Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Rodney, this is the very first paragraph of the 2022 Fannie Mae Annual Report filed with the SEC (i. e., the 10-K), the board, management, and the shareholders are powerless and its been that way for 14.5 years, next March 08, 2023 (I added bold):

"We have been under conservatorship, with the Federal Housing Finance Agency (“FHFA”) acting as conservator,
since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the
company, and of any shareholder, officer or director of the company with respect to the company and its assets.
The conservator has since provided for the exercise of certain functions and authorities by our Board of Directors.
Our directors owe their fiduciary duties of care and loyalty solely to the conservator. Thus, while we are in
conservatorship, the Board has no fiduciary duties to the company or its stockholders."

The 3rd Amendment or NWS amended or legally changed the 10% or 12% dividends paid each quarter.

The dividends paid after the 3rd Amendment was signed by the UST and the FHFA were changed to all the profits each quarter and if no profits, then the GSES don't owe dividends that quarter.

THE PROBLEM: The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the terms of the Pay Down of the Liquidation Preference applied.

The CEOs and management are subordinate to the FHFA and don't have the choice to disobey their instructions.

The FHFA routinely attends senior Management meetings to monitor the GSES and the management works for the government not the shareholders.