Replies to post #382236 on Fannie Mae-No Politics (FNMA)

[obiterdictum]

1. If you don't understand what I put forth. You don't understand amortization schedules and how simple interest works.

What I have presented is the factual draws and interest payments recast to reflect 5% on a quarterly basis -v the 10% and then NWS for the entirety of the relationship as stated in Cap's 491.

I understood what was presented. It is not what is asked for in the bill.

In accordance with the bill, there are 4 amortized loans for Fannie and five for Freddie for 30 years at 5% with dividends paid to be treated as payments of principal and interest due under these loans and in accordance with the 30 year amortization schedule and Paragraph (3) of the bill. See below

Where are the 4 loans for Fannie placed on a 30 year amortization schedule in the presentation? Were the dividends paid as principal and interest due in accordance with the 30 year amortization schedule wherein dividends paid are given to the first unpaid loan having the earliest origination date, followed by the next origination date as Paragraph (3) directs?

What you failed to do is apply the payments already made that would reduce the principal far faster than the schedule you put forth. In Home Lending, its just a prepayment. That you failed to reflect.

Yes. That was not explicitly stated. However, the example given was to point to the fact of a 30 year amortization schedule as required in the bill. As far payments of principal and interest and dividends paid in go, the totals in that 2009 schedule given can be considered paid in full as per Paragraph (3) of H.R. 491. This is not an issue. The issue of overpayment and underpayment is found later when dividend payments totaling $154,375,000,000 have been assigned as Paragraph (3) directs to each amortized loan schedule and then determined if dividend payments exceed or not the principal and interest due.

3)Treatment of dividends paid
That any dividends paid by the enterprise to the Department of the Treasury under the Senior Preferred Stock Agreement before such modification of such Agreement shall be treated as payments of principal and interest due under the loan referred to in paragraph (2), and shall be credited against payments due under the terms of such loan (in accordance with the amortization schedule established for such loan pursuant to paragraph (2)(E)), first to such loan having the earliest origination date that has not yet been fully repaid until such loan is repaid, and then to the next such loan having the next earliest origination date until such loan is repaid.

2. If they do this you can forget that 30 year amort thing.

jeddiemack, that is not what the bill says to do. The bill requires a 30 year amortized schedule. Whatever the dictated 30 year amortization schedule will be, (I do not know) it will not be what was presented as that does not fulfill the clearly stated provisions of the bill.