Replies to post #747141 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Actually no. FHFA did those things immediately after appointing itself conservator. FHFA doesn't have that kind of power over FnF when they are out of conservatorship and classified as "adequately capitalized" by HERA.

So what are the limitations on the power of the FHFA post conservatorships? Did they enumerate those in HERA? Are they broad and open ended, like "maintain safety and soundness and make sure they are committed to affordable housing"?

The traditional problem with so many of these federal government agencies is that the US Congress in their enabling and subsequent statutes grants them these open ended mandates and authorities and they bend and twist them to carry out a POTUS action that might never make it through the US Congress.

The DJT CDC Eviction Moratorium and JB having the EPA decide which fuels the nations utilities will use in the generation of electricity are 2 examples.

JB's student loan forgiveness through the Department of Education may be another.

What if anything limits the FHFA's power as a Regulator in HERA?

They would make even more money by converting the seniors to commons, and everything else would be exactly the same.

Wouldn't the US Government maximize its profits even more by turning the Cash Net Worth Sweep on? Why not grab $50B or so out of the capital of the GSES say for mortgage loan forgiveness (It would be a special one time dividend payable EXCLUSIVELY to the senior preferred shareholder to fund it? It's "in the public interest of the FHFA or the public it serves", right? You know, this is an EQUITY investment by the government not debt, right?