Replies to post #465793 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

The only thing I smoke is an occasional pork butt on the charcoal grill.

It is not that I necessarily disagree with your comments on banks, term changes and the NWS. But unfortunately for you, saving the banks, modifying the SPSPA and implementing the NWS are LEGAL under HERA. As an example, saving the banks from their own sins can clearly be viewed in the light of saving the GSEs from demise if all the mortgage banks quit issuing new loans, triggering a real estate decline that would devalue FnF's asset portfolio by as much as 25%. Back in 2008, 25% of approximately $3 T would be about $750 B (which looks to me tad above the $187.5 B bailout amount.

What I am basically saying is: even if you are right, you still LOSE unless HERA gets repealed.

Sorry, That is the way the law works.

[jog49]

"This whole Conservatorship was to cover up the Banks screw-ups"

I'll disagree with this part of your statement. The conservatorship was to cover up what the banks/lenders had intentionally done by piling on of toxic/risky mortgages to Fannie and Freddie in their bundled securities.
There were no "screw-ups" as their intent was clear...…..make tons of money because F&F are accepting what we are bundling, without question, and if the mortgages go bad, it's their problem, not ours. Fannie and Freddie are a bit to blame for not calling out the banks/lenders but the bulk of the blame lies with those bundling the mortgages because they knew what they were doing. They then got further help in this scam from one of their own in Hank Paulson who was content in receivership and extinction if it keep the ill gotten funds with his cohorts. When caught and sued by the FHFA, every one of those passing the bad paper quickly settled, without as much as a whimper, for a figure substantially less that the total of bad paper they had sent to Fannie and Freddie and had all their bought and paid for politicians muddy the waters to keep what happened unclear. So far, it has worked. The banks/lenders still have won after their own wrongdoing and the government seems to be their willing protector.