Rodney5
1 hour ago
After reading the last post it hits home hard to understand the FHFA gave away the company. GAVE IT AWAY!
The SCOTUS said it best...
JUSTICE BREYER Quote: “Thank you. I think in reading this you could, with trying to simplify as much as possible, do you -- the shareholders' claim as saying we bought into this corporation, it was supposed to be private as well as having a public side, and then the government nationalized it. That's what they did. If you look at their giving the net worth to Treasury, it's nationalizing the company. Now, whatever conservators do and receivers do, they don't nationalize companies. And when they nationalized this company, naturally they paid us nothing and our shares became worthless. And so what do you say?”
Rodney5
1 hour ago
jog49, the Treasury did not pay any amount of money. The company recorded the Senior Preferred Stock was issued for free. The company gave the Treasury one million shares of Senior Preferred Shares for $1,000 per share or $1 billion dollars. In addition, gave to the Treasury 79.9% of warrants.
Quote: “We did not receive any cash proceeds from Treasury at the time the senior preferred stock or the warrant was issued.” End of Quote
page 25 Form 10K December 31, 2008
link: https://www.sec.gov/Archives/edgar/data/310522/000095013309000487/w72716e10vk.htm#304;
Senior preferred 1,000
Page 143
Link: https://www.sec.gov/Archives/edgar/data/310522/000095013309000487/w72716e10vk.htm#127;
On September 7, 2008, we, through FHFA, in its capacity as conservator, and Treasury entered into a senior preferred stock purchase agreement, which was subsequently amended and restated on September 26, 2008. We refer to this agreement as the “senior preferred stock purchase agreement.” Pursuant to the agreement, we agreed to issue to Treasury (1) one million shares of Variable Liquidation Preference Senior Preferred Stock, Series 2008-2, which we refer to as the “senior preferred stock,” with an initial liquidation preference equal to $1,000 per share (for an aggregate liquidation preference of $1.0 billion), and (2) a warrant to purchase, for a nominal price, shares of common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis at the time the warrant is exercised, which we refer to as the “warrant.” The terms of the senior preferred stock and warrant are summarized in separate sections below. We did not receive any cash proceeds from Treasury at the time the senior preferred stock or the warrant was issued.
jog49
4 hours ago
"Quote: “Fannie Mae and Freddie Mac have been in federal conservatorship since September 2008. CBO treats the two GSEs as government entities in its budget estimates because, under the terms of the conservatorships, the federal government retains operational control and effective ownership of Fannie Mae and Freddie Mac."
I might be dumber than a box of rocks but my reading comprehension is quite good. For all intents and purposes, the government is driving this bus and they only paid, what was it, $74,000, for it?
navycmdr
5 hours ago
Republican senators introduce bill to expand federal oversight
of housing programs The bill was introduced by key members of the Senate
Banking Committee, including Tim Scott, Katie Britt and Mike Crapo
September 18, 2024, 4:17 pm - By Chris Clow
Republican senators introduce bill to expand federal oversight of housing programs https://t.co/Qd7dDD5yUH— Cmdr Ron Luhmann (@usnavycmdr) September 19, 2024
Republican members of the U.S. Senate have introduced new legislation designed to expand
the oversight of federal housing programs, make changes to loan officer compensation for the
origination of small-dollar mortgages, and create additional counseling requirements
for homebuyers.
The Renewing Opportunity in the American Dream (ROAD) to Housing Act is spearheaded by
key Republican members of the Senate Banking Committee. These include ranking member
Tim Scott (S.C.), as well as Mike Crapo (Idaho), Mike Rounds (S.D.), Bill Hagerty (Tenn.),
Cynthia Lummis (Wyo.), Katie Britt (Ala.), Kevin Cramer (N.D.) and Steve Daines (Mont.).
“This legislation is the result of negotiations with stakeholders and follows feedback on [Scott]’s
legislative framework, discussion draft, and multiple full committee hearings on legislative
solutions to challenges in housing,” Scott’s office said in an announcement of the bill.
Scott’s office also said that the bill aims to provide a “comprehensive” view of federal housing
policy by introducing “long-needed” reforms and deemphasizing down payment assistance
that has been a rallying cry for Democrats. Instead, the goal is to focus on congressional
oversight and changes to LO compensation.
Sen. Tim Scott
“Families deserve reliable access to a responsibly regulated housing market,” Scott’s office said.
“Our federal housing programs require greater oversight from Congress to ensure that they
are operating in a safe and sound manner. The ROAD to Housing Act aims to ensure the
households who utilize federal housing programs have greater access to tools which
enhance financial literacy and improve economic opportunity.”
The bill also contends that housing assistance programs from the U.S. Department of
Housing and Urban Development (HUD) do not provide localized assistance. These
programs — particularly in relation to federally subsidized properties — “have historically
concentrated poverty and limited the economic mobility of residents,”
the announcement stated.
“Homeless assistance programs have similarly failed to deliver the results we need, with
the total number of homeless individuals at the highest levels ever recorded.”
Republican senators also contend that assistance is prevented from reaching those who
need it due to bureaucratic processes tied to federal assistance programs. They argue
that “assisted housing programs lack robust oversight,” partially due to lawmakers’
“limited visibility to measure whether they truly assist the low-income families they are
intended to support.”
The bill would review regulatory burdens on costs and “delays in the supply of affordable
housing,” while also “rethink[ing] how agencies collect and analyze data to help policymakers
better understand if programs are working.” It would also expand congressional oversight
of HUD’s management of the Mutual Mortgage Insurance (MMI) Fund.
Additional congressional oversight of HUD could stem from consistent Republican critiques
that agency leaders — most recently former HUD Secretary Marcia Fudge — have not
appeared before Congress to update the legislative branch on HUD’s progress in
meeting its goals.
In one of her final official appearances before Congress this past January, Fudge was
castigated by Rep. Patrick McHenry (R-N.C.), the chairman of the House Financial
Services Committee, for her lack of appearances before Congress.
In a message to its members this week, the Mortgage Bankers Association (MBA) said
it is engaged with Scott’s office on the bill, and any path forward will be determined by
the partisan makeup of the Senate in 2025.
“The bill, long in the works, is intended to be a marker for Sen. Scott’s initial engagement
on housing policy should Republicans win a Senate majority in November – and should
he, as expected, become the Chair of the Senate Banking Committee,” the MBA stated.
“Given that the bill has been introduced with no Democratic co-sponsors, any legislation
considered in the 119th Congress on housing policy would involve negotiations,
changes, and additional policy provisions.
The bill marks a relatively substantive contribution by Republicans to the topic of housing
during the 2024 election cycle. While the presidential campaigns of both President
Joe Biden and Vice President Kamala Harris have made housing issues a key priority for
the Democratic platform, Republican nominee Donald Trump has tended to tie housing
to the larger issue of immigration when electing to comment on housing at all.
Democratic lawmakers have also been active this week with respect to housing legislation.
Rep. Alexandria Ocasio-Cortez (N.Y.) and Sen. Tina Smith (Minn.) on Wednesday
introduced their own bill that has a stated goal of building and preserving affordable
housing, including through a repeal of the Faircloth Amendment.
They also seek to create a new national housing development authority to provide
an “alternative to a market dominated by corporations and investors with deep pockets,”
according to a description of the bill provided to Housing Wire. Like Scott’s bill, however,
it lacks bipartisan support, according to initially-released details.
TightCoil
14 hours ago
5 day Recap - FNMA
Sep 12 Close 1.10 - on 3,188,500
Sep 13 Close 1.17 - on 5,063,800
Sep 16 Close 1.23 - on 2,958,300
Sep 17 Close 1.24 - on 3,222,900
Sep 18 Close 1.28 - on 3,950,800
Rodney5
21 hours ago
To anyone new to this discussion.
The Senior Preferred Stock Purchase Agreement is a contract between two government agencies which Fannie and Freddie had no say so. The only legal contract is the one with the U.S. Congress, called the Charter Act. The Senior Preferred Stocks are illegal because the Stocks have an illegal commitment fee attached to it.
The Federal statutes are the Charter Act, the Safety and Soundness Act of 1992, as amended by HERA, Administrative Procedures Act, and potentially the Chief Financial Officers Act.
None of the current litigation makes any claims of violation of these acts. They all challenge the actions of the Conservator and attempted to squeeze the APA and the 5th amendment takings into the Actions of the FHFA-C within the terms of the SPSPA. all have failed to this point.
SPSPA which is a contract. 4617f bars courts from questioning the actions of a conservator. The stockholders’ statutory claims are barred by the Recovery Act’s strict limitation on judicial review. See 12 U.S.C. § 4617(f).
The Plaintiffs have to prove the FHFA / Treasury broke the law. No mention of Federal Statute.
Rodney5
21 hours ago
You ask why? First off the shareholders who hired these Lawyers should demand their money back!
All the lawsuits challenged the actions of the Conservator within the terms of the SPSPA... AND The Supreme Court basically said we will not rule or give Judgment are act as an arbitrator on the contract the SPSPA. So, the NWS was not validated as legal or illegal by the Court: The Court dismissed the lawsuit.
SPSPA which is a contract. 4617f bars courts from questioning the actions of a conservator.
THE PLAINTIFFS BROUGHT THE WRONG LAWSUIT.
We hold that the stockholders’ statutory claims are barred by the Recovery Act’s strict limitation on judicial review. See 12 U.S.C. § 4617(f).
Millett and Ginsburg summarized the case and their 70-page opinion as follows:
Quote: “A number of Fannie Mae and Freddie Mac stockholders filed suit alleging that FHFA’s and Treasury’s alteration of the dividend formula through the Third Amendment exceeded their statutory authority under the Recovery Act, and constituted arbitrary and capricious agency action in violation of the Administrative Procedure Act, 5 U.S.C. § 706(2)(A). They also claimed that FHFA, Treasury, and the Companies committed various common-law torts and breaches of contract by restructuring the dividend formula.
We hold that the stockholders’ statutory claims are barred by the Recovery Act’s strict limitation on judicial review. See 12 U.S.C. § 4617(f). We also reject most of the stockholders’ common-law claims. Insofar as we have subject matter jurisdiction over the stockholders’ common-law claims against Treasury, and Congress has waived the agency’s immunity from suit, those claims, too, are barred by the Recovery Act’s limitation on judicial review. Id. As for the claims against FHFA and the Companies, some are barred because FHFA succeeded to all rights, powers, and privileges of the stockholders under the Recovery Act, id. § 4617(b)(2)(A); others fail to state a claim upon which relief can be granted. The remaining claims, which are contract-based claims regarding liquidation preferences and dividend rights, are remanded to the district court for further proceedings.“ End of Quote
Link: https://www.washingtonpost.com/news/volokh-conspiracy/wp/2017/02/21/d-c-circuit-concludes-recovery-act-bars-judicial-review-of-suits-against-fhfa-over-treatment-of-fannie-and-freddie-shareholders/