Remember that NLY already sees it coming (maybe) and has taken SOME risk off the table. If it happens I would rather be with NLY than AGNC. Even if dividend is cut back to 10 that is still 7 over bonds.
I am still trying to figure out how Obama will be able to sidestep the guidelines set forth in Dodd Frank. Even though it is vague, the law reads any banks that refinance this stuff will have to take a 5% stake, unless it is a qualified loan... which none of these will refinancings could possibly be. (e.g. 20% equity). In my opinion none of this can legally happen.