Replies to post #750108 on Fannie Mae-No Politics (FNMA)

[navycmdr]

Jared Bernstein on Affordable Housing Trust Fund / Fannie & Freddie ...

[nagoya1]

Hey Burnstine- how about mentioning how much the GSEs actually repaid or was it too much effort to do some actual investigative reporting. Do u speak accounting?

JarHead former economist forgot how to do simple math and understand a balance sheet.

Lay off the bagels and do us a favour by including real facts.



Fnma

[Wise Man]

Jared Bernstein calls FnF "Housing Finance Agencies", mixing it up with the State and Municipalities' HFAs, expecting that no one will notice it.
It's like their congressionally chartered private corporation status, suddenly disappears at the stroke of a pen. A conservatorship preserves their status.
1968 Privatization Act:

The Utility Model is about regulating the maximum guarantee fees the guarantors can charge. You can't amend a Charter into something totally different, which is currently happening with so many "fees" charged by the United States using the assets and securities of FnF (4.5 bps for 2 Affordable Housing trusts managed by HUD and UST; 10 bps TCCA fees, renamed BBB fees when they expired in 2022) added by Pelosi's HERA (sole sponsor) in 2008, something explicitly prohibited in the Charter (PROHIBITION ON ASSESSMENT OR COLLECTION OF FEE OR CHARGE BY UNITED STATES). In that case, you'd have to revoke the Charter and start a new Housing Finance System from scratch. There are so many confronting provisions in the Charter Act (like these fees prohibited and 2 UST backups with the addition of unlimited yield backup in HERA. Although the latter expired in December 2009, the FHFA and the UST pretend that it's still active with the SPSPA's funding commitment, but it seems that no one else noticed it), that it's enough reason for the President of the United States to revoke the Charters using his constitutional authority:

The President shall take Care that the laws be faithfully executed.

What the hedge funds like Timothy Howard would like to see, is a Conservatorship 2.0 for the continuation of the extortion of resources out of FnF, under the guise of normal operations with FnF (CRT; sale of NPL and RPL to Goldman Sachs and minority- and women- owned businesses; sale of REO inventory to Neighborhood Associations,...)
That's what they call "Utility Model".

[Donotunderstand]

Thank you

Interesting

Seems - as I have posted- there was a goal at the WH to revive F and F --- but it ran into a wall when that would leave them dominant - near monopoly - as opposed to one of many

Seems - again with my fast read --- a stalemate occurred and we lost

[955]

What timely payment of principal and interest? It's been 15 years and we're still waiting!

"Fannie Mae and Freddie Mac attract to the secondary mortgage market investors who might not otherwise invest in mortgages, thereby expanding the pool of funds available for housing" by permitting Treasury/FHFA to steal initial investment capital, principal and interest from these very same investors. "That makes the secondary mortgage market more liquid and helps lower the interest rates paid by homeowners and other mortgage borrowers." Robbing Peter to pay Paul. There, fixed it.

Here’s how the agencies’ regulator explains it: “By packaging mortgages … and guaranteeing the timely payment of principal and interest … Fannie Mae and Freddie Mac attract to the secondary mortgage market investors who might not otherwise invest in mortgages, thereby expanding the pool of funds available for housing. That makes the secondary mortgage market more liquid and helps lower the interest rates paid by homeowners and other mortgage borrowers.”

Mortgage forgiveness. It's coming.