Fannie Mae-No Politics (FNMA)

[Wise Man]

The CEO of Fannie Mae was referring to the Separate Account.
That's why she talked about the rehabilitation of FnF.
Otherwise, under the ERCF tables, the financial condition of FnF is awful.


Let alone the adjusted numbers. Adjusted for the offset (reduction of the Retained Earnings account) when the SPS LP is increased for free every quarter.
A combined $402 capital shortfall over Minimum Leverage Capital requirement. Rehab?
Rehabilitation of FnF is considered the prerequisite laid out by justice Alito and judge Willett, when they interpreted the Incidental Power: any action "authorized by this section", also taking into account the etymological definition of "incidental" (without an express grant of authority, they help it to fulfill the main power), adding the Marxist-way "beneficial to the Agency and the public it serves" for the extortion of resources in the meantime, with the sale of loans with a debt forgiveness string attached, and REO inventory to Goldman Sachs & Co, Neighborhood Associations, women- and minority-owned businesses, etc., and mess around, because the law doesn't say "beneficial to the Agency" but "best interests", to transmit the idea of "monetary benefit" and play the conspirators' game of Govt theft story for stock price manipulation.
The interests of an Agency with regard to the companies it's regulating, are related to activities, not to take their profits away.
This is the key for the Separate Account plan, because those interests chosen by FHFA, have been to mislead the world holding the Common Equity in escrow. Good. But at same point the External Position has to be returned for the rehabilitation of FnF, which, in this world, occurs only on the Balance Sheet, unless you live in Europe with the large scale fraud in their Central Banks' Payment Systems Target2 and TIPS (Bundesbank: "External Position". Give me a break.)

If you refuse to watch the ERCF, then watch their Balance Sheets (concealed when the corrupt litigants submit to court their own manufactured charts, instead of the Balance Sheets. A picture of a company), with outstanding Accumulated Deficit in their Retained Earnings accounts, that are meant to absorb future (unexpected) losses. Capital Stocks don't absorb losses, they just offset a negative RE, so the Net Worth is positive avoiding bankruptcy (example: the effect of the SPS in early conservatorship. Watch my signature image below). This is why the issuance of stocks "fund the losses", they don't bear the losses (representative Hensarling called the SPS "taxpayer's losses"). By the way, what the Fed should have done instead of its surreal Deferred Asset: fund the losses with issuance of capital stocks.

What the Capital ratios are for: to cover future unexpected losses, as the expected losses have already been reserved (asset write-down, as seen in the Balance Sheets below) in the Allowance for Loan Losses, under the CECL accounting standard (it assumes that the loss already occurred. Yet, it might be recovered down the road -Benefit for loan losses, instead of Provision for loan losses-)
Although RE can be negative (caused by past losses), it's common sense to think of "Financial rehabilitation" in the sense of turning it around and have a positive balance again.
Let alone the payment of dividends. A distribution of Earnings, you need to have a positive balance in the first place to distribute it out (then, there are thresholds to meet. Table 8: Payout ratio)

These are their Retained Earnings accounts as of September 30, 2023:
Official/Adjusted for offset attached to the gifted SPS ($ Billions)
$FNMA: -60/-134
$FMCC: -38/-83




This is the outcome when the SPS LP increased for free is posted on the balance sheet, as it should be (Financial Statement fraud), with the goal to peddle the lie of "FnF continue to retain earnings and build capital" (Ackman, Bradford, Sandra Thompson, etc.). Neither FnF are retaining earnings if it's later wiped out with the offset, nor they build regulatory capital (RE), but capital stock (SPS). A visual example of Common Equity (RE) held in escrow to uphold the law: the exception to the Restriction on Capital Distributions (Recap: CFR 1237.12) and the FHFA-C's Rehab power)
Freddie Mac:


The Retained Earnings accounts will be $236 billion combined with a posting, under the Separate Account plan and after retiring the Treasury Stock (stock buybacks).
Combined Equity (Balance Sheet) comprised of:
$0 par value Cs
$236B Retained Earnings accounts
$ current small amount of AOCI.

Common Equity calculated with the Accumulated Total Comprehensive Income in full (dividends suspended) + PLMBS lawsuit settlement, net of attorney fees + CRT expenses, net.
CET1 > 2.5% of the Adjusted Total Assets.
That's rehabilitation.