Fannie Mae-No Politics (FNMA)

[kthomp19]

Just because Calabria says "as amended" does not make it law.

I included a link to the text of HERA itself, which says many times that it amends the GSE Act. So yes, it is law, regardless of whatever Calabria does or does not say.

You have it backwards here anyway. "As amended" is not law because Calabria said it. Calabria said "as amended" because it is the law.

The GSE Act was passed in 1992 and is cited as the enabler of succession.

The original GSE Act was passed in 1992. Then HERA was passed in 2008, which amended the GSE Act.

The succession clause in HERA is in 12 USC 4617, which amended Section 1367 of the GSE Act:

SEC. 1145. AUTHORITY OVER CRITICALLY UNDERCAPITALIZED REGULATED ENTITIES.

(a) In General- Section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4617) is amended to read as follows:

...

‘SEC. 1367. AUTHORITY OVER CRITICALLY UNDERCAPITALIZED REGULATED ENTITIES.

...

‘(b) Powers and Duties of the Agency as Conservator or Receiver-

‘(1) RULEMAKING AUTHORITY OF THE AGENCY- The Agency may prescribe such regulations as the Agency determines to be appropriate regarding the conduct of conservatorships or receiverships.

‘(2) GENERAL POWERS-

‘(A) SUCCESSOR TO REGULATED ENTITY- The Agency shall, as conservator or receiver, and by operation of law, immediately succeed to--

‘(i) all rights, titles, powers, and privileges of the regulated entity, and of any stockholder, officer, or director of such regulated entity with respect to the regulated entity and the assets of the regulated entity; and

‘(ii) title to the books, records, and assets of any other legal custodian of such regulated entity.

I recall no such reference from FHFA since 2008 until this one possible red herring.

FnF don't need to update their references. The Federal Housing Enterprises Financial Safety and Soundness Act of 1992, a.k.a. the GSE Act, is the controlling statute for FnF and has been since 1992. HERA amended parts of it, that's all. Including the addition of the succession clause.