Replies to post #575558 on Fannie Mae-No Politics (FNMA)

[Saywhat79]

Does Mark C help craft the HERA law?

[obiterdictum]

No loans are involved.

Ok, I'm tired so if I dont make sense please forgive me.

But if warrants and senior class C stocks were purchased, not a loan because there is no principal, terms, etc... the purchase would be through allowance of a 200 billion draw correct? That was the payment if I'm following, the ability to draw if necessary.

Yes. The SPSPAs are agreements with terms, conditions and covenants determining the arrangements for the US Treasury to receive as consideration Senior Preferred Stock and Warrants to Purchase GSE common stock for providing the GSEs access to funds as needed.

But part of that agreement was to receive all profits and in addition all capital except the 3 Billion reserve.

Yes. The NWS was not part of the original 2008 agreement. The NWS was included in the Third Amendment of the SPSPAs and became part in 2012.

So Treasury purchased all future profits.

Essentially, that is what it boils down to and that is a reason for the Third Amendment and the NWS being contested in courts.

And FHFA acting as conservator made such agreement with Treasury, which does not appear to be an act consistent with conserving the companies.

Yes, the 2012 version of the agreement is an expropriation, an illegal exaction, a taking, and a violation of various USC statutes and the US Constitution.