Fannie Mae-No Politics (FNMA)

[Rodney5]

Barron, Question,

The second amendment to the SPSPA dated December 24, 2009, was 7 days before December 31, 2009, which was the termination date, ending date, that permitted the Treasury to purchase obligations of the Enterprise Fannie Mae: This second amendment has been recorded in the amount of $200,000,000,000 (two hundred billion dollars): This amount of money is construed as a commitment from the Treasury, a line of credit, backstop. This money was not used to purchase obligations of Fannie Mae as permitted in the HERA legislation: Did the FHFA have authority to enter into contract under these terms as defined by the changes of the company's Charter Act by HERA?

Congress did not authorize the FHFA the authority to change any portion of the Charter Act through the HERA legislation. The FHFA and its Director are executive branch entities. They cannot make changes to federal laws. Only Congress can change the law. For a complete list of all changes that Congress made to the Fannie search through the following document for “charter act”.

Below is a thread to one of the changes in the Federal National Mortgage Association Charter Act made by HERA. Section 304 Charter Act amended.

HOUSING AND ECONOMIC RECOVERY ACT OF 2008
PUBLIC LAW 110–289—JULY 30, 2008
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, (Highlighted below) …

DIVISION A—HOUSING FINANCE REFORM
SEC. 1002. DEFINITIONS.
‘‘(3) AUTHORIZING STATUTES.—The term ‘authorizing statutes’ means— ‘‘(A) the Federal National Mortgage Association Charter Act; ‘‘(B) the Federal Home Loan Mortgage Corporation Act; and ‘‘(C) the Federal Home Loan Bank Act.

TITLE I—REFORM OF REGULATION OF ENTERPRISES

FHFA: SEC. 1101. ESTABLISHMENT OF THE FEDERAL HOUSING FINANCE AGENCY.

‘‘Subtitle B—Required Capital Levels for Regulated Entities, Special Enforcement Powers, and Reviews of Assets and Liabilities’’;

SEC. 1117. TEMPORARY AUTHORITY FOR PURCHASE OF OBLIGATIONS OF REGULATED ENTITIES BY SECRETARY OF TREASURY.

(a) FANNIE MAE.—Section 304 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719) is amended by adding at the end the following new subsection:

; CONDITIONS.—
‘‘(1) AUTHORITY TO PURCHASE.—

‘‘(A) GENERAL AUTHORITY.—
‘‘(B) EMERGENCY DETERMINATION REQUIRED.—
‘‘(C) CONSIDERATIONS.—
‘‘(v) The need to maintain the corporation’s status as a private shareholder-owned company.
‘‘(D) REPORTS TO CONGRESS.—

‘‘(2) RIGHTS; SALE OF OBLIGATIONS AND SECURITIES.—

‘‘(3) FUNDING.—

‘‘(4) TERMINATION OF AUTHORITY.—The authority under this subsection (g), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009.

Paragraphs (2) and (3) Allows the Treasury to sale obligations and securities purchased from the time the Enterprises were taken over to the end of the purchase period December 31, 2009.

Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf

Link: https://www.sec.gov/Archives/edgar/data/310522/000095012309074293/w76743exv4w1.htm