Fannie Mae-No Politics (FNMA)

[nats1]

Thanks for your help Rick!

Here's my summary that would include a happy ending for us in June:

In the Big Inning (the Bible’s first reference to baseball) FDR created Fannie Mae. And He saw it was good. Because Fannie Mae was lonely and needed a helpmate, in 1970 Freddie Mac was created from a rib of Fannie Mae and together they dwelled in the Garden of McLean (although Fannie moved to 15th Street downtown a few years ago). And all was well.

Then, in 2008, the devil appeared in the form of a Federal Agency (FHFA) headed by his servant, James Lockhart. Jealous of the success of the GSEs, deceit, greed and avarice led the FHFA to put the GSEs in jail and seize some of their profits. But that was not enough for the devil. In 2012 the FHFA decided to take all of their profits in perpetuity, and throw away the key. And the FHFA saw that it was good.

In 2016, Fannie and Freddie shareholders Patrick Collins, Marcus Liotta and William Hitchcock sued in a federal court in Texas saying that the 2012 actions, sometimes referred to as the “net worth sweep,” exceeded FHFA’s authority and that the agency was bad.

In June 2021 the Supreme Court saw that all was not well in paradise and ordered the GSEs let out of jail and all the stolen money returned. And the stockholders saw that it was good.