Fannie Mae-No Politics (FNMA)

[kthomp19]

Main problem with your argument is, you are trying to quote private SPSPA contract terms as if they are the laws of the land.

As I said in my other post, contract rights are part of the law.

BTW SPSPA terms are not in compliance with laws.

The only part of the SPSPAs that has been challenged in court, at least in an attempt to get it overturned (rather than just monetary damages that leave the SPSPA terms intact), is the NWS.

Read 4617(f). It empowers FHFA conservator to do anything it wants and no courts can enjoin FHFA conservator from doing so.

Only if such acts are not ultra vires.

BTW any one is allowed to cancel or renegotiate any contracts.

This is absolutely false. One party to a contract cannot just unilaterally cancel it or change the terms. That's the whole point of having a contract! Imagine if your bank could just "cancel or renegotiate" your mortgage without any recourse by you. Things don't work that way.

Under HERA, conservator can cancel or renegotiate any contracts.

If you're referring to the "repudiation" section of HERA, please read it again:

‘(d) Provisions Relating to Contracts Entered Into Before Appointment of Conservator or Receiver-

‘(1) AUTHORITY TO REPUDIATE CONTRACTS- In addition to any other rights a conservator or receiver may have, the conservator or receiver for any regulated entity may disaffirm or repudiate any contract or lease--

‘(A) to which such regulated entity is a party;

‘(B) the performance of which the conservator or receiver, in its sole discretion, determines to be burdensome; and

‘(C) the disaffirmance or repudiation of which the conservator or receiver determines, in its sole discretion, will promote the orderly administration of the affairs of the regulated entity.

‘(2) TIMING OF REPUDIATION- The conservator or receiver shall determine whether or not to exercise the rights of repudiation under this subsection within a reasonable period following such appointment.

FHFA's authority to repudiate contracts only applies to contracts that already existed at the time conservatorship was imposed. The SPSPAs don't fall into this category.

If you meant a different part of HERA, please quote it.