Fannie Mae-No Politics (FNMA)

[Wise Man]

The Charter of FnF isn't about reducing the spread Treasuries-MBS yields in the secondary mortgage market.
This spread has widened reflecting the government bond spree in the Treasury Department, raiding the world savings for itself, so other asset classes have to offer higher yields to attract investors. It also affects the amount of lending by the banks, because the banks absorb the new issuances and have less money to lend, leading to a spike in rates.
It's an efficient financial market and it's stable.

Once FnF are on the finish line 15 years later, the investors now want to keep the Charters, unaware that the Conservatorship endpoint options were related to a Privatized Housing Finance System (2011 UST-HUD Housing Finance System revamp)
The goal during conservatorship, thus, has been to remove all the advantages enjoyed by FnF and their shareholders:

-Wind-down their Investment Portfolios: FnF were accused of using their low cost funding advantages to build an investment portfolio and boost their profits. The SPSPA established a reduction of their Investment Portfolios (Retained Portfolios) first 10% per year, then it was increased to 15% per year in 2012, until they reached $250 billion maximum. This cap was decreased to $225 billion on December 31, 2022. This letter proposes to balloon their Investment Portfolios again.

-Eliminate guarantee fee subsidies. The CBO formally accused FnF of delivering below private sector g-fees to increase their market share. It called it "subsidy cost" and it was charged on the Federal Budget.

-Eliminate their advantages on capital standards. For instance, the FHEFSSA required only a 0.45% of the off balance sheet obligations (MBSs) in the form of core capital. As explained in the aforementinoed 2011 UST-HUD Report to Congress, it was expressly pointed out that the guarantee fee increases had the purpose to hold FnF to the same capital standards as the private banks, that is, Basel framework for capital requirements. Source. Which is what has happened.

-Eliminate the Charter's UST backup of FnF as a last resort. Basel capital standards render this UST backup upon Capital deficiency (negative Net Worth) pointless.

-In the end, we are talking about revoking the Charters as endgame.

Now they see that their "Utility Model" for the extortion of resources out of FnF comes to an end and they are desperate to start the Charter of FnF over again. Too late. The Charter Act had a purpose when it was enacted and it was fulfilled. Nowadays, it's no longer necessary.