Replies to post #758828 on Fannie Mae-No Politics (FNMA)

[Rodney5]

you ask can the Treasury continue to do so?

No, not according to Congress: What’s crazy the law is being ignored.

PUBLIC LAW

The Charter Act

The United States prohibition on assessment or collection of fee or charge to Fannie Mae, (section 304 Fee Limitation). Only Federal Reserve Banks are authorized to be reimbursed of fees, (section 309).

Therefore, the FHFA was not given authority by Congress to enter into contract with the United States Treasury in the amount of $200,000,000,000 (two hundred billion dollars): This amount of money is construed as a commitment from the Treasury, a line of credit, backstop. This money was not used to purchase obligations of Fannie Mae as permitted in the HERA legislation under terms as defined by the changes of the company's Charter Act by HERA. The HERA legislation granted temporary authority to the Treasury to purchase obligations of the Enterprise, above the limits written in the Charter, (Charter limitation of 2.25 billion). The SPSPA is an illegal contract that the FHFA forced the companies into with the Treasury.

[Robert from yahoo bd]

The UST and FHFA's major #1 issue is that they don't have to 'bailout' the GSE'S ever again.

I believe HERA mandates a 2.5% minimum Capital Ratio and MC and SLT have elevated it to 4% or more.

But for the Net Worth Sweep, we likely could have been released already. The courts have treated us with adverse rulings so far and may or may not result in more Capital in a 1st Loss Position to the Corporations in the future.

Since GSE MBS is so integral to the integrity of the US financial system and the Capital of the Corporations was reduced to near zero from 2013-2019, we will likely have to wait for the Capital in a 1st Loss Position to build up to 2.5% or more before the current administration begins to think about release.