Fannie Mae (FNMA)

[YanksGhost]

I agree on your point #1. But point #2 is a contorted and distorted version of the facts at hand. FHFA was not the plaintiff litigant and the DOJ cited damage to the U.S. economy, housing market and mortgage borrowers, not singular damages to Fannie Mae or Freddie Mac.

In one of the largest of these settlements, $1.2 B with Wells Fargo, the DOJ sued for ineligible mortgages sold to FHA, not the GSEs. In another DOJ suit, W-F was required to pay $175 M that went to minority borrowers that were illegally charged higher fees. This is one case where penalties were negotiated for a specific purpose besides simply enriching the Treasury's coffers.