"Where in HERA is them recapitalizing the companies via a private placement disallowed? "
It is very simple. If any laws including HERA do not authorize FHFA conservator, then FHFA conservator do not get those authorities. FHFA can not get authorities that are not in laws.
We have to look at FHFA regulations, case laws, GSE laws, FnF by laws, APA etc for authorizations. Under FHFA regulations FHFA has delegated many corporate management functions to FnF management. Besides Gov bureaucrats can not have personal conflict of interests in making these decisions.
BTW OB administration used secrecy to do all the lawless things, and eventually they will be held responsible.
Courts have ruled that FHFA conservator has broad authorities but should be in compliance with laws. Now FHFA coming under direct supervision of executive branch, same laws should apply to FHFA that apply to other executive agencies.
So for, courts have allowed lawless SPSPA and NWS etc, because the stolen money goes to Gov. If Gov bureaucrats start benefiting their private cronies, then not only Courts will get mad, but Congress, IG and DOJ may start their own investigations.
Dems are looking for every opportunity to investigate Trump administration. Why would Trump administration give such opportunities to Dems especially with elections are so close. That is why WH issued memo to make it transparent and non controversial. It is much safer for Trump administration if recapitalization is done by FnF management outside of Gov conservatorship.
It is highly unlikely that Trump administration will allow UST and FHFA to get involved in recapitalization process of FnF.
