Fannie Mae-No Politics (FNMA)

[Patswil]

Sandra Thompson will hopefully get Trumped------You're fired!!

[ron_66271]

Yes 1977, Carter! BO Sued a Chicago Bank.

In the 90’s, And won.
It was all just as set up. The democrat family that owned the bank made a fortune as their shareholders lost everything.

That suit forced the Banks to make loans to unqualified applicants.



Ron

[Donotunderstand]

baloney
that simply is not true

That ACT was passed in 1977 - way before the 2008 collapse
And it did not change much in terms of housing availability or anything else

WHY?
aside from being mostly PR and HOT AIR ---- the number of loans that happened because of the ACT is the hair on the tail of the dog

https://www.investopedia.com/terms/c/community_reinvestment_act.asp

[stockanalyze]

he would not be. only objective : shut them down so that they cannot be misused for various programs, affordable housing to get votes. that is why mnuchin, calabria all were on cnbc and did nothing but foked even more. paulson would be no different (if). why not ask him a question in a town hall meeting " you or mnuchin or calabria did not do anythng on gse's in 4 years, what is your plan to get them out of 16 year fake conservatorship imposed by bush where $1500 is down to $0.40 with retirement and 529 money gone?"

[Donotunderstand]

blame the rating agency ??? (some people ask why F and F were AAA)

anyway - I would suggest the BANKS that gave out liar mortgages and 5 year interest only - and the infamlous 80-10-10-10 -- no money down mortgages - re sold as strips (imagine owning the first 10% decline ?)

BANKS got greedy and dirty --- and some just plain dumb

[Donotunderstand]

hey double x triple the SQ FT and why not?

would have to see them - but no one is going to solve a housing crisis with single family homes that with land etc. cost 200K to build

[Donotunderstand]

20 x 14 -- 280 SQ FEET

Indeed - if one could replicate that - in say 25-30 by 20-25 (( 600-750 SQ FT house) - for say 35-40K ---- they should be used

[Donotunderstand]

Who knows

What baffles me - is why those who love DJT ---- are sure he will be good - after the reality of four poor years .

[homedaddyjake17]

i have been with tis from the start NEVER have seen this ever to me something is coming down time will tell

[stockanalyze]

they may put another calabria type in place to fok fannie and freddie and the shareholders to get rid of affordable housing. many here do not get this and keep rooting. either party would not do a thing and i have no clue who would. courts are in their pocket if we still haven't learnt so.

[stockanalyze]

i would not read so much into it, this is a deep rooted conspiracy. when and if it turns around, those in congress will be rich as they are openly allowed insider trading and you will be the last to know

[TightCoil]

I'll go out on a limb and forecast that
FNMA and FMCC will each gain 20 cents
this coming week...LOAD UP early in
da mornin''

[homedaddyjake17]

i wonder if anyone watch short squeeze it was minus 26 and then minus 5 so

that tell anyone something

[Golfbum22]

Appointed picks have not helped the GSE's at all, this is not a political post, but only showing the persons who have done nothing to help the GSE's or put more cement boots on them.

last term DJT picks

his 3 worst picks- Mnuchin, Calabria, and Pence

this term JB

his worst picks- Yellen and ST

we really need someone like Paulson as Treasury Sec. and a much improved FHFA person or no FHFA at all would be best.

Go FnF

[stockanalyze]

they are above the law, so legal or not legal does not matter, if you havent learnt that in last 16 yrs

[stockanalyze]

who is patrick? you all are so positive, still. is it a good time to get in? serious question. why? after losing so much don't have the heart. wondering if they will keep showing you lolipop till nov 5th and them a boot

[stockanalyze]

yups, he wants receivership and close them down. he does not like affordable housing and doling out for votes. so shutter them. why do you think he was put in place? he thinks shareholders should not exist. he is the worst. look at the letter agreement he put in place. he is the architect of hera and i believe he started writing it since 2004, a long range plan to do this, well coordinated with heritage foundation and fellow travelers funded by large banks : free money for banks at the expense of taxpayers

[RickNagra]

Oh wow. Gabby loves me.

[FNMAstalker]

True

[Stern is Bald]

Man you are well researched… The CRA was enacted in 1977 and I had zero Biden or Obama was President… Man I just learned a lot thanks!!!

