Fannie Mae-No Politics (FNMA)

[Rodney5]

Quote: “FHFA has decided that it doesn't have to assign any capital classification under 12 USC 4614 while FnF are in conservatorship.” End of Quote Wrong

FHFA and its Director are executive branch entities. They can not make changes to federal laws. Only Congress can change the law.

The Charter Act, FHEFSSA and HERA passed by Congress is the supreme law of the land that governs the two companies.

Fannie Mae and Freddie Mac's regulatory guidelines would have prohibited the companies form paying dividends to the Treasury while severely under-capitalized, but the FHFA suspended those guidelines because the regulator wanted the companies to have to draw more senior preferred stock from the Treasury to pay the annual dividends in cash, ballooning their outstanding senior preferred stock and increase their required annual dividends. FHFA and its Director are executive branch entities and can not make changes to federal laws. Only Congress can change the law. Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee.