Fannie Mae-No Politics (FNMA)

[big-yank]

How do you interpret the "shall" on page 84 of HERA when it clearly states:

"A. In General---The Director shall appoint the Agency as receiver for a regulated entity if the Director determines in writing that--- i.the assets of the regulated entity are, and during the preceding 60 calendar days have been, less than the obligations of the regulated entity..."

Shall is absolutely an imperative.

Doesn't this mean that when the GSEs were unable to pay Treasury the original 10% dividend that FHFA should have declared them in receivership? Looks to me like Amendment 3 may represent the ultimate example of "conserve and preserve" by offering both GSEs an alternative to receivership.