Fannie Mae-No Politics (FNMA)

[obiterdictum]

Linked below are material and financial facts and the official current numbers in detail:

Tables 1 and 2 - Quarterly Draws on Treasury Commitments to Fannie Mae and Freddie Mac per the Senior Preferred Stock Purchase Agreements and Dividends on Enterprise Draws from Treasury
http://www.fhfa.gov/DataTools/Downloads/Documents/Market-Data/Current-Market-Data-2015-09-30.pdf

FHFA Private-Label Mortgage-Related Securities Litigation
In the third quarter of 2011, FHFA, as conservator, filed 16 lawsuits on behalf of both Fannie Mae and Freddie Mac against various financial institutions, their officers and affiliated and unaffiliated underwriters that were responsible for marketing and selling private-label mortgage-related securities to us. Fourteen of these lawsuits were resolved during 2013 and 2014, and two remain pending.

One of the remaining lawsuits is against Nomura Holding America Inc. and certain related entities and individuals, and is pending in the U.S. District Court for the Southern District of New York. The other remaining lawsuit is against The Royal Bank of Scotland Group PLC and certain related entities and individuals, and is pending in the U.S. District Court for the District of Connecticut. Both lawsuits were filed on September 2, 2011. These two remaining lawsuits seek to recover losses we and Freddie Mac incurred on the private-label mortgage-related securities the defendants sold to us and Freddie Mac. The lawsuits allege that the defendants violated federal and state securities laws by making material misstatements and omissions regarding the characteristics of the loans underlying the securities in the offering documents for the securities that were sold to Fannie Mae and Freddie Mac. The complaints seek, among other things, rescission and recovery of consideration paid for the securities at issue in the lawsuits, monetary damages and interest. [From Fannie Mae 2014 10-K, pp. 65-66 - http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2014/10k_2014.pdf ]

PLS Litigation Settlements
http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFAs-Update-on-Private-Label-Securities-Actions.aspx

Monies from these settlements were part of Fannie Mae and Freddie Mac's comprehensive income.

"Our results included pre-tax income of $5.7 billion in each of 2014 and 2013 as a result of resolution agreements we reached relating to private-label mortgage-related securities (“PLS”) sold to us, representation and warranty matters, and compensatory fees." [See Fannie Mae 2014 10-K, p. 3 - http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2014/10k_2014.pdf]

"During 2014, we recognized $6.1 billion within non-interest income on our consolidated statements of comprehensive income from the settlements discussed above." [See Freddie Mac 2014 10-K, p. 214 - http://www.freddiemac.com/investors/er/pdf/10k_021915.pdf]

In 2013, Freddie Mac received $5.5 billion within non-interest income in settlement money [See Freddie Mac 2014 10-K Table 19.1, p. 237].

All FHFA litigation expenses were also paid by the GSEs.

PENDING
Nomura
http://www.businessinsider.com/r-nomura-rbs-must-pay-806-million-in-mortgage-bond-case-us-judge-2015-5

Royal Bank of Scotland
http://www.cnbc.com/2015/08/24/reuters-america-rbs-loses-bid-to-toss-us-regulators-mortgage-bond-lawsuit.html