[MannSinger]

New FHFA director can fire CEO when GSE is Conship.

ST just fired CFO of Fannie Mae.
If Dems wants to keep current CEO longer under Trump then Dems needs to release GSEs and have recap funded by Dem leaning investors.

[EternalPatience]

The answer to this question is in the 10K and the conservatorship rules on the CEO pay ceiling (600k). Hint : look at the pay for CEO and what the president makes in the GSE. You will get your answer on the loophole..

[RickNagra]

Oh wow. We are all gonna get the runs.

$FMCC $FNMA Setting Up For A Run

— Patrick (@InvestIt3) May 10, 2024

[Rodney5]

Holding two positions in the hierarchy remained me of Director Lockhart Regulator, and Director Lockhart Conservator at the same time.

The Director of FHFA as regulator violated the safety and soundness act and the administrative procedures act by not following the statutory duty to approve new products issued by the GSEs to Treasury for the purpose of stabilizing the secondary mortgage market.

The law required the publication in the federal register of the SPS with their variable rate liquidation preference tied to the commitment. It requires a public comment period, and a rule making process to make the SPS legal. It is the same law that required the capital rule. And the same law that required FHFA a year ago issue the new products law for MBS products. They have ignored this requirement for 15 years.

Director Lockhart Regulator, and Director Lockhart Conservator. Holding both positions as Regulator and Conservator; Conservator Lockhart is required by law to file notice to himself as Regulator.

The Safety and Soundness Act required Director Lockhart as regulator not conservator to approve a new product issued by Director Lockhart acting as conservator FHFA-C (SPS with variable liquidation Preference) to Treasury under the terms of the SPSPA for the purpose of carrying out the secondary mortgage market. He was required as regulator to file notice in the federal register, seek public comment and issue federal regulations for the new product we call the Senior Preferred shares sold to Treasury.

HOUSING AND ECONOMIC RECOVERY ACT OF 2008
Page 2689
SEC. 1321. PRIOR APPROVAL AUTHORITY FOR PRODUCTS.
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf

[Donotunderstand]

EXACTLY

imagine if he had - not - created the IOU at the LP ?

granted we (equity) would still face the original "investment" but not another 100B or so of mythical obligation !!!

what a total con - smoke and mirrors help for equity that choked them - and then he put them in a box with a needed capital ratio greater than our national debt

he was ugly - during his time under DJT

[Donotunderstand]

?
So - Calabria - 12 years ago - wanted RECEIVERSHIP ? I assume that would be their end?

[Donotunderstand]

? move on the GSEs --- Are those his words ? (Which can mean anything at all)?

[trunkmonk]

why is it wrong, its not, as long as they work for no other company there is no conflict of interest. I had a cousin, who was on Bank of Americas BOD for a couple years. that kind of company is different, everyone is their competition, so he could do nothing but sit on the BOD. They actually pay about equal to minimum wage to sit on that board, that i know for a fact. He couldnt afford to live since BOA stock went all the way down to 6 back then, he had a lot of it. He had to quit the board and go to work for himself.

I have seen everything, and to date, GSE conserve is the epitome of corruption in our country today. until its over, and commons are made whole, there is nothing good about what happened or is happening.

[Fannie Heyyyyy]

You are wrong WISEMAN.
It is a common practice in large corporations that the company CEO also serves as Chair on the Board of Directors. While some will argue a conflict of interest, others feel that it is very beneficial for the long term health of a Company.

I assure you, this practice is quite legal.

[Wise Man]

"Regulatory policy": ST, responsible for the absence of the Critical Capital level in the ERCF.
HERA amended the FHEFSSA's Risk-Based Capital requirement, the Minimum Leverage Capital level and allowed the FHFA to include new capital metrics like the CET1 and the Tier 1 Capital, along with the concept of Capital Buffers, but nothing about the Critical Capital level that remains as is: 1.25% of the Retained Portfolio and 0.25% of the off-balance sheet obligations (MBS Trusts), which is met with Core Capital.


The Critical Capital level triggers a Conservatorship, established for Critically Undercapitalized enterprises.

Now it's when

"regulatory policy, capital policy and financial analysis".

Jackpot!

