Fannie Mae-No Politics (FNMA)

[Wise Man]

What the famous "wind down" rhetoric was really about.
Besides wind down the Investments Portfolio (PLMBS), wind down the affairs of FnF with the Equity holders, FHLB-style.
It can only be done once the CET1 > 2.5% of the Adjusted Total Assets in the case of the JPS, and a Takings (Treasury) or a takeover (bigger players in Housing Finance) in the case of a common stock at the adjusted fair value as of December 31, 2023.

The Equity holders have been deprived of one year of dividend payments in Fannie Mae, and two years in Freddie Mac (Separate Account), just because the FHFA didn't want the JPS around trading at par value since the date of dividend resumption, for the expected Privatized Housing Finance System revamp (Charter revoked), chosen for the release in 2011.
In the case of the JPS holders, this is devastating with the stock valuation of a fixed-income security with a Non-Cumulative dividend.
We are talking about "any action authorized by this section, in the FHFA's best interests" (FHFA-C's Incidental Power)
There can be no rebates to make up for these losses. No "outstanding obligation to be honored" has emerged in the Lamberth court.
Blame the FHFA.

Those fighting the difference in stock valuation between common stocks and JPS, are fighting a losing battle.

$FMCC
Expected refund:$76B
Separate Acct: CET1=2.8% of Adjusted Total Assets. JPS can be redeemed and still meet Tier1>2.5% ATA (ERCF),satisfying the @FHFA's will: get rid of the unwanted Equity holders(FHFA-C's Inc Power)
"Wind down their affairs w/ them", FHLB-style.#Fanniegate pic.twitter.com/s37vdZnpDh

— Conservatives against Trump (@CarlosVignote) February 15, 2024