Replies to post #682232 on Fannie Mae-No Politics (FNMA)

[Wise Man]

The NWS is legal because HERA authorizes unlimited yield SPS. Other theme is that the Capital distributions are restricted unless it's applied toward repaying the obligations SPS.
And other theme is that, prior HERA, there was another provision with low cost UST backstop that is the one that will prevail at the end.
Fell free to read the law.