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It’s almost a year since the jury verdict and Judge Lamberth is yet to certify it. The government (and Lamberth) continue with the delay because once certified, it will be a precedent for other cases that do actually ask the NWS be voided.
Happy Friday Team, we ready for another Nickel drop?
$Mortgage $Rates $Fall For $Third $Straight $Week With Signs Of Lower Inflation, Fed Rates
by Michael Juliano June 20, 2024 4:12 PM
--- 30-year fixed mortgage rate averaged 6.87% as of Thursday, down from last week's average of 6.95%.
--- 15-year fixed mortgage rate came in at an average of 6.13%, down from a 6.03% average last week.
Mortgage rates have declined for the third consecutive week following signs of cooling inflation and lower interest
rates from the Federal Reserve, according to Freddie Mac
The 30-year fixed mortgage rate averaged 6.87% as of Thursday, down from last week’s average of 6.95%. A year ago, the rate registered an average of 6.67%, Freddie Mac’s Primary Mortgage Survey showed.
The 15-year fixed mortgage rate came in at an average of 6.13%, down from a 6.03% average posted a week earlier. The average rate was 6.03% a year ago.
"Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut," Sam Khater, Freddie Mac's chief economist, said in a statement.
Mortgage Rates Fall For Third Straight Week With Signs Of Lower Inflation, Fed Rates by Michael Julianohttps://t.co/j801Ho0pyB
— Cmdr Ron Luhmann (@usnavycmdr) June 21, 2024
Not gonna explain but if you wanna know LBHI global parent is the last CH to not close LBIE is the broker-dealer in the UK that use 5 banks, mostly UK, EU, sometimes overnight at MUFG and Mizhuo to move their Repo 105 around the world.
Just wanted to mention the conservatorship crashed the price of those assets on Sep 7, 2008 in taking Fannie and Freddie into conservatorship and the books were probably full of disputed value whether the govt would back them or not. Also Freddie Mac taking subprimes to bundle since 1995 was denied by LBIE counterpartie to accept its securities as collateral for Repo 105 txn since Aug 7, 2008.
The two are slowly moving along together and as counterparties who obviously did some swaps and asset sales (Lehman's LBI broker-dealer was the largest seller of US Treasuries of all IB in NYC). There's something stalled here and it's important for the recover and continuation of Lehman and LBHI to get off-thebooks $50-$100B pending back from its londonbanks counterparty once say - assets from Fannie Mae or PFDs are whatever were used as collateral but never recovered bc the dip in price required a cash call and the UK LBIE consolidates into LBHI so they will finish quickly but I suspect REPO 105 is why GSEs conservatorship is going to have an asset sale like Trump said to make all shares hit the NYSE with $50-$60 book value to start.
And that's your lesson to learn. I do the best I can for the max return. I sold out because in 2017 I saw Trump not making any sort of directives and found out Obama's FHFA Director was in charge and blocked even a private Paulson and Co + Blackstone $180M fundraise to free Fannie and Freddie.
See the time you've been here means nothing. And also, If you want to speculate and lose that's FINE. Don't listen to me - but I buy when I get the best possible return and the fact you were talking here 16 years I'm younger than you and since 2015 I have spent more time studying than talking.
Maybe just appreciate I have better hours put in studying markets than getting into some investor board I dont care if you don't like me - you will always lose if you don't accept help. Good luck. Maybe go get a job and buy more. I mean if i was down to 1% I would work (as I did in the beginning and I came home and stayed up all night to study to get where I am now finally moving alone).
I try to help people and you would rather tell me you have been here 16 years. Idon't care. I got great position because I knew when to strike. I watched all the way day - 4 years of socialist biden obama proxy? You think they were gonna not DEI and try to spend Fannie and Freddie money on stupid shit?
Tough love. And I am not those guys. I got in during 2023 and have crazy good gains with a few hundred grand as a nice addition to my main play in Oil and Energy global exporter stock.
You think I care they are wrong? My posts are a bit different buddy. But go ahead, sell the bottom of this little dip. It's your choice.
Learn to be thankful. If I was here for 16 years what a terrible waste of time and poor entry.
Calabria doubles down on the FHFA's "NW absorbs losses" slogan, seen in the 2023 Report to Congress released this week.
Calabria's take is mentioned in the post that I'm replying to.
And in the FHFA Report to Congress, ST switched the
FnF continue to build capital through retained earnings.
FnF continue to build Net Worth through retained earnings.
It will be good for you!
NO REHAB
— Conservatives against Trump (@CarlosVignote) June 18, 2024
They switched to "build NW" for the "Rehab FnF" required by Justice Alito and used as a slogan.
Prior "build Capital" can't be used since available C. is deep in the red.
People had hard time understanding no C. built w/ the offset w/ gifted SPS.
Easier w/ NW.#Fanniegate https://t.co/pOIMBFs0B5 pic.twitter.com/PTqsXVv8ve
FHFA: EARNINGS AND NW CAN ABSORB POTENTIAL LOSSES
— Conservatives against Trump (@CarlosVignote) June 17, 2024
Only the RE acct(Adjusted $-216B).
NW is the aggregated amount.
Capital Stock doesn't absorb losses(meaning reduction). It offsets a RE reduction,to prevent a negative NW. #POWELL'S REHAB CHECKLIST
#3 Absorb losses:RE.#Fanniegate https://t.co/rdIJhGIcQg pic.twitter.com/qmQaeJLlca
The hedge fund manager Ackman is our enemy, yet there is always a paid shill stating that he is one of us with a 10% stake in Common Stock.
A government snitch, likely ordered by the government to buy common stocks precisely to "advance a business", knowing that he is famous for recruiting an army to deceive on social media and peddle his lies. This is why he has just promoted his CFO to the post of President in charge of overseeing him as CEO, instead of hiring an outsider.
