Fannie Mae-No Politics (FNMA)

[Rodney5]

Question To Anyone

Did the FHFA have authority to enter into contract with the United States Treasury 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 under terms as defined by the changes of the company's Charter Act by HERA?

The HERA legislation granted temporary authority to the Treasury to purchase obligations of the Enterprise, above the limits written in the Charter. (2.5 billion).

Did Congress have intention, with the passage of the HERA legislation, to grant the Treasury department permission to spend $200,000,000,000 (two hundred billion dollars) ?

Written in the Charter Act: Quote:The Secretary of the Treasury shall not at any time purchase any obligations under this subsection if such purchase would increase the aggregate principal amount of the Secretary’s then outstanding holdings of such obligations under this subsection to an amount greater than $2,250,000,000. End of Quote

FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT

SEC. 304. SECONDARY MARKET OPERATIONS

(c) PURCHASE OF OBLIGATIONS BY TREASURY; CONDITIONS AND RESTRICTIONS.- The Secretary of the Treasury is authorized in the Secretary’s discretion to purchase any obligations issued pursuant to subsection (b) of this section, as now or hereafter in force, and for such purpose the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds of the sale of any securities hereafter issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include such purchases. The Secretary of the Treasury shall not at any time purchase any obligations under this subsection if such purchase would increase the aggregate principal amount of the Secretary’s then outstanding holdings of such obligations under this subsection to an amount greater than $2,250,000,000. Each purchase of obligations by the Secretary of the Treasury under this subsection shall be upon such terms and conditions as to yield a return at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the making of such purchase. The Secretary of the Treasury may, at any time, sell, upon such terms and conditions and at such price or prices as the Secretary shall determine, any of the obligations acquired by the Secretary under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such obligations under this subsection shall be treated as public debt transactions of the United States.

Link: https://www.sec.gov/Archives/edgar/data/310522/000031052219000385/fanniemaecharteractex31.htm

AGAIN

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