Replies to post #387820 on Fannie Mae-No Politics (FNMA)

[Potty]

Rek, I was not criticizing, I appreciate that you think the longer timeline is just the way it is

I also appreciate the role of HERA. IF Bush admin had gone the BK route, then we as stakeholders would be toast. OFC they could not go that route cos the Chinese, Japanese etc states were holders of the bonds -- and would have been outraged at a BK.

Instead, we got the botch-job that is HERA PLUS the bastardization of it by both Bush and Obama administrations. I agree that HERA is the root of all the legal tangles -- or the Bush and Obama interpretations of HERA are...

On incentives of Trump admin:
(i) Settling lets them end-run congress to get FnF onto a course to being government-free (my idea is you set them off in that direction through settlement such that Congress just has tidying-up legislation to pass...) and this avoids congressional quagmire;
(ii) Trump gets credit for "fixing" housing in first 6 months/ 100 days;
(iii) Trump allies get payday which pays off campaign commitments;
(iv) Trump gets deep pocketed backers for next campaign;
(v) the availability, and cost, of 30 year mortgages is lowered giving a boost to the Trump voter base.

There are more, but I think Trump has quite a few reasons to get this down fast...

[Barron4664]

I disagree with your opinion. You should qualify your statement that it is your opinion. You state as a fact that there can be no settlement. Unless you are privy to the process you have no way of knowing whether or not there can or will be a settlement. Just that you believe based on your knowledge and experience that there wont be one. Correct me if wrong but arent most of the lawsuits concerned with the NWS and breach of contract claims wrt the NWS using the APA or a takings claim? The statute of limitations is up or almost up. So that leaves the Deloitte case and the collins case and Washington Mutual as the main lawsuits that might not be a party to a Settlement of the NWS and breach of contract claims. Government could settle the majority of cases if they wanted by ending the NWS. How they choose to recapitalize the GSEs and treatment of warrants is the issue that could result in new takings lawsuits. But that would only be a problem if Gov makes it an issue. So I see a scenario where the bulk of cases are settled which removes the big hedge fund funded lawsuits and allows for an orderly exit out of the conservatorship. That is just my opinion.

[Steelhead9]

The government won't settle because they have no incentive to.

Of course, the definition of the term "Government" changed on Jan 21. Are ...

Rewarding your supporters

and

Embarassing a prior Admin that you view as an enemy

... be considered incentive?