Fannie Mae-No Politics (FNMA)

[Wise Man]

More evidence that the FHEFSSA's Restriction on Capital Distributions (like dividends and today's gifted SPS) is still in force.
Exception B: to reduce the SPS (Separate Account plan)

A provision considered a Prompt Corrective Action that was snuck at the end of the section: CAPITAL CLASSIFICATIONS.
The July 20, 2011 CFR 1237.12, makes clear at the end, that

it supplements and shall not replace or affect any other restriction on capital distributions imposed by statute.

So, the attorneys should have read the entire statute pertaining to FnF, including the Charter Act with a "special borrowing right from Treasury" (cheap UST backup)