Fannie Mae (FNMA)

[Robert from yahoo bd]

So, then the SPSA IS NOT A LOAN, but EQUITY, that is it is a Cumulative 10% payable/12% in kind Coupon PREFERRED SHARE EQUITY INVESTMENT that happens to include a warrant to purchase up to 79.9% of the common shares for a nominal amount that expires in 2028?

So what were the gses suppose to payoff prior to the 3rd Amendment NWS, assuming they had retained earnings to do so, principal of a loan, interest on a loan, or redemption of the preferred shares?

If they paid off the entire amount plus the 10% dividend BEFORE THE NWS, then all that would be left is a 79.9% equity warrant that UST could exercise by 2028 for a nominal amount?

Are we on the same page now?

Prior to the NWS, the Preferred Shares never get retired UNLESS THE GSES PAYBACK THE 10% Annual Dividend plus Principal, then all UST has left is the periodic commitment fee plus 79.9% warrant exercisable by 2028.

So you agree that the NWS is an abusive and coercive use of governmental power that should never stand, as there is no way to pay it off?