Replies to post #782285 on Fannie Mae-No Politics (FNMA)

[kthomp19]

My recollection of the settlements is that the FHFA didn't distribute the funds to the GSE's.

The money went straight to the companies. They recorded it as income.

If it was ever listed as income wouldn't that have been counted anywhere toward capital retention buffers?

By the time the settlements happened (2013-2018) the NWS was in place. That means the money went to the companies, and then the next quarter got swept to Treasury.

For an example, see page 75 of Fannie Mae's 2013 10-K form:

Fee and Other Income
Fee and other income includes transaction fees, technology fees, multifamily fees and other miscellaneous income. Fee and
other income increased in 2013 compared with 2012 primarily as a result of funds we received in 2013 pursuant to settlement
agreements resolving certain lawsuits relating to private-label mortgage-related securities sold to us. See “Legal Proceedings
—FHFA Private-Label Mortgage-Related Securities Litigation” for additional information. In addition, we recognized higher
yield maintenance fees in 2013 related to large multifamily loan prepayments during the year.

Here is a link to Fannie Mae's 10-Q and 10-K filings; you can check other years for yourself. And here is a link to Freddie Mac's webpage for their filings.