Replies to post #775065 on Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

You asked “how is it legal to do a distribution by companies in conservatorship?”

Kthomp has explained this before. And I think this explanation is correct.

Although HERA restricts distribution of capital during conservatorship, that restriction is dependent on capital classifications. But shortly after the conservatorship was announced, the Director suspended capital classifications. And the suspension remains in place.

https://www.fhfa.gov/SupervisionRegulation/FannieMaeandFreddieMac/Pages/Capital-Requirements.aspx