My thinking process was that since Mel Watt can't release FNF from consevatorship without US Treasures consent (based on our previous messages) other than receivership, the only incentive for TSY consenting it would be making money by selling their senior preferred shares.
Sorry for the late reply...
According to HERA 2008, Section 1117(a)(2) and (b)(2), Treasury can sell senior preferred stock, within the law and SPSPA provisions, at any time and without permission from the FHFA or GSEs.
However, if the 2016 FY appropriations bill succeeds (Consolidated Appropriations Act, 2016), then according to Section 702(b). Limitations on the Sale of Senior Preferred Stock, Treasury may not sell until at least January 1, 2018.
Consolidated Appropriations Act, 2016 Section 702(b). Limitations on the Sale of Senior Preferred Stock 3 (b) LIMITATIONS ON SALE OF PREFERRED STOCK.— 4 Notwithstanding any other provision of law or any provi- 5 sion of the Senior Preferred Stock Purchase Agreement, 6 until at least January 1, 2018, the Secretary may not sell, 7 transfer, relinquish, liquidate, divest, or otherwise dispose 8 of any outstanding shares of senior preferred stock ac- 9 quired pursuant to the Senior Preferred Stock Purchase 10 Agreement, unless Congress has passed and the President 11 has signed into law legislation that includes a specific in- 12 struction to the Secretary regarding the sale, transfer, re- 13 linquishment, liquidation, divestiture, or other disposition 14 of the senior preferred stock so acquired 15 (c) SENSE OF CONGRESS.—It is the Sense of Con- 16 gress that Congress should pass and the President should 17 sign into law legislation determining the future of Fannie 18 Mae and Freddie Mac, and that notwithstanding the expi- 19 ration of subsection (b), the Secretary should not sell, 20 transfer, relinquish, liquidate, divest, or otherwise dispose 21 of any outstanding shares of senior preferred stock ac- 22 quired pursuant to the Senior Preferred Stock Purchase 23 Agreement until such legislation is enacted.
The incentive to sell is not limited to making money for the Treasury. There are political incentives, Administration directives and a host of factors related to power and control in the US housing finance system via the secondary market that are involved.
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