here are the three pictures that tell the story :
THE way the market actually was in OCT 2012. after the sweep was put in place. This is taken from today's perspective 2014.
As you can see at the end of 2011 and the biggining of 2012, the Home price index shot up at a 45deg angle. By August of 2012 when sweep was put in place the govt looked at this chart and KNEW the bottom was in. This is the TRUE baseline.
But the govt in Oct 2012 FHFA reported this AFTER the sweep.
You can see the FHFA in OCT moved the baseline of Case-Shiller to fit its baseline in this document OCT 2012. Three months after the 3rd amendment. This was a coverup. A lie!!
In 2010 the FHFA Filed this and the projections look a little different. These are before the sweep.
As you can see as early as 2010 the FHFA believed in all cases by the 3rd quarter of 2012, or the sweep, that the market would be going back up. I think it should be noted that the Oct 2012 says the same. Even though the 2012 has the baseline moved to fit the narrative of the FHFA for the sweep. The thing they forget to Fix is IN ALL PROJECTIONS they see the 3rd quarter of 2012 as being the turning point in all scenarios that the FHFA labels as possible both in 2010 and in oct 2012. It would be impossible for the FHFA would not recognize that if the 3rd quarter of 2012 was the turning point in the housing index that it was also the turning point for Fannie and Freddie to profitability. This is a smoking gun. The FHFA knew the relationship between the housing index and the profitability of F&F. The FHFA knew this before the FHFA and the Treasury entered the sweep in August 2012. The FHFA's own projections show this.