Fannie Mae-No Politics (FNMA)

[Wise Man]

Rep.Ogles was reprimanded for attempting to pass the Conservatorship off as Nationalization.
Magnificent response by HUD secretary Fudge last Thursday to the representative from Tennessee, Mr. Ogles.
She had to repeat three times that FnF have plenty of capital to lend, because the representative, as a way to endorse stock offerings to the hedge funds, was calling the release from Conservatorship "privatization" and using as excuse, that the private capital raised is what is necessary for lending and to have impact on rents and mortgages.
For instance, stock offerings addressed to the controversial hedge fund manager from Tennessee Tim Pagliara, who set up a phony Association of Shareholders "Investors Unite" to rip them off (Warrant, 10% dividend, swap Ps for Cs, gifted SPS hidden and Shareholder Rights advocate when there is no need, as our rights and powers are very well preserved momentarily by the conservator, which translates into multiple stock offerings)
Mr. Ogles:

With more increase in privatization of the GSEs, we would see more available capital on the market.

If the GSEs were privatized and they had access to private capital that they can, in turn, lend.

Because part of the solution is more homes, the GSEs providing capital into the market, would that not be part of the solution, not a silver bullet, to fixing the housing crisis and the economy?

It seems that Mr. Ogles doesn't know:
1- The private capital to lend, is provided by the MBS investors.
2- Conservatorship preserves their status as private shareholder-owned enterprises.
3- The Conservatorship has been business as usual, as far as lending/pricing from FnF is concerned, other than the guarantee fee hikes recommended by the Treasury in the 2011 Report to Congress (Source), as part of the "recommendations on ending the Conservatorships" at the request of the Dodd-Frank Law, bound for a Privatized Housing Finance System, which means fully private housing finance market, not "privatization of FnF" (Telephone game). Currently, the g-fee is slightly higher than two times the one in 2008 (62bps vs 28bps)

Continuing with the idea of widespread usage of the Telephone game playing with words, Mr. Ogles was told to endorse stock offerings and he came up with the idea of the capital necessary for more lending on the market, mixing up capital "cash" with regulatory capital "Equity".

Secretary Fudge started out responding to the suggestion that the Conservatorship has affected the availability of mortgages on the market, with:

I do not believe so.

Then, when Mr. Ogles specifically linked the benefit of "privatization" (release) to the availability of mortgages with the remarks mentioned before, she replied:

"The GSEs right now have about 6 trillion dollars. They have plenty to put resources into the market...."

But, due to the insistence of representative Ogles in a "privatization" necessary for more lending, certainly not the purpose of the hearing, she ended up stating emphatically, rising her hand this time to make her point:

I'm just saying that there are resources and they are now, for them to do the lending that we needed to have done.

Representative Ogles attempted to save his intervention with another out-of-the-box remark:

If we find again impediments with the GSEs as it relates to HUD and there is a correlation there, we will certainly reach out.

Sec. Fudge:

That would be great.

Which sounded like:

Jesus! Who is this guy?

5 hour 12 minute mark: