Replies to post #822632 on Fannie Mae-No Politics (FNMA)

[Rodney5]

Good morning bcde,

Quote: “PSPA is authorized by HERA. No further Congressional approval is required as long as it is in compliance with HERA.” End of Quote

That’s the thing the preferred stock purchase agreement is not in compliance with HERA…

Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee on a line of credit to be paid by the Enterprise.

The Charter Act, and the Federal Housing Enterprises Financial Safety and Soundness act of 1992 (FHEFSSA); Both as amended by the HOUSING AND ECONOMIC RECOVERY ACT OF 2008, (HERA).

AGAIN:

THIS IS WHAT ACTUALLY HAPPENED.

The difference in what the Treasury had authority to do and what actually happened during conservatorship as it relates to Treasury's actions, simplified. The GSE’s had a limited explicit obligation from Treasury in the amount of $2.25 billion. With the passing of HERA this explicit obligation was increased above the limit of $2.25 billion to $200 billion to purchase obligations of the company (MBS Obligations) up to the point in time expired December 31, 2009. Page 18 charter act.

STRESSING: PURCHASE OBLIGATIONS, MBS OBLIGATIONS of the enterprises.

HOUSING AND ECONOMIC RECOVERY ACT OF 2008, (HERA), gave to the Treasury this purchasing power; OBLIGATIONS, MBS OBLIGATIONS (nothing more nothing less)... Rather than purchasing obligations of the companies the Treasury decided to create a new product called the Senior Preferred Stock with an illegal commitment fee attached. Neither the Charter Act nor HERA authorize a commitment fee to be charged by the United States Treasury.

Where is "maximize profits for taxpayers" written in the Charter Act? Specifically, in this provision entitled Fee Limitation of the United States: ?

This leads to the question, who authorized the appropriation of taxpayer debt to provide the 200 billion commitment? Certainly not Congress. Treasury took it upon themselves and authorized a 200 billion commitment available in exchange for One Million Shares (1,000,000) with an initial liquidation preference of $1,000 per share. Shares of senior equity illegal and unconstitutional. Page 5 of the Senior Preferred Stock Purchase Agreement.