Replies to post #756516 on Fannie Mae-No Politics (FNMA)

[kthomp19]

If the Treasury’s LP continues to grow the regulator is authorized or required to place the companies into receivership under specified conditions, which would result in our liquidation.

No. Mandatory receivership only happens if FnF's liabilities exceed their assets for 60 straight days by 12 USC 4617(a)(4)(A)(i):

(4) Mandatory receivership
(A) In generalThe Director shall appoint the Agency as receiver for a regulated entity if the Director determines, in writing, that—
(i) the assets of the regulated entity are, and during the preceding 60 calendar days have been, less than the obligations of the regulated entity to its creditors and others; or
(ii) the regulated entity is not, and during the preceding 60 calendar days has not been, generally paying the debts of the regulated entity (other than debts that are the subject of a bona fide dispute) as such debts become due.

The entire purpose of the funding commitment in the original SPSPAs was to keep FnF from triggering mandatory receivership. That's why FnF only drew enough money each quarter in 2008-2012 to bring their net worth up to zero.

Money received goes into the dark hole of the Treasury! Which pays off the LP by confiscation of our companies.

1) FnF have not sent a penny to Treasury since June 30 2019.
2) Previous money sent to Treasury did not reduce the liquidation preference of the senior preferred shares.
3) Any confiscation of the companies happened in 2008, not 2012. The NWS just made it much harder for FnF to be released later. The 2019 and 2021 letter agreements have allowed FnF to retain capital, which is diametrically opposite to the purpose of the NWS (which was to prevent FnF from retaining capital and eventually escaping conservatorship).

In my opinion Barron has the best approach, The Charter Act! Challenging the illegal contract SPSPA. It was also stated on this board, “somebody better hurry up and file before we run out of time!”

If he wants to waste his time and money that's up to him.