Fannie Mae-No Politics (FNMA)

[kthomp19]

The FHFA is signing agreements with Treasury. Now, for the first time since 2008, they have been called out for signing horrific agreements that make no financial sense to shareholders, and arguably highly questionable as to the best path for the GSEs themselves.

Only FHFA has been thus "called out". Not Treasury, who wasn't a party to the case. My assertion stands.

If there is to be any future agreements or a restating of prior agreements to adjust or remove any language that was in breach of fair dealing, I believe they will not have as much leeway on the level of ridiculousness in accepting horrible contract terms.

The language that breached the implied covenant was already overwritten by the September 2019 and January 2021 letter agreements. And any agreement or amendment that helps the companies cannot be horrible for them.

The agreement could be restated to replace the NWS with something else like a fixed rate that is more in line with fair dealing.

Again, the violation of the implied covenant does not actually change any terms of the agreement. Nothing needs to be "fixed" as a result of the verdict.