Fannie Mae (FNMA)

[Donotunderstand]

?
You do know that financial institutions had their most profitable year ever last year?

But they are dying under the burdens

There should be relief for the smaller and medium size banks

But the top 10 banks - which control most of the action in every way - need to be regulated. They are all Wells Fargo if you remove the veneer

[Donotunderstand]

[F1Greenwest]

Someone will looks with a silly face on the day that doesn't cover that gap and keep going up ...

[tutt1126]

Yes I think so, also trump mortgage LLC in 25 states had failed .

[955]

The TRUTH will set you (us) free! That is why the left fight so hard to suppress it.

Tomorrows news today!
https://www.infowars.com

This is another pathetic attempt by Hensarling( who is probably lobbying for Dave Stevens job at MBA) and Corker /Warner to eradicate the GSE. Mel Watt and Mnuchin need to put there big boy pants on and deal with GSE reform now! The unfortunate story is the warrants. Either way they will spur more lawsuits. It is unreal to think that our politicians have waited this long to try and deal with a major component of our economy. Corker, Warner and Hensarling are elected officials who are lobbyists. Bought and sold by the banking industry to work against middle class Americans. Taxpayers bailed out the banking sector and the auto industry, and if politicians didn’t politicize the GSE, we would not be in this position

[955]

Warrants ARE illegal. Do some DD.

Not a recco

The warrants are going to be extremely difficult to challenge. I am very doubtful the warrants will ever be tossed.

Not a recco

[955]

All F&F gaps fill, ALWAYS. Watch and learn.

[955]

A roll back of Dodd-Frank would be a good thing as it places too heavy burden on financial institutions adding significant cost of doing business which is passed on to the tax paying public.

Financial CHOICE Act is a bill introduced to the 115th United States Congress in 2017 that would, if enacted, roll back "many of the protections in the landmark Dodd-Frank 2010 federal law, including the "strongest" Wall Street "regulations from the financial crisis.[1] The legislation passed the House 233–186 on June 8, 2017.[2] The 600-page[1] legislation was crafted by Congressman Jeb Hensarling (R-TX), chair of the House Financial Services Committee.[2]

[955]

Why Fannie And Freddie Have A Path To Survival

Wayne Duggan
Benzinga
December 7, 2017

While most U.S. companies are hoping for an earnings boost from tax reform, Federal National Mortgage Association (OTC: FNMA) and Federal Home Loan Mortgage Corp (OTC: FMCC) are simply hoping to survive. According to one analyst, reports on a newly-drafted Senate housing finance reform bill are good news for Fannie Mae and Freddie Mac investors.

The Analyst
Height Securities analyst Edwin Groshans.

The Thesis
Groshans says the current draft of the housing finance bill allows Fannie and Freddie to continue to exist in conservatorship until other competitors enter the MBS guarantee market.

“This development is a positive for GSE shareholders and we have an encouraging outlook on the probability of passage of a bill as Treasury Secretary Steven Mnuchin, Senator Bob Corker (R-TN), and House Financial Services Committee Chair Jeb Hensarling (R-TX) appear to be working together to develop or support bipartisan housing finance reform legislation,” Groshans wrote Thursday.

Details on the bill are still unknown at this point, but Groshans said it appears as if Fannie and Freddie may be allowed to exit conservatorship at some point down the line. Treasury Secretary Steven Mnuchin has said housing finance reform will be a top priority of the current administration in 2018.

In November, Bloomberg reported the Treasury has been discussing having Fannie Mae and Freddie Mac retain a portion of the fourth-quarter dividend payments in an effort to begin recapitalizing the government-sponsored enterprises.

Fannie and Freddie have about $7 billion in dividend payments due to the Treasury by the end of the year, but Bloomberg reported they may be allowed to retain $2 to $3 billion, another positive step for Fannie and Freddie investors.

Price Action

Despite the potential positive developments, the market seems to have little optimism for Fannie and Freddie at this point. Both stocks are down more than 2.3 percent in the past month and are down more than 23 percent year-to-date.

ENJOY THIS ARTICLE https://finance.yahoo.com/news/why-fannie-freddie-path-survival-170633748.html

[eltatriton]

What leverage does Corker have to get Jumpstart v2 added to the spending bill?

