Replies to post #795755 on Fannie Mae-No Politics (FNMA)

[Barron4664]

Clarence,

Section 304 of the FNMA charter act is found on pg 13-18 of the below link:

https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/aboutus/pdf/fm-amended-charter.pdf

It is pretty simple. The only way to not understand the plain language of the law here is to read into the words something that is not written. Like wiseman does when he erroneously states a product must be an activity. The law only says new products issued under Section 304 of the FNMA Charter Act. The SPS are a new novel security product issued for the purposes of section 304. The SPSPA itself states that the SPS are authorized by section 304. It is such a novel product that nobody can agree what the SPS actually are. Are they a loan? Obligation? Equity? Ive read arguments for all here. The only thing they are in my opinion is illegal.