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Date:
11/16/2018
Name:
Dhi V
State:
California
Rule Number:
Federal Register Citation:
83 FR 33312
CFR:
12 CFR Parts 1206, 1240, and 1750

Comment

We're a family of 4 - not a hedge fund or any big bank. I'm just an ordinary woman, who was benefited by Fannie Mae for the loan I took for my first home. I want such reach - to buy a home - facilitated by the GSEs to be there for my kids too, when they are ready for buying their fist home. 

I really appreciate everything the government did and do for the middle-class to afford a house. 
Obviously, that made me believe in these companies. I did not look at their balance-sheets to believe in them - I just know how good they are for me. In hopes to preserve that, I invested in them - bought the common shares too. 

I believed in them so strong, I put a lot of my retirement savings in them. Seeing that they are profitable, I believed I'm not throwing my retirement money in a bankrupt company. But, my belief is being shaken by recent event and I stand to loose much of my retirement savings. That aside, it's not fair that the current investor are cheated on for new money. There is no need for it - these are not bankrupt companies like what the big banks want everyone to believe. 

I agree with Pershing Square’s comments that “..for such an unprecedented capital raise to be feasible, we believe that current investors in Fannie and Freddie must be treated fairly, as new investors will be highly skeptical as to how they will be treated if the ultimate outcome is poor for legacy shareholders of the GSEs.
In order for the Enterprises to successfully raise the new private capital contemplated by the Proposed Rule, we believe that legacy investors in Fannie and Freddie must be treated fairly. No new investor will invest in Fannie and Freddie unless historic investors are protected from, and compensated for, the expropriation of profits from the two companies that took place with the Net Worth Sweep that has extracted more than $237 billion of profits from the Enterprises since it took effect on January 1, 2013.(1) This amount represents a return to Treasury greater than the bargained for 10% interest rate on its Senior Preferred Stock investment, including complete repayment of the $191 billion invested by Treasury in the Enterprises." 

Please do the right thing to honor the investors and not stab them in the back - again, I'm not a hedge fund or big bank. It's easy to separate the ordinary investors and families to treat them justly.

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