[primewa]

No matter what crook gov said or any crook has some agenda planning wanted to put out a lot bogus news so they can shake out the week hand.. Whether, common or preferred eventually will get compensated fairly after 9 years of C-ship. So much crook in here talk trash but in the end no one will live forever... $$$$ will change from one hand to another hand and in the end everyone will return back to mother earth ...That is the fact and it is true and it is dam true. So stupid money can blind the eyes but no one can be appreciated how blessing can be to breath fresh air when wakeup in the morning then compare the massive fire in CA at the moment. F&F will stay to rebuild what ruin by mother nature..Just think about that!

[tutt1126]

Financial CHOICE Act is a bill introduced to the 115th United States Congress in 2017 that would, if enacted, roll back "many of the protections in the landmark Dodd-Frank 2010 federal law, including the "strongest" Wall Street "regulations from the financial crisis.[1] The legislation passed the House 233–186 on June 8, 2017.[2] The 600-page[1] legislation was crafted by Congressman Jeb Hensarling (R-TX), chair of the House Financial Services Committee.[2]

[Sogo]

Plus Washington Federal Case still progressing, correct? That's the best plaintiff argument of all of them, if you ask me. Challenges the original '08 action.

Just imagine a judge nullifying the last 9 yrs of this saga and ordering just compensation, all dividends in arrears to be paid immediately plus interest. In a just world that would be the judgement. In our world, appeal would take 2 more years, the appeal again another 2 yrs, by which time the final verdict by the supreme court after another year will be to tell the plaintiffs they're totally correct but award them nothing.

[Release us]

Corker is trying to slip the Jumpstart 2.0 into the spending bill. I'm thinking it's a good time for the smackdown. President Trump hates him. Corker is toxic. Time for Treasury and FHFA step up.

Even if he does get it in... Treasury and FHFA can still do a 4th amendment.

And this bill to stop the contribution to the "Housing Trust Fund" if a full sweep payment is not made. This could be a violation of HERA???

What's happening with the "Quick Peek"?

[action8101]

I’d fill that gap in a heartbeat if it happens

[JosephS]

Yes. There is a gap at 2.45-2.50 that has not filled. Not every gap fills....

Most do but not all and not always.

[Surfonium]

Is there one at 2.45?

[JosephS]

Preferreds are still cheap. I do not intend to buy anymore and may swap a tiny fmckj position for fnma if fmckj:fnma gets to 3:1 ratio.

Prefs super cheap if gse reform gets done in next 2-3 mos.

Not a recco

[action8101]

This sounds about right.

https://twitter.com/weiyenzhao/status/938909261010104320

[JosephS]

Probably 8-10

Who knows how this goes. If they push eff-start 2.0 into omnibus, nothing happens till 2019. That would be sad because they need capital to survive. Without it, they can argue they are insolvent.

Not a recco

[MRJ25]

"This is another pathetic attempt by Hensarling( who is probably lobbying for Dave Stevens job at MBA) and Corker /Warner to eradicate the GSE. Mel Watt and Mnuchin need to put there big boy pants on and deal with GSE reform now! The unfortunate story is the warrants. Either way they will spur more lawsuits. It is unreal to think that our politicians have waited this long to try and deal with a major component of our economy. Corker, Warner and Hensarling are elected officials who are lobbyists. Bought and sold by the banking industry to work against middle class Americans. Taxpayers bailed out the banking sector and the auto industry, and if politicians didn’t politicize the GSE, we would not be in this position "

I like your take on this. It's what I think. If the government does not deal with this correctly then there will be more law suits.
Any resolution will have to address the major law suits. In fact RNC resolution stated that the law suits need to be settled.

[Dabeav]

Exactly. 2.70 ish gap has filled!

[Jason-H]

dilution is fine. Just release us. PPS must not be $300, but $30 is good

[JosephS]

The warrants are going to be extremely difficult to challenge. I am very doubtful the warrants will ever be tossed.

Not a recco

[JosephS]

I would conclude that they paid the dividend. Until something passes both houses and is signed(or admin reform is done in lieu) I will not be celebrating or thinking this is over.