Not meeting a level called "critical" bothers to the scammers peddling the idea that FnF have been rehabilitated, a prerequisite required by Justice Alito, reading the Incidental Power as a tool to achieve the FHFA-C's Rehab power of soundness, with some leeway. Not a choice.
With an adjusted $-216B Accumulated Deficit Retained Earnings accounts together, the sole account that absorbs the future losses, you need a lot of pictures with your thumb up and with half smile Gioconda-style, to conceal this fraud.

[Wise Man]

President, CEO and serves on Fannie_Mae's board of directors.
You can't make this shit up.
The same person holding the job of President and CEO has always been controversial and it's discouraged, as the President serves as a balance position to counter the power of the CEO.
The CEO is in charge of long-term goals.
The President is in charge of the corporate picture: costs, marketing, etc.

But a CEO serving on the BODs is even more controversial. The BOD oversees the management. This can't be done if a CEO is in the same table with other board members.

It could be one of the reasons of the Financial Statement fraud in FnF, with the SPS LP increased for free and its offset, absent from the Balance Sheets since December 2017 (not the initial $1B SPS LP issued for free and its offset with reduction of Additional Paid-In Capital account -Core Capital-)

, in order to peddle the lie of "FnF continue to build capital through retained Earnings", later echoed by the hedge fund managers like Bill Ackman and his clerk, Bradford, along with the FHFA director, ST.
We are witnessing how the CEOs of both FnF grab more power in order to conceal this fraud that, in turn, would unveil the prior Separate Account plan with the dividend payments, as both divs and SPS LP increased for free are capital distributions restricted, and the exceptions kick off to legalize them. It works as follows:
- Pay down the SPS (U.S. Code §4614(e)) and recapitalization outside the balance sheets (CFR 1237.12), with the dividends (assessments sent to the Treasury)
- Common Equity held in escrow, with the SPS LP increased for free, as we can see in this image:


Also in compliance with the FHFA-C's Rehab power.

We see that FnF build Capital Stock (SPS) not regulatory capital, and not even the FHEFSSA-invalid capital metric "Capital Reserve" (Capital Surplus in the Federal Reserve System).

Don't expect the FHFA to bring it up, with its long track record of breaking the laws: PLMBS, CRTs, artificial losses, etc. Actually the FHFA is behind this fraud, knowing that ST arrived at the FHFA in 2013 as Deputy Director in charge of "regulatory policy, capital policy and financial analysis". Jackpot!

[Wise Man]

The PLMBS rallied after FnF were placed in Conservatorship, as we can see in this image, the trough date was three months later, then, a rally in price to the extent that Freddie Mac commented in a report, that it will halt the pace of PLMBS sales.
Freddie Mac posted in the 3Q2010 results an increase of $3,947 million in AOCI (Accumulated Other Comprehensive Income: unrealized losses in AFS securities. Equity), "primarily resulting from fair value improvements on available-for-sale securities". In other words, the PLMBS market was improving dramatically.
Maybe many billions worth of write-offs would have been avoided in the prior years, had they kept the position, or this sale at fire-sale prices was planned.


It seems that she made up this quote:

Another year later, at the end of 2007, defaults on private-label MBS were so high that the market was shut down entirely,

Subprime mortgage doesn't mean toxic mortgage. They are very profitable.
It was more damaging the Obama's MHA programs with the prior Incur Loss accounting, that made FnF set aside a provision equal to the concession granted to borrowers, not the actual expected credit loss. The same accounting rule that made Mnuchin millionaire, as his consortium got a rebate from the FDIC (loss-sharing deal) for this artificial loss in IndyMac and they ended up getting more money from the rebate than what they invested in the rescue deal. Hence, he was called "foreclosure king" when he found a gold mine with the foreclosures.
With the Amendment ASU 2011-2 approved on June, 2011, it's up to the enterprises to consider if a borrower that was current on its payments, is at risk of default. The objective was to increase the number of Troubled Debt Restructurings (TDRs) and saddle FnF with fabricated losses.

