Replies to post #629045 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

Ridiculous. The Federal Home Loan Banks were granted permission by FHFA to contribute 20% of earnings to a heavily restricted capital account, subject to thresholds. To claim that such an arrangement apllied to FnF would provide some secret escrow of senior preferred dividends is ridiculous. And to cite such action as a pathway to ending conservatorship and building the proposed critical mass in the Enterprise Capital Proposal would only be possible by taking the "Slow Boat to China" in a decade long travail.

[bradford86]

"there is no iterim step..." well then, have you read the plan? because I see one... as part of the treasury housing reform plan..

Look at step 22 on Page A-3 here (page 50).. copied directly out of the treasury plan with emphasis on the word iterim:

Pending that recapitalization plan, and as an interim step toward the
eventual PSPA amendment contemplated by this plan, Treasury
and FHFA should consider permitting each GSE to retain earnings
in excess of the $3 billion capital reserve currently permitted, with
appropriate compensation to Treasury for any deferred or forgone
dividends.

https://home.treasury.gov/system/files/136/Treasury-Housing-Finance-Reform-Plan.pdf?mod=article_inline