Fannie Mae-No Politics (FNMA)

[Wise Man]

***BOMBSHELL*** THE FHFA's DIRECTOR TO BE FIRED FOR CAUSE.
The roadmap in HERA states that the Capital Distributions (like dividends) are restricted, with the EXCEPTION: to reduce the financial obligations with respect to ownership interest. That is, to reduce the SPS.
In a July 2011 Final Rule that aimed at clarifying this restriction in HERA, it made clear that the dividends to the shareholders (Equity holders) are suspended until FnF are Adequately Capitalized.
But surprisingly, we can read a changed behavior in the report of the Capital rule published yesterday, explaining that it thinks that it can waive the application of this restriction because it suspended the Capital Classifications in 2008, since this restriction appears inside the section in HERA: Capital Classifications.
But a Federal Agency isn't empowered to waive the application of statutory provisions.
The fact that in the 2011 Final Rule it approved another exception to allow the capital distributions (1) to recapitalize FnF, is the evidence that there's a Secret Plan of fast repayment of the obligations SPS and recapitalization, under the guise of dividend payments to the Treasury.
Full explanation.