to support its capital structure — the only question is whether the government will allow it.

The Net Worth Sweep Injustice

The 2012 Net Worth Sweep (Third Amendment) redirected nearly all of Fannie Mae's profits to the U.S. Treasury, sweeping hundreds of billions of dollars that could have been used to rebuild capital and pay preferred dividends. Shareholders have challenged this in court, arguing it effectively nationalized private property without compensation.

Current Status

Where things stand with FNMAS and the Fannie Mae conservatorship.

Conservatorship: Fannie Mae has been under FHFA conservatorship since September 7, 2008. This is the longest conservatorship in U.S. history — spanning nearly two decades. During this time, the company has paid the Treasury far more than it received in bailout funds.

Dividends: All dividends on FNMAS and other junior preferred series remain suspended. No dividends have been paid since 2008.

Litigation: Multiple lawsuits challenging the Net Worth Sweep have worked through the courts. Some cases have resulted in favorable rulings for shareholders, while others have not. The legal landscape continues to evolve.

Political Momentum: There is growing bipartisan interest in ending the conservatorship. The question has shifted from “if” to “how” and “when.” The specific terms of any exit will determine the ultimate value of FNMAS and other junior preferred shares.

Capital Retention: Amendments to the PSPAs have allowed Fannie Mae to begin retaining earnings to build capital. This is a necessary precursor to ending the conservatorship and a positive signal for preferred shareholders.

My Perspective

I hold FNMAS. I have been writing about Fannie Mae and Freddie Mac junior preferred shares since 2013, with over 300 articles published on SeekingAlpha and 8 books on the topic.

My thesis on FNMAS is straightforward: the par value dramatically exceeds the current market price. Fannie Mae is one of the most profitable financial institutions in the world. If the conservatorship ends with any form of recapitalization that respects the existing capital structure, FNMAS is deeply undervalued. I have documented this thesis extensively on my Fanniegate page.

For my full portfolio and all positions, visit my positions page. For a complete overview of all Fannie Mae and Freddie Mac preferred series, see the preferred stock overview.

Frequently Asked Questions

Common questions about FNMAS and Fannie Mae preferred stock.

What is FNMAS stock?

FNMAS is the ticker symbol for Fannie Mae 8.25% Non-Cumulative Preferred Stock, Series S. It is a preferred share issued by the Federal National Mortgage Association (Fannie Mae) that trades on the OTC Pink Sheets. It has a par value of $25 and a stated dividend rate of 8.25%, though dividends have been suspended since Fannie Mae entered FHFA conservatorship in September 2008.

Why is the FNMAS dividend suspended?

Fannie Mae has been in FHFA conservatorship since September 2008. Under the conservatorship and the Senior Preferred Stock Purchase Agreements (PSPAs) with the U.S. Treasury, dividends on all junior preferred stock series, including FNMAS, were suspended. The 2012 Third Amendment (the Net Worth Sweep) further directed nearly all of Fannie Mae's profits to the Treasury, leaving nothing for junior preferred shareholders.

What is FNMAS par value?

FNMAS has a par value (also called liquidation preference) of $25.00 per share. This is the amount each share is entitled to receive in a liquidation or redemption before any distribution to common shareholders. The current market price trades at a discount to this par value.

Will FNMAS ever pay dividends again?

Whether FNMAS resumes dividend payments depends on the resolution of Fannie Mae's conservatorship. If Fannie Mae exits conservatorship through a recapitalization (often called 'recap and release'), and the existing capital structure is respected, junior preferred shareholders could see dividends restored and share prices move toward par value. This outcome is not guaranteed.

What is the difference between FNMAS and FNMA?

FNMA is the common stock of Fannie Mae, while FNMAS is a junior preferred stock (Series S). Preferred stock sits above common stock in the capital structure, meaning preferred shareholders have a higher claim on assets and earnings. FNMAS has a fixed par value of $25 and a stated 8.25% dividend rate, while FNMA common stock has no par value or guaranteed dividend.

What happens to FNMAS if Fannie Mae exits conservatorship?

If Fannie Mae exits conservatorship through a recapitalization that respects the existing capital structure, FNMAS could potentially return to or near its $25 par value and resume its 8.25% dividend. However, the exact terms of any recapitalization are uncertain. Other outcomes, including conversion, write-down, or extended suspension, are also possible. This is a speculative investment with significant risk.

Is FNMAS a good investment?

This page is not financial advice. FNMAS is a speculative security whose value depends heavily on political and regulatory decisions regarding the conservatorship of Fannie Mae. Glen Bradford holds FNMAS and believes it is undervalued relative to par, but this is his personal thesis. Preferred stock investments carry significant risk, including the possibility of total loss. Always do your own research and consult a qualified financial advisor.

Important Disclaimer

This is not financial advice. Glen Bradford holds FNMAS and has a direct financial interest in its outcome. The information on this page is for educational and informational purposes only.

Preferred stock investments carry significant risk, including the possibility of total loss. FNMAS is a speculative security whose value depends on political, regulatory, and legal outcomes that are inherently unpredictable. Past performance does not guarantee future results.

Always do your own research and consult a qualified financial advisor before making any investment decisions. Nothing on this page constitutes a recommendation to buy, sell, or hold any security.

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