Fannie Mae-No Politics (FNMA)

[Wise Man]

DeMarco was not wrong. There is no "abusive conservator".
With the no Chevron deference, the hedge funds want to bury the CFR 1237.12 that has already been covered up by their representatives in the U.S. courts (the plaintiffs), and enacted by the former FHFA Acting Director on his Time Limitation-day (July 20, 2011), to continue ((c) it supplements) the plan of deception with the capital distributions: "The Common Equity is gone!".

This way, as of that day, a capital distribution is authorized if (Exemption 1) it "enhances the ability to meet the Risk-Based Capital level and the Minimum Capital level of the enterprises", now seen in the ERCF. The exemptions 2, 3 and 4 are more of the same, because the whole thing "supplements" the restriction by statute, U.S. Code 4614(e), meant for the Recap too, even if the SPS are repaid (its exemption) at the same time, because the SPS are repaid with cash, whereas the Capital remains recorded on Equity (double-entry accounting).

That is, deplete capital in FnF (capital exits the Balance Sheet) if it recapitalizes FnF, which obviously refers to a Recap now outside their Balance Sheets (External Positions seen in the ECB's Payment Systems).


DeMarco understood that the capital distributions are restricted and it's been upheld during the entire conservatorshp:

-Capital sent to the UST. External Position or Separate Account ($301B in dividends, both the 10% and the NWS dividends), which repaid the SPS at the same time, estimated fully repaid at the end of 2014 in Fannie Mae and one year earlier in Freddie Mac (signature image below).

-Capital held in escrow ($132B through the offset -reduction of Retained Earnings account- attached to the $132B SPS LP increased for free since December 2017, both items absent from the Balance Sheets. Financial Statement fraud).


It's not that DeMarco went crazy and approved the NWS dividend ("unchecked decisions"), as you want us to believe under the orders of the hedge funds.
All the decisions were checked and well checked. The NWS dividend avoided the losses prompted by the 10% dividend (called death spiral), so that no capital is sent to the UST if FnF post losses (or the case when it's the very dividend the one that prompts the losses), the same premise seen in the 1989 bailout of the FHLBanks that was used as a template for FnF with the assessments sent to a "SEPARATE ACCOUNT TO ENSURE PAYMENT OF PRINCIPAL".


You are repeating the harassment to DeMarco that began in the Lamberth trials.

Anyone could have spotted the restriction, all the exceptions and an Incidental Power that allows the conservator to implement those actions ("authorized by this section") in a way that is in the best interests of the FHFA. A decision-making for the Privatized Housing Finance System endgame, with its desire to get rid of the AT1 Capital instruments (JPS) held mostly by hedge funds and Community Banks.
With this plan of deception, it also aims to get rid of the common shareholders, perplexed with the con operation in court with the collusion between the parties, that simply abandon the ship as we see in the annual data of number of shareholders of record in their Earnings reports.

Notice that, with the "FHLB membership cleansing" of 2016, the FHFA wanted to get rid of the hedge funds too, that used "captive insurers" with the objective to have access to the low cost borrowing from the FHLB System.
By the way, this 2016 Final Rule, not only gave the FHLB 5 years to "wind down their affairs with them", but also this rule was first proposed in 2010, which shows that the FHFA has been delaying it until FnF had built enough capital (2022), thinking of the Coop Model that would include the FHLB, already seen in the 2011 bill HR 1859 and the FHFA's pilot programs with the States' and Municipalities' Housing Finance Agencies (HFAs), using "Freddie Mac HFA Advantage Mortgage" to bundle their mortgages because at the time, Freddie Mac was already operating in the Common Securitization Platform, and at the time of Mel Watt (mid 2018).
Therefore, we see how the Membership is very important for the FHFA in a new Housing Finance System, and the reason of this overtime in the Conservatorships: you can only get rid of the AT1 Capital if FnF hold CET1 > 2.5% of ATA beforehand. Then, the Tier 1 Capital > 2.5% of ATA in the ERCF would be met.
T1 = CET1 + AT1.
This is harsh for the battered Non-Cumulative dividend JPS holders (Regulatory Risk: capital requirement from 0.45% to 2.5% of MBS), as it's been one year and a half without the resumption of dividend in the Fannie Mae JPS and one year more in the Freddie Mac JPS, under this Separate Account plan, but lawful (Conservator Risk), which is all that matters.

You mention Chevron with the same objective as others with other slogans.
As I replied yesterday to Bradford:
Quit repeating the PR campaigns from Bill Ackman and Pagliara, the peddlers of the Government theft story, who stick to

This is now 100% a Trump trade.

, because they foresee a backlash from investors for their plan of deception.

There is no government theft.
Thanks to DeMarco, the current NWS 2.0 brought to you by the Trump Administration, can go on. Just so you know, the Common Equity swept is held in escrow.
We stand with DeMarco: