Fannie Mae-No Politics (FNMA)

[Wise Man]

This is Mel Watt calling the CRTs "innovation".

Notice that Watt is also co-sponsor of the 2012 TCCA along with Pelosi and Waters, that funnels to UST 10 bps guarantee fee in the form of TCCA fees.
So, it seems that he just came up with another scheme to siphon more funds off to UST and override the Charter's Fee Limitation of United States posted before.
But, unlike the TCCA fees pursuant to the TCCA, these CRT expenses are illegal. It's not one of the 3 credit enhancement operations authorized in the Charter Act.

This is why we are requesting a cash refund worth $17.3 billion, the amount of CRT expenses, net (turned into Retained Earnings. They now pay taxes as they were deductible expenses), and a posting on the Retained Earnings account (Core Capital) to protect FnF against unexpected losses (Capital ratio -Basel framework-)

Notice that the PLMBS were also barred in this Credit Enhancement clause (lack thereof). This is why with the CRT expenses, we have drawn the line regardless whether the recipient is the UST or Wall Street.