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  • Comment Detail

  • Date: 11/09/18
    First Name: Matt
    Last Name: Wildy
    Organization: N/A
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AA95

  • Comment

    1.) Foundationally speaking--first reference the accounting documents used [as the reason] to place F&F into conservatorship & ultimately sweep 100% of their profits. It’s clear that the GSE’s accounting/financials were manipulated. Also take-a-peek at the discovery documents in Judge Sweeny’s court. It’s evident that the full sweep had nothing to do with “conserving” the GSE’s to “safe and solvent”. Even Paulson recently admitted they were “nationalized”. That is a far cry from “conserved”.

    2.) Release F&F from conservatorship. They will never be “safe and solvent” if treasury keeps taking 100% of the profits. F&F paid back the original 10% interest that they agreed to.

    3.) Relist both F&F on NYSE.

    4.) Keep the gov’t line of credit active until they reach 2% capital reserve achieved with their own earnings. Then drop the government (“tax-payer”) guarantee.

    5.) SPS is expired.

    6.) Drop the 79.9% treasury warrants. The purpose for their existence was for collateral purposes, in the event 10% interest could not be paid back.

    7.) At release from conservatorship—treasury should announce that once 2% capital reserve is maintained for one fiscal quarter, preferred and common dividends will be resume. This will make 99% of current and future lawsuits a waste of time.

    8.) After all the above--Very slowly [very with emphasis] lower loan limits and/or very slowly increase g-fees to promote mortgage lenders and borrowers to use alternative solutions, banks, etc.

    Who wins:

    • Homebuyers and housing—a significant and important part of our economy, that produces 20% of our GDP. That’s the point of the whole thing anyway.
    • Mnuchin—for promoting administrative action that is best for our housing health/economy (with no strings attached). Not for hedge fund benefit. Not for political financial gain. Most especially, not for paid-interest-groups looking to profit…at the cost of housing affordability/liquidity.
    • The shareholders get full market cap value, as they should.
    • The taxpayers—who (most of them unknowingly) gained massive profits from the GSE sweep.
    • Treasury and FHFA – all lawsuits disappear.
    • Treasury—significant taxable IRS capital gains from shareholders.

    Who loses:

    • Shareholders—who lost 10 years’ worth of dividends
    • Wells Fargo
    • Bob Corker