Fannie Mae-No Politics (FNMA)

[955]

Actually, the answer is quite clear. On the one hand the president and the congress do not support a return to privatization of the GSE's while on the other hand they 'seemingly' cannot come up with an alternative replacement for them either. There is a third possibility that is much deserving of consideration and more than that, a significantly likely outcome based on their actions thus far. They know what they want. They have a plan. They know it is in violation of standing constitutional law, but they do not want to rile the masses. So they continue along the path of status quo, which in effect is nationalization, whiling appearing to be searching for a solution. They now have in their possession what they originally set out to obtain.


"So what do we have here? Federally chartered, privately held shareholder companies with a public mission in a temporary conservatorship or a nationalized secondary mortgage market industry administered through nationalized Fannie and Freddie?

They cannot be both.

The answer is unclear at the moment since HERA 2008 and parts of the 2008 and 2009 PSPAs are still in force at the same time as the 2012 3rd PSPA amendment. It will take the currently filed lawsuits to cut through the legal Gordian Knot created by the enactment of the 3rd amendment to the PSPAs.

All PSPAs here:
http://www.fhfa.gov/Default.aspx?Page=364

The 113th Congress can be counted on to make things worse and they have done a brilliant job of that so far. Only one out of five made it out of committee and that bill advocates for a totally private mortgage and secondary mortgage market that will never be enacted. It is DOA."