There’s little love lost between a group Fannie Mae and Freddie Mac shareholders and the U.S. Treasury’s Michael Stegman.

Stegman spoke at the Goldman Sachs (GS) Housing Finance Conference yesterday, and it wasn’t long before Investors Unite, an association of GSE stock investors, answered, saying he is, once again, wrong. 

Stegman, a housing policy counselor, reportedly said that “recapitalization of the GSEs and draws against the existing Treasury backstop due to future losses would come at taxpayer expense.” He also said that “simply returning these entities to the way they were before is not practical nor is it a realistic consideration.”  Stegman also delivered his now-familiar refrain that it was up to Congress to decide what to do with the companies, and that the government was “looking for new ways” for private investors to play a larger role in housing finance. 

We’re encouraged that Mr. Stegman is finally being forced to address critical issues related to the undercapitalization of the GSEs, and how the government’s illegal Third Amendment Sweep is actually exacerbating this problem by taking all of Fannie and Freddie’s profits.  But as it has been in the past, his analysis is wrong, and in conflict with HERA, which is the statute that actually governs the conservatorship. 

 Read the whole thing here.