Replies to post #769778 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

How is the fact that FnF is not allowed to distribute dividends and other payments (e.g., Lamberth litigation claims) due to undercapitalization consistent with Sandra paying $1.1 billion in disguised social welfare programs ("reducing the racial ownership gap") out of FnF coffers? These social welfare programs are government tasks that Congress has to vote on. It's simply illegal for social welfare programs to be paid out of FnF's equity - bypassing Congress. Or can Sandra do it anyway because "the Director determines [if it] is in the interest of Conservatorship"? LOL

And I'm not Bradford, as Guido correctly pointed out.

A dividend is a distribution of Earnings, ... and then, they request a compensation for damages defrayed by FnF, which was considered a capital distribution by the FHFA in a Final Rule of July 20, 2011... making clear in the preface of the rule that it's forbidden in the FHEFSSA's Restriction on Capital Distributions (here), although in the rule it made up a version of it CFR 1237.13 to add "except to the extent the Director determines is in the interest of Conservatorship". Yeah, right. If it's restricted upon undercapitalized, it's restricted.