Fannie Mae-No Politics (FNMA)

[Wise Man]

THE CONSERVATOR DIRECTED FnF TO BUILD INFINITE CAPITAL.
Specially harsh with the JPS holders, as the dividend payments are essential for the stock valuation in a fixed-income security. Now, turned into discount notes.
According to the Law, the purpose of the 10%/NWS dividends was the repayment of the SPS and recapitalization, otherwise these capital distributions wouldn't have existed (both, exceptions to the Restriction on Capital Distributions)
Now, there is a NWS 2.0 with the Retained Earnings held in escrow when the SPS are increased for free (concealed with securities law violations)
It's estimated $392.2B Retained Earnings held in escrow (add the CRT expenses and other refunds requested)
With this so called "secret plan" that everybody knows about, FnF met the threshold to resume dividend payments in the 2Q2021 and 3Q2021, in Fannie Mae and Freddie Mac, respectively.
With the May 16, 2022 amendment to the February 16, 2021 Capital Rule, the buffer is unknown because fnma said that it needs two quarters to assess it.
But the secret plan goes on and on, now building capital presumably even beyond the total buffers, when the JPS's role of recapitalization should stop on the Adequately Capitalized threshold.
The conservator is authorized to do it in its Incidental Power: take any action authorized by this section, in the best interests of FnF and FHFA.
The soundness of FnF is more than pristine. Divine.
More detail here.