Also, take into consideration the robosigning case: the mortgage servicers (banks) were eager to foreclosure on fast, in order to protect the second-lien mortgage, a business stolen from FnF (collateral-sharing), as their Charter Act allows "to lend on the security of a mortgage" ($2T+ second-lien mortgages outstanding should be repurchased to avoid another robosigning case and boost the banks' battered Balance Sheets)

Some PLMBS were sold with fraudulent information. Hence, the $203B porfolio lawsuit against the Allies (18 financial institutions). A $25.5B settlement.
The PLMBS was an illegal product as it lacked one of the enumerated Credit Enhancement operations in the Charter Act. Instead, a small UPB was covered with purchase of CDS (Credit Default Swaps) which is illegal, as it isn't authorized in the Charter Act (many insurers went bankrupt by the way: Ambac, etc.). This was solved with the Commingled Securities unveiled in June 2022 (100% guaranteed against default. Number 3 in the Credit Enhancement clause).
Today's Credit Risk Transfers (CRTs), but the PMI (Number 1 in the aforementioned clause), are illegal too. This is why it's been requested a $20B cash refund and a $20b posting in the Retained Earnings account (CRT expenses, net. After the payment of Income Tax)

Finally, outside the PLMBS, there was another fraud to FnF in the sale of mortgages individually. The famous "representations and warranties" or "putback demands", when FnF force the sellers of mortgages to buy back the mortgages sold with fraudulent information.
It was memorable the settlement with Bank of America. It agreed to pay $1.28 billion to Freddie Mac on the effective date December 30th, 2010 and $1.52 billion to Fannie Mae, over Countrywide repurchases.

[jcromeenes]

You hit it. She would be fired BECAUSE she wants the conservatorship to end while many others in DC want the gravy train to keep funding unfundable projects.

[PennMilitia]

Hope Trump cans them all

Of course most of them shouldn’t be there anyways.

[TightCoil]

I don't expect most of you will believe this: But at 10:30am
Pacific Time, i made two posts here on IHub, but neither got printed...
I made a prediction that Fannie would close at $1.45 to $1.48
and Freddie would close at $1.33 to $1.38
Cross my heart, i'm not just making this up

[Golfbum22]

ST fired not the CEO

[RickNagra]

That is wrong. Aldomovar will not be fired. She has done nothing wrong. In fact she wants the conservatorship to end. On the other hand Thompson will be fired for sure day one that is a given.

[ewtrader]

Hmmm, wonder if he is in like gin, with his comment on shorting banks …

If I had to guess I would say he is …. 🐂 ish at least , just a guess

[ewtrader]

Hmmm, wonder if he is in like gin, with his comment on shorting banks …

If I had to guess I would say he is …. 🐂 ish at least , just a guess

[Golfbum22]

she will be fired day 1 of a DJT Potus

[EternalPatience]

What are the chances that some one who has no idea about the difference between FHFA and FHA, say FHA atleast once during the interview

What are the chances they say court cases are by greedy share holders at least once??

[Guido2]

Thanks for sharing.

EVERYONE: Like and repost the entire thread.

[EternalPatience]

She will also be potentially asked to leave if Trump wins. Both the GSE CEO positions are indirectly political appointees too. Just a guess

[RickNagra]

I just read the complete thread. You are right it is quite good.

[krab]

It's about women in exective positions. CEO of FNMA was mentioned.
Priscilla Almodovar is President and Chief Executive Officer of Fannie Mae, a leading provider of mortgage financing in the United States, and serves on Fannie Mae's board of directors.

[ron_66271]

Do You Understand the CRA?

The Community Reinvestment Act forced the banks to make loans to unqualified applicants for home loans.

Don’t blame the banks.
Hint; JC/BO.



Ron

[Govforprofit]

An amazing story. Read the complete link. The truth is coming out! :

The most overlooked part of the 2008 Great Financial Crisis was its cause.

Sure, The Big Short is one of your favorite movies, so you know it had to do with credit rating agencies assigning AAA and AA ratings to subprime mortgages.

But do you know why they were doing that?

— Lauren Self (@laurenlself) May 10, 2024

[RickNagra]

Oh wow. This might explain the 10 cent pop end of day. Someone was slapping the ASK perhaps the CNBC camera dude.

[stockanalyze]

yes something is up , election is near so must do something but their hands are tied with fannie mae and freddie mac as they are undercapitalized

[nagoya1]

Looking forward to GSE upward movement more next week, there has to be something going on behind the scenes.
Not giving up and adding more.
Far from 0.05 skateboarder oracle.
Funny, where have all the gse pref malarkey gone….1 a day. Weep weep
Fnma