Fannie Mae-No Politics (FNMA)

[Wise Man]

More evidence of The Secret Plan.
Before HERA was enacted, there was already an authorizaton of Treasury to purchase OBLIGATIONS, and these must be REDEEMABLE at the option of FnF, which is a replica of the obligations JPS. Also these obligations must have a rate established by the Secretary of Treasury, taking into consideration the Treasury yields at the time, which is the same dividend determined for the Preferred Stocks that the UST bought prior 1968. It can't be regular obligations becasue FnF's trade at a premium yield over Treasuries.
If it walks like a duck, quacks like a duck,.... this authorization of the U.S. Treasury to purchase obligations is, in truth, an authorization to purchase Preferred Stocks, that is, a cheap UST bailout, so the UST could have bought obligations SPS without the need of HERA's unlimited yield obligations. The low yield is for the UST payable after Conservatorship (cumulative dividend) because Capital Distributions are restricted today, and the high yield is for The Secret Plan, the exceptions to the restriction mentioned before, are "dividend to reduce the obligations (SPS)" set forth in HERA and in 2011 CFR 1237.12, the FHFA approved "dividend for their recapitalization".
More info on #Fanniegate.