Fannie Mae (FNMA)

[Wise Man]

FACT: The authority of UST was about the PURCHASE of securities, and it hasn't purchased even one security.
No one has ever wondered how is this even possible.
It all began with the issuance of $1B worth of SPS free of charge (1 million stocks at $1,000 per stock), with the objective to reduce the Core Capital in the same amount (It carries an offset: it reduced the Additional Paid-In Capital account. Source) and justify the Conservatorship with (G) LOSSES: Likely to incur losses that deplete capital.
Since then, all the SPS LP corresponding to the draws from the UST (1:1) has been increased and that's a Securities Law violation because the securities must be dated at the time the company raises fresh cash, and necessary for the deed of purchase (necessary for the capital gains tax, etc).
Other theme is that, for reporting purposes, they can be unified in one security if they have the same price and characteristics.
The objective was to skip the deadline on the "TEMPORARY" second UST backup of FnF inserted by HERA with unlimited yield SPS, of December 31, 2009, because the deadline refers to the authority on PURCHASES mentioned, and there's been none.
The Warrant is another security that was issued for free on day one, in an attempt to override the prerequisite on PURCHASES by the UST of (iii) to protect the taxpayer (collateral). Once spotted, collateral it is. Collaterals aren't allowed in the original Fee Limitation of the United States ("PROHIBITION...."), this is why Calabria/Pelosi's HERA continues to raise our eyebrows.

This is one of the 7 Securities Law violations that need to be settled and also it serves as Punitive Damages that the Equity holders require to the DOJ. Although the common shareholders waive this claim in the case of "as is" and "takeover" resolution of Fanniegate, not in the case of a Takings at BVPS.
The same with the second round of Punitive Damages due to the Deferred Income accounting, in the case that it's allowed to amortize it into Earnings in one fell swoop without the existing shareholder ($61B Deferred Income together as of end of 2023, is recorded as Debt, not Equity. $42B in Freddie Mac alone)
The third round of Punitive Damages, is against the plotters of the government theft story in formal documents: court briefs, books, articles, etc., for the cover-up of many statutory provisions (Restriction on Capital Distributions; "May" recap is imperative once the capital is generated; etc.) and financial concepts (Dividends, a distribution of Earnings, unavailable with Accumulated Deficit Retained Earnings accounts).

2- SPS LP increased for free since December 2017 and its offset, are missing on the balance sheets (Financial Statement fraud)
3- Fannie Mae posted a charge on the Income Statement, when no SPS LP was required to be increased in the 1Q2020 Earnings report.
4- Stock price manipulation.
5- The value of the Warrant was credited to Additional Paid-In Capital account.
6- Dividends paid out of an Accumulated Deficit Retained Earnings account (for the Separate Account plan).
7- CRTs. Although it's a breach of the Charter Act (Credit Enhancement clause: not among the enumerated ones), it's included here to simplify and because it can also be considered a Securities Law violation. A credit enhancement operation in mortgages where the credit event is the credit loss, is a scam, because it occurs after the company carries out costly foreclosure prevention actions. For instance, Freddie Mac's STACR DNA or HQA notes. Whereas the credit event that triggers the claim of payment in the STACR DN or HQ notes, is serious delinquency. Since 2015, Freddie Mac only issues the former.
They are an excuse to make FnF pay an outstanding annual rate of return on these debt notes, currently between 9%-13% rate (Source: Earnings reports).
The CRTs look more like a continuation of the fraud in early conservatorship, with their 30-year zero coupon callable Medium Term Notes, redeemed at a 5% and 6% annual rate of return soon after they were issued, as a way to extort money from them, commented on Friday showing documentary evidence.

With the CRTs they made a mistake.
$19B in CRT expenses/recoveries is due because it's barred in the Charter Act, no questions asked.