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Jacquelyn from Yahoo Conversation
Biden Administration - Release Fannie Mae and Freddie Mac from government conservatorship
https://www.change.org/p/president-biden-administration-biden-administration-release-fannie-mae-and-freddie-mac-from-government-conservatorship
Jacquelyn on Yahoo Conversation
Biden Administration - Release Fannie Mae and Freddie Mac from government conservatorship
https://www.change.org/p/president-biden-administration-biden-administration-release-fannie-mae-and-freddie-mac-from-government-conservatorship
Japanese
GSE reform, CFPB underwriting rule are on collision course
https://www.americanbanker.com/news/gse-reform-cfpb-underwriting-rule-are-on-collision-course
FHFA head offers olive branch to Congress on privatizing Fannie Mae, Freddie Mac
MarketWatch
Andrea Riquier
,MarketWatch•January 30, 2019
In a letter obtained by MarketWatch, the acting director of the Federal Housing Finance Agency on Wednesday wrote to senior Democrats on the Senate Banking Committee, offering to work together on efforts to release Fannie Mae and Freddie Mac from government conservatorship. Joseph Otting told House Financial Services Committee Chairwoman Maxine Waters and ranking Senate Banking Committee member Sherrod Brown that he "would welcome your insight and perspective" as overhaul efforts begin. That step follows reporting by MarketWatch that showed Otting intended to work directly with the Treasury Department to release the two mortgage companies, with no participation from Congress. The White House also has said they will work with Capitol Hill to take the mortgage giants out of conservatorship.
https://www.nasdaq.com/symbol/fnma
Fannie Mae (FNMA) After Hours Trading
FNMA $2.41* unch
CAPITAL RESEARCH & MANAGEMENT CO...12/31/2018 Bought 14.8 Million shares of Federal National Mortgage Asso.
markets.money.cnn.com/research/quote/shareholders.asp?symb=FNM...institutional
(printed in the "Top 10 Mutual Funds Holding FNMA" table in the below link)
Pershing square holdings ltd 44.7 M shares
http://money.cnn.com/quote/shareholders/shareholders.html?symb=FNMA&subView=institutional
Capital Research Management Co bought 8.5 M shares on 9/30/2018.
http://money.cnn.com/quote/shareholders/shareholders.html?symb=FNMA&subView=institutional.
Pasting : it's from stocktwits.
Proposal for recapitalization of Fannie Mae / Freddie Mac
Date: 6/23/2018
Author: Cristi on stocktwits
Here is a plan I would submit for recapitalization of Fannie (FNMA) and Freddie (FMCC) and for exiting Conservatorship. The plan’s main goal is to ensure financial stability for the two companies and minimal disruption to the financial system.
The proposal involves issuing new common and preferred stock. The existing common and preferred shares will be extinguished. The existing common shareholders will be able to recover some of their losses, but the amount will be limited to $3/common share and $4/preferred share.
In the terms below, “company” refers to either Fannie Mae or Freddie Mac.
The company will issue 2Bn common shares to the Treasury in exchange for its warrants and senior preferred shares.
The company will issue and sell 3.5Bn common shares at $20 each. These existing common shareholders will be given priority to buy up 3 new common shares at discounted price of $19. Any shares not purchased by the existing common shareholders will be sold through an IPO at $20.
The company will issue and sell 1.2Bn preferred shares at $25 each. The existing preferred shareholders will be given priority to buy up to 2 new preferred shares at discounted price of $23. Any shares not purchased by the existing preferred shareholders will be sold through an IPO at $25.
Any common and preferred shareholders surrender their right to sue if they choose to exchange their shares for the new shares.
After this recapitalization, the company will have equity of about $100Bn
Common equity of $70Bn ($66.5Bn if all common shareholders exercise their right to buy 3 shares)
$30Bn preferred equity ($27.6Bn if all preferred shareholders exercise their right to buy 2 preferred shares)
There will be 5.5Bn common shares and 1.2Bn preferred shares. The preferred shares will pay about $2Bn/year in preferred dividends.
The current annual net income is $16-$20Bn range. That gives a net income to common shareholders of $14-18Bn.
Let’s assume the net income is only $14Bn/year. That gives an EPS = $2.54 and P/E=7.87. This means there is good reason to assume the common shares will rise to $25 within a year.
The companies will exit Conservatorship and will be allowed to retain the earnings, build capital and, eventually, pay common dividends.
Due to the importance of these companies, they will continue to have some form of support and will have the following limitations:
If the common + preferred equity falls below $50Bn, the Treasury will step in and provide funds to bring the equity back to $50Bn. Any funds provided by the Treasury will need to be paid in a double amount. (If equity falls to $40Bn, Treasury provides $10Bn and Company needs to pay back $20Bn).
If the common + preferred equity falls below $75Bn, the Company cannot repurchase shares or pay any dividends
The company top executives will have clawback clauses allowing all bonuses from last 5 years to be returned if common + preferred equity falls below 75Bn
Cristi
I'm a value investor who buys and holds for years. I think everything is too expensive right now, so I bought a lot of preferred REITs. Portfolio at 11/23/2017: AGNCB(58%) ARR-B(28%) MORL(5%) BAC(3%) AGNC (2%) BRK.B(2%), TRTN (1%)
Katy O'Donnell,Reporter at Politico
?
@KatyODonnell_
FHFA will propose a new risk-based capital rule for Fannie and Freddie "in the very near future," Watt says
Fannie Mae is the world's fifth-largest financial services company by revenue ($131.9 B). wikipedia.org https://en.wikipedia.org/wiki/List_of_largest_financial_services_companies_by_revenue.
Reading Market-Maker Signals???
See the signs and messages they send each other
Many traders believe that market makers will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are from one market maker to another.
100 I need shares.
200 I need shares badly, but do not take the stock down.
300 Take (or I am taking) the price down so I can load shares
400 Keep trading it sideways.
500 Gap the stock.
http://markets.money.cnn.com/research/quote/shareholders.asp?symb=FNM&subView=institutional
3/31/2018 CAPITAL RESEARCH & MANAGEMENT CO... added 3.2 Million shares. Total 70,296,000 (70 M)
Sorry! Mistake!
Just released. Google the title.
http://www.cbn.com/tv/1395699342001?mobile=false
CBN TV - House GOP Plans Phase Out of Fannie, Freddie
Video for House GOP Plans Phase Out Of Fannie, Freddie House GOP Plans Phase Out of Fannie, Freddie?
www.cbn.com/tv/1395699342001
Keywords. republicans u.s. house fannie mae freddie mac gop lawmakers obama administration companies ...
Trump: Kudlow has 'good chance' to become top economic adviser
BY VICKI NEEDHAM - 03/13/18 10:45 AM EDT President Trump on Tuesday said Larry Kudlow has a good chance of taking the helm of the White House's National Economic Council.
Trump told reporters ahead of a trip to California that he is taking a hard look at Kudlow to replace former top economic adviser Gary Cohn.
"I'm looking at Larry Kudlow very strongly," he told reporters on the South Lawn.
"I’ve known him a long time. We don't agree on everything," he said.
"But in this case, I think that’s good."
Trump, who argued he wants differing opinions in the White House, said Kudlow has "come around to believing in tariffs as also a negotiating point."
“I’m renegotiating great deals. Without tariffs, we wouldn't do nearly as well.”
Last week, Trump said he will impose sweeping tariffs of 25 percent on imports of steel and 10 percent on aluminum, citing national security concerns.
Kudlow, a former CNBC host who was an informal economic adviser to Trump's campaign, showed some signs that he has shifted away from his free-trade stance and his opposition to tariffs.
Over the weekend, Kudlow called China a "key problem" for the United States and said that he's "not opposed to targeted tariffs" against the superpower.
"It’s a Trumpian way of negotiating," Kudlow said. "You knock them in the teeth and get their attention. And then you kind of work out a deal and I think that's what he’s done. My hat's off to him. He had me really worried. Now I’m not."
The decision to slap tariffs on key U.S. allies — so far, Canada, Mexico and Australia have exemptions — was enough for Cohn to finally hand in his resignation after months of speculation that the former Goldman Sachs executive would leave the White House.
Most Republicans on Capitol Hill blasted the decision as a policy that could undermine the recently implemented tax package, kill jobs and damage the otherwise red-hot U.S. economy.
Many in the GOP called on the Trump administration to target the tariffs to areas where there are known problems, especially in the overcapacity of steel coming out of China.
Trump has tied the completion of the North American Free Trade Agreement (NAFTA) renegotiation to whether exemptions are maintained for Canada and Mexico.
The president and U.S. Trade Representative Robert Lighthizer suggested that the tariffs could be used as leverage to accelerate the completion of the NAFTA deal or the United States might withdraw from the agreement completely.
Canada and Mexico have said they want to update the 24-year-old NAFTA deal and won’t be swayed by threats of tariffs against their steel and aluminum industries that are heavily integrated into the North American economies to agree to a bad deal.
But in a March 3 op-ed in National Review, Kudlow made the argument that tariffs are taxes that risk millions of U.S. jobs.
“Steel and aluminum may win in the short term, but steel-and-aluminum users and consumers lose,” he wrote with two others.
“Tariffs are really tax hikes. Since so many of the things American consumers buy today are made of steel or aluminum, a 25 percent tariff on these commodities may get passed on to consumers at the cash register. This is a regressive tax on low-income families," Kudlow wrote.
In the end, the tariffs would lead to job losses and widen the trade gap, not close it.
"Meanwhile, up to 5 million jobs will be put in harm’s way. And if U.S. steel-and-aluminum-using industries sell less to foreigners, the trade deficit goes up, not down," Kudlow wrote.
But with Kudlow's new apparent agreement with Trump's plans to use tariffs to negotiate trade deals, the president now seems determined to keep Kudlow in the mix for a White House job.
“Larry has been a friend of mine for a long time,” Trump said on Tuesday.
“He backed me very early in the campaign, I think the earliest,” he said.
“I think he was one of my original backers. He's a very, very talented man, a good man. I think Larry Kudlow has a good chance. I'm also speaking to many others but I think Larry has a very good chance."
Pecker9wood
Reminder: to + verb (infinitive verb), too is an adverb.
Examples : to run, to read ,to follow.
Too is used in the following ways: as an ordinary adverb (before an adjective or adverb or before 'much', 'many', 'few' etc): You're too young to understand politics.
Question from the webcast to Wallison: "Secretary Mnuchin has already said he is not going to eliminate the GSEs so what is the goal of this event?" Wallison: "The goal of this event is to persuade someone who outranks Treasury Secretary...(Trump)" - good luck
https://twitter.com/Alec_Mazo/status/968587683768356864
jtimothyhoward
FEBRUARY 20, 2018 AT 10:53 AM
The general view is that a loss by plaintiffs in the Perry Capital case–which asserted that FHFA violated the Administrative Procedures Act in the way it implemented the conservatorship provision of the Housing and Economic Recovery Act of 2008–strengthens plaintiffs’ claims in their case before Judge Sweeney in the Federal Court of Claims, which asserts a regulatory taking. That is, if the government CAN legally appropriate all of Fannie and Freddie’s profits in perpetuity while claiming to be “conserving” them, that action constitutes a regulatory taking for which shareholders (both preferred and common) must be compensated.
The Supreme Court’s denial of cert in the Perry Capital APA case also leaves alive several other courses of legal relief currently being pursued, including the breach of contract and breach of fiduciary duty claims remanded to the Lamberth court, the Jacobs-Hindes action in the State Court of Delaware (claiming that the net worth sweep is a violation of Delaware corporate law, and thus is void ab initio), and the actions in Collins, Bhatti and Rop, which raise issues related to the constitutionality of the FHFA director (independent of the executive branch) and the appointments clause (FHFA director DeMarco was not properly appointed to his position, and thus not empowered to agree to the net worth sweep).
Of these, Jacobs-Hindes, Collins, Bhatti and Rop all challenge the legality of net worth sweep (under different theories of the law from Perry Capital), and if successful would (or should) result in the net worth sweep being unwound. The Sweeney case and the Perry Capital remands, on the other hand, would leave the net worth sweep intact but award shareholders damages, in amount to be determined by the court.
