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  "documentTitle": "Fannie Mae & Freddie Mac (FNMA / FMCC)",
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  "authorName": "William Ackman",
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  "notes": "The slide uses a hypothetical cost structure based on Essent Group to demonstrate the unprofitability of new entrants.",
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      "kind": "callout",
      "text": "New participants will not be profitable at current g-fee levels because they will lack the GSEs' economies of scale",
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      "text": "G-fees, and in turn, mortgage rates, may need to be as much as 240bps higher to produce economic returns that might attract private sector capital to new, small-scale participants",
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      "text": "Based on the cost structure of Essent Group (NYSE: ESNT), a 4-yr old PMI",
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      "text": "Potential increase in mortgage rates",
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      "text": "Net Income: (16) bps",
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      "text": "G-fees, and in turn, mortgage rates, may need to be as much as 240bps higher to produce economic returns that might attract private sector capital to new, small-scale participants",
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      "text": "Source: Company filings and Pershing Square estimates. Note: Administrative expense of 90bps based on the ratio of Essent's $71mm of underwriting and operating expenses and $7.8bn of risk-in-force for 2013.",
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      "text": "Returns are Uneconomic for New Participants",
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