Replies to post #746068 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

Why not Calhoun? Probably because Sandra Thompson's nomination was more than a year ago. At that time, it was not yet foreseeable that Biden would lose the midterms and that he would not be able to push through his BBB plan, which included a lot of money for affordable housing.

[LuLeVan]

I think another problem with the cash out now theory is that if the NWS is subsequently vacated by any court for any reason than would the government be liable for potentially billions?

As snail-slow as the courts work, this would take years, and by then another admin would be in office.

Isn't it a violation of the Separation of Powers for a POTUS to spend $100B on his own latest pet project?

Only after the court decision, see above. By then, Biden will have long since retired.

If JB sets up a $100B affordable housing plan, couldn't a subsequent administration dismantle it?

In principle, yes, but the new government cannot recoup the money that has already been spent on affordable housing. When it comes to spending money, Biden is often faster than expected.

[MannSinger]

Give $100B warrants to GSE for affordable housing.

1. If Gov exercise warrants then $100B goes to general treasury pot which is subject to Congressional control. Then Dems cannot use for affordable housing and other PET project.

2. If Gov gives warrants back to GSEs to use that $100B over 5-10 years for affordable housing then congress or next Republican President can't do anything.

3. Biden has to move fast because it will take 6-8 months to recap GSE & starts financing down payments and multifamily houses then only Dems can see effect on 2024 election. This will prevent student loan forgiveness fiasco where Dems instead to passing law from congress they played politics to expose republicans. Now, student loan holders are mad at Dems.

Remember, When BO made deal with TBTF banks to give part of settlement money $100M+ to nonprofit Org (Antifa?), then Trump could not stopped it and TBTF gave to Millions to these Nonprofit org during Trump's tenure.

[JOoa0ky]

Did you miss the whole discussion about how Calhoun was the front runner but then got overturned behind the scenes? It was right before Sandra's nomination.

https://howardonmortgagefinance.com/2021/10/19/comment-on-ercf-rule-amendments/
"As I’ve said before, I wish I knew what happened for the Biden administration to have gone from telling Mike Calhoun on a Friday that he would be nominated to be the next FHFA director the following Monday, only to have that put on hold over the weekend, then to have Sandra Thompson nominated for the position, and today to hear all members of the Senate Banking Committee, including Democrats, sing her praises. But the banks clearly have won. It now seems highly unlikely that there will be any administrative release of Fannie and Freddie from conservatorship for as long as Sandra Thompson is the director of FHFA. And it will take a highly visible “wake up call” or crisis—stemming from the consequences of allowing the banking industry to effectively set the pricing for the $6.8 trillion Fannie and Freddie MBS market in a way that advantages themselves and disadvantages low- and moderate-income homebuyers—for a new FHFA director to be named. What a missed opportunity."

So why didn't Biden nominate Calhoun (the author of the affordable housing plan) instead of Thompson who has considerable and deep banking regulator credentials?