Fannie Mae-No Politics (FNMA)

[Barron4664]

Thanks for the response KT. You are correct that the conservator suspended the capital classifications using their powers as Conservator under HERA. Please go back and re-read my post. The Charter act isnt concerned with capial classifications, thats a construct for the regulator to use to oversee the GSEs. The Charter act is referencing the statutory definitions of Total Capital, Core Capital, and minimum capital. The only definition of these three in the Safety and soundness statute that the director can change by regulation is the minimum capital. And only to set it higher than the statutory level. Which Catman did in fact do. Hera provisions on powers of the conservator or receiver cannot amend a statute. Not possible. This issue I bring up is a statutory challenge to the SPSPA. The language of the contract states that it cannot interfere with the responsibilities of the Director as regulator, and cannot violate the Charter Act. HERA does not enable the Treasury to do anything. Only the Charter Act enables Treasury and FHFA-C to enter into the agreements. The Charter act takes precident to HERA as the amended Safety and Soundness Act of 1992 arises from the fact the Congress created the GSEs. Whether or not prior written approval for each quarterly NWS is public information and would need to be discovered if it in fact was given to FNMA. A blanket approval signature in the 3rd amendment would be a matter for a judge to decide if it meets the statutory responsibility Congress intended of the Director set out in the Charter Act not Hera. In any event, the Charter act requires that all earnings of FNMA be transferred on an annual basis to the general surplus account of the enterprise. What Congress does not say is transfer all earnings quarterly to the Department of Treasury. In addition there are statutory provisions regarding the accounting of these annual transfers to the general account that I have not gotten into. Going to be pretty hard to get a judge to twist the Congress’s plain language statute to interpret it away. I wouldnt put it past them though. For these reasons the NWS is clearly ultra vires to the Charter act. If only the man of steel payed attention to charter law instead of Delaware law.