Fannie Mae-No Politics (FNMA)

[Rodney5]

SECTION 8. Liquidation Rights and Preference

YOU HAVE FAILED TO RECOGNIZE SECTION 8

In writing Section 3 as stated: "(as defined in the Preferred Stock Purchase Agreement referred to in Section 8 below),” This Section has to be included it is part of the CONTRACT.

Quote: “(iv) decreased each time the Company pays down the Liquidation Preference pursuant to Section 3 or Section 4 of this Certificate by an amount per share equal to the aggregate amount of the pay down divided by the number of shares of Senior Preferred Stock outstanding at the time of such pay down.” End of Quote NOTE: PAYS DOWN THE LIQUIDATION PREFERENCE

“Optional Pay Down of Liquidation Preference”
It cannot be argued, Fannie Mae and Freddie Mac were never provided with a mechanism to emerge from conservatorship. The SCOTUS ruled the Net Worth Sweep was legal. The SCOTUS did not rule the Optional Pay Down of Liquidation Preference as being void. No, it is not void, the court did not say it was void.

So why go through the charade of asking Fannie and Freddie raise additional capital to pay off the senior preferred in full when it has already been paid.

The mechanism is there as clear as day in the stock certificates and the repurchase option set out is fully consistent with the view that the government advances were, if possible, only a short-term backstop that Fannie and Freddie could refinance at any time with private capital.

NO MONEY LEFT TO PAYDOWN THE LP AND REDEEM THE SPS WHEN THE TREASURY SWEEPS THE ENTIRE NET WORTH. AND BY SWEEPING THE NET WORTH THE COMMITMENT CANNOT BE TERMINATED.

https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-Fourth-Amended-Restated-Certificate-04-13-21.pdf