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Just so everyone knows: the Lamberth Decision on Fannie & Freddie is official.
Final Judgement Order - GSEs ( government sponsored enterprises)#FannieMae #FreddieMac pic.twitter.com/6hyQWyihlk
— Nico (@nicosintichakis) August 23, 2024
The annual Housing Goals always lag the market.
Then, a laggard can never be a benchmark by definition.
Once the data is available, the FHFA has to change the "benchmark" or Housing Goals for the next year, as stated by the FHFA at the time of Mel Watt as director.
Therefore, the requirement to do more, is futile because they can't do more than what the market has to offer.
if an Enterprise fails to meet a feasible housing goal, FHFA may require the Enterprise to submit a housing plan describing the steps that it will take to improve its performance.
Differences in the proposed benchmark levels relative to prior housing goals are primarily attributable to changes in projected macroeconomic factors that impact market levels for the different affordable housing segments.
Minority Census Tracts Home Purchase Subgoal.
FIFTH clue that points to the repayment of the SPS fast:
When the dividend payment to UST was switched from 10% dividend to Net Worth increase dividend (NWS dividend), under the Separate Account plan that stipulates that they were assessments sent to Treasury, not actual dividends because it's a capital distribution restricted and unavailable funds for distribution as dividend, out of Accumulated Deficit Retained Earnings accounts.
1989 FHLB-style. The difference is that the FHLBs had to pay an annuity of $300 million in interests, without restrictions. The rest was the assessment sent into a SEPARATE ACCOUNT FOR ZERO COUPON INSTRUMENTS HELD TO ENSURE PAYMENT OF PRINCIPAL.
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With FnF, as dividends are restricted, the full amount was applied towards the reduction of the debenture with the taxpayer "SPS" (A Separate Account plan too). Then, the plotters (the parties in court, justice Alito, former FNMA CEO) began to peddle the idea of "dividend obligation" to turn a dividend into interest payment. That concept doesn't exist in this world.
BOTTOM LINE
A NWS dividend is the fastest speed to that end, as the 10% dividend either increased the losses or was the cause of the losses and subsequent request of funds from the UST (1:1 SPS LP increase), and thus, the outcome is a circular flow: FnF tapped the UST for funds, in order to pay the dividend to UST.
Also known as death spiral, because the outcome is that it was depleting the UST's funding commitment.
It was solved with the NWS dividend, which serves also as the feature captured in the bailout of the FHLBs: they weren't required to send assessments into a Separate Account for the quarter that they reported losses.
Beforehand, FHFA's DeMarco had enacted the July 20, 2011 Final Rule with the surprise at the end of a CFR 1237.12, foreseeing that, with the coming "fast track" NWS dividend, the SPS were going to be redeemed very fast (mainly with the recognition of new Deferred Assets later on), and useful to continue with the Separate Account plan of deception afterwards, now the assessments applied towards the recapitalization of FnF (outside their Balance Sheets), either in the exception 1, 2, 3 or 4 of this "supplemental" restriction on capital distributions.
A plan of deception authorized in the FHFA-C's Incidental Power: "Take any action authorized by this section, in the best interests of .... FHFA".
The "Zing!" power.
PS. Notice that they are the same protagonists in 1989 with the FHLBs and nowadays with FnF, both the institutions FHFA-UST and individuals: DeMarco, Sandra Thompson.
Big bucks no ........
My sister today talked with the Son of someone who will be able to make the decision on releasing Fannie and Freddie. He said,” Oh we are on the same page and it will happen.”
@FHFA & @USTreasury $301 billion swindle of @FannieMae & @FreddieMac equity exposed in US Court of Federal of Claims:https://t.co/CmxaieQoMa
— Guido da Costa Pereira (@GuidoPerei) August 22, 2024
The initial Fact Sheet states:
"These agreements are the most effective means of averting systemic risk and contain terms and conditions to protect the taxpayer"
These agreements provide significant protections for the taxpayer
Guido continues to bring up the theme of the Warrant and comparing it with the banks, debunked a thousand times before.
FnF are not ordinary businesses.
The Warrant was a security that UST was authorized to purchase to (iii) protect the taxpayer (collateral of the SPS investment), as expressly stated in the initial Fact Sheet posted by the plaintiff Mr. Pro Se on this board recently.
The exercise price of $0.00001 per share, confirms it, because with this price it looks more like a collateral to protect from losses.
Issued for free, we considered it purchased at $0 cost because the authority of UST was about the purchase of securities.
But the true reason why it was issued, is for the assault on the ownership of FnF by Wall Street and the Community Banks, according to its prospectus clause 2.1: the "right to receive shares" can be "assigned" to any Person: BKT, MS, JPM, Pershing, etc.
It turns out that that "right to receive shares" that can be assigned (transferred) is the Warrant itself, making it transferable (after exercising it), when in the clause 7 it's claimed that the Warrant is non-transferable. Oops! Two confronting clauses, the one that wrote the prospectus made it void from the beginning, for not knowning what the security Warrant represents.
Like the initial $1B SPS LP, issued for free too, and thus, its value was debited from our pockets. The same with today's NWS 2.0 (SPS LP increased for free every quarter) brought to you by the Trump Administration (at the time, debited from the Additional Paid-In Capital account, now depleted. Common Equity too).
Thus, barred in the FHFA-C's Rehab power (Recap with regulatory capital). This initial $1B SPS was called "commitment fee" is some paper, is considered a higher return on the SPS investments it was attached to, as "fees" are barred in the Charter's Fee Limitation of the United States. Anyway, it also bars these "higher returns" on the Treasury's investments in FnF, and the original rate similar to Treasury yields (subsection (c)), prevails.
Well if there's a DJT win in Nov with him assembling his cabinet the question for us shareholders is how fast will we see the wheels start turning for the release and end of conservatorship of Fannie Mae & Freddie Mac?
The lastest rumour was Elon to join the cabinet as a financial adviser ! There's alot to fix with this country in 4 years so for any hope of release and a win for shareholders is they gotta be working on this now planing there move on Jan 6th or we won't see any change in the first year of 2025!!!!.
That's an Awesome post with the link to the emails. That Jim Parrot should be in jail along with the rest of them for conspiring the Gov to illegally take private property !! When will this Kangaroo court end for Fannie Mae & Freddie Mac !!
Oh wow. I just realized something. Once we hit Patswill target $325 I am going to have no space to store all of these.
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Fannie Mae (the Federal National Mortgage Association, or FNMA) is a government-sponsored enterprise (GSE) in the U.S. that was established in 1938. Its main purpose is to provide liquidity, stability, and affordability to the U.S. housing market. It does this by purchasing mortgages from lenders (like banks), packaging them into mortgage-backed securities (MBS), and selling those securities to investors. This process ensures that lenders have more capital to issue new home loans, helping more Americans get access to homeownership.
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