Fannie Mae-No Politics (FNMA)

[Wise Man]

False.The Restriction On Capital Distributions is set forth in the FHEFSSA, amended by HERA, inside the section CAPITAL CLASSIFICATIONS, and not in the Charter.
So, now you have to start reading the FHEFSSA, something I did 10 years ago.
The only exception for the distribution of Capital, is "to reduce the obligations with respect to ownership interest", that is, the SPS.
The conservator can't authorize a capital distribution because it would be illegal and it also contravenes his Power: put FnF in a sound and solvent condition, as soundness means recapitalization and solvent condition is related to reduce the obligations with the Treasury.

And the backstop is mandatory as long as it's an authorization of Treasury to do it and as part of the Charter that directs FnF to carry out a Public Mission.
I guess you have read in the Charter the FEE PROHIBITION with the only exception the low-rate redeemable obligations, which means that the FHFA and the UST are carrying out The Secret Plan under the guise of outstanding dividend payments to the Treasury. It's the law and they can't continue on the loose like outlaws, but they must surrender their weapons and return the money voluntarily.

Don't expect to read in a statute something that begins with "compulsory Treasury backstop of the enterprises". It's written as an Authority of Treasury to Purchase Obligations.