Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

BCDE,
“Not sure why the attorneys for plaintiff have never challenged the use of banking laws (HERA) to regulate insurance companies (FnF)”

I don’t know that HERA is “banking law”. HERA covers Government Sponsored Entities, which is a term defined very specifically. At this time the GSEs under HERA are the Federal Home Loan Banks (FHLBs), FNMA and FHLMC.

The FHLBs are not necessarily fundamentally dissimilar, either. In the GFC the Seattle FHLB bank effectively fell into a zone of insolvency. So, it was merged administratively into the Des Moines FHLB. How did it fail? Seattle FHLB had too much book exposure with a single partner you may have heard of: Washington Mutual.