DISTRIBUTED for Conference of 2/16/2018.
https://www.supremecourt.gov/search.aspx?filename=/docket/docketfiles/html/public/17-591.html
Fannie/Freddie Need Your Money Again, But Not Like They Used To
Feb 15 2018, 12:32PM
http://www.mortgagenewsdaily.com/02152018_gse_financials.asp
12/31/2017 CAPITAL RESEARCH & MANAGEMENT CO... Bought 67.1 Million shares of Federal National Mortgage..
http://money.cnn.com/quote/shareholders/shareholders.html?symb=FNMA&subView=institutional.
Karen PetrouVerified account
@KarenPetrou
Managing Partner of Federal Financial Analytics. Provides analytical and advisory services on financial legislative, regulatory, and public-policy issues.
Hidden in Fannie 4Q: new ROE standards that turn GSEs into utilities
This is key section. A required ROE makes a regulated company a utility – think power companies. Even biggest banks pick their own ROEs despite all the rules mandating higher capital, limited activities, etc...
More
W/an ROE requirement, GSEs cannot discount to compete and must maximize profit under FHFA controls to dividend back to Treasury.
2 replies 0 retweets 3 likes
Reply 2 Retweet Like 3
Hidden in Fannie 4Q: new ROE standards that turn GSEs into utilities https://t.co/fCcW3Eeq1S
— Karen Petrou (@KarenPetrou) February 14, 2018
Fannie Mae CEO: We will return to profit in 2018
"We are a b2b business, we’re not a b2c business."
https://www.housingwire.com/blogs/1-rewired/post/42534-fannie-mae-ceo-we-will-return-to-profit-in-2018?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire
After reporting it will need billions of dollars from the Treasury, as fully explained here, the CEO of Fannie Mae predicted the government-sponsored enterprise will return to profit for the full year 2018.
“We had a solid quarter in that our business performance was excellent,” Timothy Mayopoulos told HousingWire by phone this morning. “The quarter’s earning are not a reflection of our underlying business. We will also benefit from the lower corporate tax rate.”
So, how is that underlying business performing?
According to recent analysis by DBRS: At Fannie Mae, FICO scores are trending downward over time, DTIs increased slightly and LTV ratios remained relatively stable. The similarities in loan characteristics resulted in comparable delinquencies, disaster-affected areas aside, Mayopoulos adds.
“For the actual loss pools, cumulative net losses are at or close to 0% because the definition of credit event net loss excludes any mortgages 180+ days delinquent and the loans in these deals are not seasoned enough to experience certain credit events,” DBRS wrote in its recent, special report that reviews the U.S. housing market and the residential mortgage-backed securities.
“We do expect to be profitable in 2018,” Mayopoulos added, saying that Fannie Mae remains dedicated to their true customer; that is mortgage originators and investors.
“We are a b2b business, we’re not a b2c business,” he said.
Hidden in Fannie 4Q: new ROE standards that turn GSEs into utilities https://t.co/fCcW3Eeq1S
— Karen Petrou (@KarenPetrou) February 14, 2018
Sunday February 4th 2018 The man had a VISION worth considering... - Bill Maloni's GSE Blog
http://www.gselinks.com/
February 2018
Bill Ackman’s Investor Pres (Jan 2018): Fannie & Freddie; Herbalife Short; Nike, ADP, Mondelez; Chipotle; QSR; HHC; PAH
February 3, 2018
Pershing Square London Investor Meeting, January 29, 2018 6% net returns since inception (1/1/04) vs. 220.8% S&P 500 Core
https://investoralmanac.com/
Fannie Mae (FNMA) and Freddie Mac (FMCC)
Any proposal for housing finance reform must satisfy the following conditions in order to succeed
Simplicity to ensure broad support and minimize systemic risk
Appealing investment proposition to raise new private capital, including visibility into long-term earnings power
Fair treatment of current investors in Fannie and Freddie in order for new capital to be raised
While momentum for reform is stronger now than at any time since the conservatorship began, several key points of debate remain
Feasibility and desirability of creating new competitors
Appropriate capital levels, rates of return, and degree of regulation
Treatment of various classes of securities in Fannie and Freddie
If housing finance reform is successful, we believe Fannie and Freddie will be worth multiples of their current share prices
You're welcome.
