Fannie Mae-No Politics (FNMA)

[Wise Man]

FHFA is well aware of the existence of a Prompt Corrective Action upon undercapitalization of the enterprises, but it refuses to acknowledge it publicly.

In this screenshot taken from the latest Final Rule that amended the ERCF, published in the Federal Register, the FHFA responds to the comments submitted by stakeholders and other people interested in the subject.
It explains what the capital buffers are for: a cushion of capital to prevent falling into undercapitalization territory, when a prompt corrective action kicks off.
But we see again how the FHFA is reluctant to mention which prompt corrective action it's talking about, because it's the Restriction on Captial Distributions (HERA subtitle C - Prompt Corrective Action) covered up by the Government and by those peddling the Government theft story, aiming to arrange a different outcome using the companies as a bargaining tool.
We saw it also in the July 20, 2011 Final Rule "for the transparency of the conservatorship", where in the CFR 1237.13, the FHFA stated that the payment of securities litigation judgments are barred in conservatorship, without outlining the true reasoning behind, which is no other than the FHEFSSA's Restriction on Capital Distributions.


The true reasoning was outlined in the preface of this rule:

This is the reason why the Wall Street law firm representing the FHFA, requested to judge Lamberth in an oral motion, to defer the judgment in the recent trial, because it would have to announce that this payment is prohibited with the restriction in the law mentioned.
So, the conservatorship is all about the coverup of this statutory provision, among others like the cheap UST backup of FnF, Fee Limitation of U.S. and the FHFA-C's Rehab power (Recap), by the FHFA/DOJ and their counterparty, the plotters peddling the Govt theft story.
15 years and counting.
It turns out that the coverup of a material fact is a crime of Making False Statements, for which we request a compensation for Punitive Damages worth $4.8 billion each.