Replies to post #756326 on Fannie Mae-No Politics (FNMA)

[trunkmonk]

What’s most interesting they always talk about and find something that is bad for shareholders, yet never mention Judges, in 2019, ruled NWS unconstitutional, which is why SM the snake invented SPSPA rules on the way out the door. Just more piled on legal jargon to cloud the theft. 5 circuit found FHFA overreaching. Treasury is stil biggest thief in all history.

[kthomp19]

Also some people mistake the SPSPA and subsequent amendments for the law. They aren't. The law is HERA. Nowhere in HERA does it prevent a pay down of the principal.

HERA does not prevent the senior pref liquidation preference from being paid down, but neither does it specifically allow such a paydown. It is silent on that issue. Therefore the terms of the SPSPAs control, which prohibit voluntary paydown prior to termination of the funding commitment (absent certain conditions that have never in fact occurred, as Judge Lamberth put it).

The SPSPA and amendments were signed by heads of FHFA and Treasury. The current heads of the same agencies can undo the crooked deals their predecessors signed.

Let's say Treasury actually allowed FnF to pay down the liquidation preference starting tomorrow. Fannie had a net worth of $64B at the end of Q1 2023 but a senior pref liquidation preference of $182B. Freddie's net worth was $39B with a senior pref liquidation preference of $110B. The companies could put every penny of net worth towards paying down the seniors and still not even get rid of half of the liquidation preference. What good would that do?

On the contrary, it would be upholding the US Constitution.

Interpreting the Constitution is the job of the judicial branch, not us message board posters.