HERA requires that FHFA as
conservator return the Companies.
HERA requires that FHFA as
conservator return the Companies to “a
sound and solvent condition” and act to carry
on the business to “preserve and conserve the
assets and property” of the Companies. Unfo
rtunately, through the Third Amendment, Treasury
and FHFA have expressly rejected complying with these requirements, as confirmed in
testimony by Director Watt of FHFA.
123
That these continuing actions violate HERA’s explicit
requirements is demonstrated by
the long-standing practices of
the FDIC under the virtually
identical provisions of the FDIA and of the principles underlying other U.S. and international
insolvency frameworks.
This is important to the stakeholders in
Fannie Mae and Freddie Mac, of course.
However, it is perhaps more impor
tant to the future of public po
licy and the government role in
future insolvency proceedings. If Treasury a
nd FHFA can conduct the co
nservatorships of the
Companies to strip out any value and prevent th
e restoration of regulatory and market capital
despite their obligations under HERA, this manipulation of the process w
ill dramatically affect
public confidence in the fairness and predictability
of government’s participation in insolvency
proceedings. These unprecedented deviations fr
om settled insolvency practices and creditor
protections undercut one of the
critical foundations of a market economy, and could call into
question the reliability of the government as a reso
lution authority. It is essential that HERA be
enforced and that Treasury and FHFA comply with their duties. Fair
and predictably applied
insolvency rules allow investors, creditors and even consumers to
judge the risks of investing in,
doing business with, or buying produc
ts or services from a comp
any. Without pub
lic confidence
in this process, a critical foundation of
our market economy will be lost.
ECONOMIST,@MarkCalabria,WRITES A LAWSUIT FOR THE COMMONS
Note he drafted HERA.
.@VP's ECONOMIST,@MarkCalabria,WRITES A LAWSUIT FOR THE COMMONS
— Conservatives against Trump (@CarlosVignote) January 20, 2018
Note he drafted HERA.
He points out my same idea: @USTreasury/@FHFA agreed on a contract SPSPA to not abide by a Law (HERA)& that's unlawful. He says it's in the 3rd amendmt, I say b4, in the covenant 5.3.#Fanniegate pic.twitter.com/P2gjTeHqEQ
CNN FNMA
Annual revenue (last year) $108.3B
Annual profit (last year) $12.3B
Google the below link
FNMA - Federal National Mortgage Association Stock ... - CNN Money
money.cnn.com/quote/quote.html?symb=FNMA
FMCC STAY LONG
American Bulls.com
Signal Update Our system’s recommendation today is to STAY LONG. The previous BUY signal was issued on 01/09/2018, 3 days ago, when the stock price was 2.0350. Since then FMCC has risen by +1.72%.
Carl Icahn Joins Bill Ackman In Bet On Fannie And Freddie - Forbes
https://www.forbes.com/.../carl-icahn-joins-bill-ackman-in-bet-on-fannie-and-freddie/
Jun 3, 2014 - Icahn took a $50 million position in Fannie Mae and Feddie Mac in March by buying common stock from Bruce Berkowitz's Fairholme Funds. Icahn bought 6.8 million shares of Fannie Mae for $4.03 per share and 5.7 million shares of Freddie Mac for $4.04 per share, according to a court document that was .
Thank God Monday is a Holiday.
matthew76 on stocktwit said:Jan 8th, 7:44 am
I bought fmckp cause I messaged g Bradford on twitter he messaged me what he owned.
Jan 9th, 11:13 am
matthew76 bought fmckp :down -0.91
matthew76 bought FNMFN
fnmfn is down .20 on Jan.12, 2018
Yes, awesome dream!
TD Ameritrade shows
FMCC Bid $1.91 Ask $2000.00.
It must be a computer glitch.