Fannie Mae-No Politics (FNMA)

[JusticeWillWin]

Fannie Mae: FactChecking Michael Stegman

http://www.valuewalk.com/2015/03/fannie-mae-factchecking-michael-stegman/

They nailed it...

[...]

We’re encouraged that Mr. Stegman is finally being forced to address critical issues related to the undercapitalization of Fannie Mae and Freddie Mac, and how the government’s illegal Third Amendment Sweep is actually exacerbating this problem by taking all of Fannie and Freddie’s profits. But as it has been in the past, his analysis is wrong, and in conflict with HERA, which is the statute that actually governs the conservatorship.

[...]

Policymakers are debating what to do about Fannie and Freddie, but we have a GSE Reform law called HERA. Right now, HERA is being violated by the Treasury, and it was violated by Director Watt’s predecessor Ed DeMarco, who famously admitted to this at a Washington policy conference last year . It’s not too late to reverse course. FHFA can begin rebuilding capital at Fannie and Freddie now, and has the statutory authority to do so under HERA. This would be a good first step.