Let alone claim that a token (means of payment) is a commodity created by "miners".
His famous GSE slides say it all:
-"Re-privatization of FnF", to replicate the 1968 Privatization of Fannie Mae. Based on the cover-up of all the statutory provisions that state that the government has no investment in FnF at this moment:
-Restriction on Capital Distributions. Exceptions;
-FHFA-C's Rehab power (soundness);
-The original UST backup of FnF at rates similar to Treasuries, as part of the Charter dynamics;
-A Fee Limitation of the United States, which means that the UST can make profits with FnF's assets and securities, other than the aforementioned original rate on the UST backup. This feature can't be amended, but it has to be revoked the entire Charter Act.
-Hinting that the Supreme Court said that the FHFA has absolute discretion in its actions. A big lie later peddled by his clerk Bradford:
-The greatest lie of all: "FnF continue to build capital through Retained Earnings", based on the Financial Statement fraud in FnF (SPS LP increased for free and its offset that reduces the RE accout, absent from the Balance Sheets). Zero regulatory capital built, and the Net Worth being built, is SPS.
Because he is a sophisticated investor and because he uses publicly available documents to "advance a business", this isn't an investment case when his premises are outright lies, but stock price manipulation.
-Let alone calling the common stocks "options", to later portray himself as options trader expert, in order to justify that the stocks are trading rock bottom, when it's precisely due to the machiavellian conditions and his take, the reason why they trade rock bottom, because the commons stocks represent a legal claim on all the future profits of FnF after the payment of compensation to Preferreds, and now they post $0 EPS with the NWS 2.0. So, you tell me the target price of this.
He aims to conceal this fact: "perpetual options". He was annoyed because I said that the JPS have turned into stocks trading at a discount, like the 30-year zero coupon redeemable Medium Term Notes in FnF, and he came up with this idea of commons being "options". ROFL.
The Net Worth isn't capital to absorb losses.
Net Worth or Equity isn't a line item or account that you can debit losses from. It's an aggregated amount of its components. A sum.
Only the Retained Earnings account absorbs the future losses that will come from the quarterly Income Statement, currently an adjusted $-216B combined.
Capital Stock, which is what FnF are building in their Equity or Net Worth with the SPS, just offsets a reduction or Accumulated Deficit Retained Earnings account, in order to prevent the Net Worth from turning negative.
Calabria:
its net worth, or capital, to absorb losses from those mortgages stands at just over $50 billion.
Catman attacks Freddie 2nd Mortgages ...
Freddie Mac's Feckless Foray Into Second Mortgages
By Mark Calabria - June 20, 2024
The Biden administration is currently reviewing a proposal by mortgage giant, Freddie Mac, to begin buying second mortgages. Fannie Mae would be certain to follow. Not only would such be inconsistent with the administration’s legal obligations, but it would also intentionally put the taxpayer and countless families at considerable risk. Freddie’s proposal should be rejected.
In 2008, as Senate staff, I helped create a statutory process for Freddie Mac’s regulator to approve or disapprove new products or activities. The process was not meant to be burdensome but instead transparent. It was also meant to ensure that any new products did not conflict with the safety and soundness of either Freddie, Fannie, or the mortgage finance system.
The current proposal fails on that account. As of Q1 2024, Freddie Mac backs almost $3.5 trillion in mortgages. Yet its net worth, or capital, to absorb losses from those mortgages stands at just over $50 billion. That’s leverage of almost 70 to 1. That’s twice the leverage of Bear Stearns in the quarter before its failure in Spring 2008. Make no mistake, Freddie Mac, today, is dangerously leveraged and does not have the capital on its books to support the risk it is currently taking. Responsible supervision calls for shrinking Freddie’s footprint, not supporting an expansion.
The second mortgage and home equity loan market are already adequately served by existing and far better capitalized, lenders. In fact, commercial banks, the primary lender in this market, are experiencing historically low loan to deposit ratios, indicating significant balance sheet capacity to serve this market. It appears the primary reason for the proposal is to benefit not homeowners but nonbank mortgage lenders. I’m not without sympathy for nonbank mortgage lenders, given the depressed state of their business, but to approve this product is to pass along the losses knowingly and intentionally to the American taxpayer.
Perhaps even more puzzling is that the Biden administration only a few weeks ago asserted that nonbank mortgage companies were a potential risk to our financial system, going as far as to call for a Congressional backstop for such lenders. Many of the risks raised by the administration are real and of concern. Yet, if such risks are real, why also propose an expansion of those risks via a Freddie Mac second mortgage product?
If the real purpose of the proposal is to protect borrowers from churning by mortgage lenders, a concern I share, then I would encourage Freddie Mac, and Fannie Mae, to adopt the net tangible benefit test for refinancings that I developed with then Fannie Mae Board Chair Sheila Bair. The reversal of that policy, after my departure, left borrowers vulnerable to equity stripping.
A major contributor to the 2008 mortgage crisis was the continued stripping of equity from mortgage borrowers via refinancings and second mortgages. These practices left many families owing more on their mortgages than their homes were worth. While Freddie promises this new product would still leave borrowers with sufficient equity, 2008 should remind us that home values can fall fast and far. As we are also clearly passing the peak of home prices this cycle, we should not encourage borrowers to reduce their home equity, their safety net, just as the waters are possibly about to get choppy.
Before the mortgage industry starts counting its profits, from dumping this risk onto the taxpayer, consider that, even if approved, this product would likely end under a new administration. Hopefully, the Biden administration will reject another one of Freddie’s feckless forays.
great news - quality loans is the difference - RELEASE THE GSEs! https://t.co/92MGB2vSBp
— Cmdr Ron Luhmann (@usnavycmdr) June 20, 2024
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