Replies to post #793199 on Fannie Mae-No Politics (FNMA)

[kthomp19]

The Conservator is supposed to have a duty to "Conserve and Preserve."

Supposedly yes.

Let's forget the history we all know here and assume this to be true.

No. It is unfortunately false. Page 2 of the Supreme Court's Collins opinion said:

So when the FHFA acts as a con-
servator, it may aim to rehabilitate the regulated entity in a way that,
while not in the best interests of the regulated entity, is beneficial to
the Agency and, by extension, the public it serves. This feature of an
FHFA conservatorship is fatal to the shareholders’ statutory claim.

The fact is that the Supreme Court ruled that HERA allows FHFA to act in its own best interests, even when that runs counter to the conserve and preserve mandate.

How is it they can give away billion$ to low income housing when their stated duty is to conserve and preserve. I would expect they should not be allowed, legally, to give ANY of that money away. Other than being the government that nationalized the GSEs, how do they get away with this?

The first step to wisdom here is to accept what the Supreme Court has actually ruled, and reject what you think "should" be the case.