Fannie Mae-No Politics (FNMA)

[big-yank]

No, Joseph, I disagree totally. Read HERA. It specifically has an extensive section regarding undercapitalized entities that requires an end to conservatorship and declaration of receivership in a specific period of insolvency defined by inability to meet its payment and regulated obligations. By recollection this period was 3 consecutive months.

HERA requires Fannie Mae and Freddie Mac to make payment to various housing funds, reserves and backstops in addition to payments due MBS bondholders. An insolvency would result if any of these obligations go unfulfilled.