Fannie Mae-No Politics (FNMA)

[Wise Man]

Howard always cheating. He can't say

“Separate account” (I don’t know what that is)

, because it's the title of a section in the 1989 FHLBanks' bailout by Congress, that lasted till 2011.
So, as former FNMA CFO he was aware of this scheme for the repayment of the principal of the obligation with the taxpayer through a Separate Account, with monies invested in zero coupon Treasuries. This is why we require interests on the $152.3 billion that the UST and the FHFA owe to FnF.

As CFO, he must have read the dynamics, for instance, shown in the next screenshot taken from the Earnings report of a FHLBank at the time.
We can read that the UST was deeply involved in this Separate Account. Primarily, by law there was a statutory provision entitled UST backup for the $300 million annual annuity. Also, it was in charge of determining the rate of discount when the assessment sent by the FHLBanks was higher than their annual annuity, which reduced the maturity of the obligation.
Other theme is that with the $300 million annual annuity, they were only paying the interests, because Sandra Thompson tapped the maximum $30B obligation they were allowed by law, just when she arrived at the FDIC, hand in hand with GAO's DeMarco. Notice that it was reinvested in RFC, which, in turn, set up multiple complex Public-Private Partnerships as investment schemes. The reason why the hedge funds and the investment banks adore her.
This is why they made up that the "obligation" (a bond) is the obligation to pay interests. Likely, the UST lost the $30B invested in REFcorp bonds and then, these officials went after FnF to make up for the losses.

With FnF, the Separate Account continued with amounts deposited for their Recapitalization, thanks to the CFR 1237.12, under the guise of dividend payments. Restricted and unavailable funds for distribution, they were assessments in the form of capital distributions, applied towards the exceptions to the restriction on capital distributions: reduce the SPS and recapitalization.
The interests owed to FnF are netted out with the weighted average cumulative dividend on SPS, assessed at a 1.8% rate with a 0.5% spread over Treasuries (0.299% in the case of the FHLBanks -GAO report-), taking into account the quarterly investments and also the repayments, until the SPS were fully repaid at the end of 2013 in Freddie Mac and end of 2014 in Fannie Mae.
Timothy Howard is a scammer. He even writes Stephens, instead of Stevens, to transmit the idea that he doesn't know David Stevens, another plotter like him (Source)