Replies to post #777402 on Fannie Mae-No Politics (FNMA)

[DaJester]

"Let's take your position that it isn't illegal for Treasury to write off the SPS. Okay, then why haven't they done it already? "

Treasury has had no vested interest in releasing the twins. They had a cash cow and no legal repercussions. IF they do a write down (I'm not saying it's guaranteed action), it will likely have to do with politics and the optics of the situation based on whichever Administration is in place. On top of the billions overpaid, it's hard to justify the amount of time and additional money siphoned to the Treasury. The LP could reach half a trillion by the time they are released. That may very well feel like a taking, and there is already evidence of good faith breach. Makes it easier to highlight and fight as gross government overreach.

"why did Treasury amend the SPS to increase the LP in lockstep with net worth?"
This started before the jury verdict obviously. When it was 10%, any dividend not paid would go to increase the LP. Then it switched to NWS so the "not paid" part of the contract was moot. But then when FnF were allowed to retain earnings, the entire income amount that would have been paid in cash now falls into the dividends "not paid" category, so it gets added to the LP. Essentially the NWS is still there, just as an IOU.

[Donotunderstand]

Treasury - IMO - has not done it yet as it has not had a framework from POTUS ---- and generally things from their view were going along well while mortgage rates were 3-5 or whatever percent

NOW - with higher mortgage rates ----- GOV (POTUS - POLITICS) might want Treasury to bundle a GREAT NEWS announcement on how F and F will now .................. be able to walk on water ..t...................... because of X Y and Z Biden actions - to include calling the SP and LP paid off with 300 on the 200 (and thus reducing cost - right or dishonest) and WTS for 4B to raise 100B to propose to Congress to be used to increase supply of houses and reduce prices ---- AND to broaden the ownership of F and F to all Americans

Maybe much of the above has been there for a while --- but we are now approaching an election - and maybe with the right message - their are big time POTUS election level reasons -- for the above laid out NEW BLAST and set of actions (and then call on the R house to come up with legislation to finish this great initiative to a public utility).

So the answer - why now -- POTUS and HOUSE politics set it up IMO

[Louie_Louie]

IN CONSERVATORSHIP who is the government working for? It's really that simple! They say the taxpayer lmao, we know it's for governments benefit. So where does that leave JPS and commons? Nowhere special. They are recapping the GSE's dysfunctionally through 15 years now! You do not see this?