[Dg1964]

This is another pathetic attempt by Hensarling( who is probably lobbying for Dave Stevens job at MBA) and Corker /Warner to eradicate the GSE. Mel Watt and Mnuchin need to put there big boy pants on and deal with GSE reform now! The unfortunate story is the warrants. Either way they will spur more lawsuits. It is unreal to think that our politicians have waited this long to try and deal with a major component of our economy. Corker, Warner and Hensarling are elected officials who are lobbyists. Bought and sold by the banking industry to work against middle class Americans. Taxpayers bailed out the banking sector and the auto industry, and if politicians didn’t politicize the GSE, we would not be in this position

[cfljmljfl]

Funds not for ACA. Watt wants funds for Affordable Housing Payment that was legislated in rhe 2008 HERA.

[TheDon3]

Shall we conclude anything if the dividends end up being paid end of december/january?

[QServus]

If you're shorting

[EternalPatience]

This bill is cunning. It is better to get killed than be in conservatorship for more years until competition builds. Another cunning corker bill. I wud prefer to rip the bandaid off and kill us rather than another drag

[HoldenWalker99]

No - this is a bill to delay the administrative option another year and let Congress have another crack at it.

[HoldenWalker99]

Possibility of receivership/wind down is the only thing keeping preferred where they are. Any recapitalization plan would require retirement of preferred shares especially when that could encourage settling the lawsuits.

[J CANADA]

TOMORROW WILL BE BETTER

[J CANADA]

ENJOY THIS ARTICLE https://finance.yahoo.com/news/why-fannie-freddie-path-survival-170633748.html

[955]

I read this as a bill to stop payments to the housing trust fund upon F&F keeping 2-3 Billion each for re-capitalization at the end of the month.

https://www.congress.gov/bill/115th-congress/house-bill/4560/all-actions?r

[ada]

They always fill the gap on this. You can bet on it. That’s what we saw today.

[curious999]

the prefs are totally mispriced, particularly older issues & 50's, and have been, jmho, for long time

but particularly crazy last few weeks b/c of tax selling, hedge funds who closed/closing shops and are foreced sellers, and redemptions at fairholme.

they SHOULD be trading at discount to par for all reasons you so clearly state, but believe "fair value" is where they traded in february before d.c. circuit fiasco

[955]

Agree with your assessment. Corker's last ditch effort to stick it to shareholders. Corker and Stevens know about Trump's plan for shareholder friendly policy. Load up folks!

I think there is a reason French proposed that legislation.....he knows it is about to happen(2-3b in retained capital) and its all the senate finance committee can do to stop the inevitability.

Once FNMA has reserves and NYE passes we are good to go

[wil318466]

Clay's video today was one of the best I've seen. I actually liked it a lot.

[ClayTrader]

* * $FNMA Video Chart 12-07-17 * *

Link to Video - click here to watch the technical chart video

[HoldenWalker99]

No Twitter action on GSE reform from MBA today. Very active on Twitter all day and no comment on Corker-Warner. Seems like they're left out which is good news for GSE shareholders (maybe even common shareholders). Something to note.

[kthomp19]

Dilution dilution dilution... that's why common shares are down... capital raise and warrants... maybe $5/share short term and $10-15/share in years... then adjust for probability of wind down vs. recap... trading about where it should be.

What explains the junior preferreds trading at 30% (or less) of par? The possibility of wind-down with the senior preferreds still on the books (meaning zero for junior preferreds and commons)? Or just the chance that if par is ever reached it will take a very long time and junior preferred dividends may never be reinstated?

[955]

Tomorrow we be back right where we started!

So much for the "Good News" helping the PPS. Seems to me we're actually getting beaten up over the "Good News." Just another Fannie Mae day.

[stink stack]

I hope you made money trading today. :)

[along4zride]

Nice observation. I’m going to keep an eye on that.

[whipstick]

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Unwind the entire thing

[955]

Yep.

[HoldenWalker99]

Dilution dilution dilution... that's why common shares are down... capital raise and warrants... maybe $5/share short term and $10-15/share in years... then adjust for probability of wind down vs. recap... trading about where it should be.

[jog49]

Volatile 42¢ swing today.....$2.68 - $3.10.

[jcromeenes]

So much for the "Good News" helping the PPS. Seems to me we're actually getting beaten up over the "Good News." Just another Fannie Mae day.