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You’re dealing with the Government, so NOTHING looks objective. Just the same BS, until someone grows a pair.
Nah. The typical voter cares more about whether or not a baker has to make a cake for a gay wedding, or whether a guy grabbed some female's ass 25 years ago, than delve into the intricacies of housing. Half of them don't know who the Vice President is, and probably 95% don't know who Corker is...
Eltatriton, How much did he add in September?
Who is going to do this "enforcing"? Having been a Fed in enforcement for ten years I can tell you that it takes troops with their boots on the ground. The current environment is eliminating regulatory headcount. Talking about enforcement is one thing, doing it is another.
yes
we agree
and I agree with Mnuchin
all income gathered by the GOV funds GOV programs
I simply said the CSR income - less than 10B -
1. Goes to the same pot as all other income
2. In size is so tiny relative to 600B of deficit and Trillions of spending that it is not even a rounding error
Not according to Mnuchin. He specifically said in the Bartiromo interview that the GSE dividends were used to fund gov't programs. I'll take his knowledge on the subject at face value.
The news does NOT look great for us, if you look at it objectively.
reduction of deficit per year marches on post stimulus
https://www.bing.com/images/search?view=detailV2&ccid=ubdlBovt&id=C4BB4B41F64A37B52E9D95E1D7C2D7C5163D271F&thid=OIP.ubdlBovtTRPBBVpr4J1E6QEsEG&mediaurl=http%3a%2f%2fsi.wsj.net%2fpublic%2fresources%2fimages%2fNA-CG479_BUDGET_9U_20150713140009.jpg&exph=612&expw=700&q=annual+deficit&simid=607992887993173199&selectedIndex=0&qpvt=annual+deficit&ajaxhist=0
While - post stimulus - we have been reducing our annual deficit via massive growth for 80+ months and the Republican cuts ... we still lose about 600B a year
Sorry but there is not shock to the budget from 10-20B
think about 100+Billion of hurricane relief - that may grow to 200B
sorry but no such bump or consideration is on the table
(and the amount you talk about is ONLY the CSR the rest is inside the budget no different than Defense. The amount is about 7-8 B a year based on the work of Alexander and Murray to legislate that line item)
Sure. The Feds never screw the little guy. Puhleeeeeeese!
IL
That weave does not exist ....
All non trust money (highway - social - medicare - ?) goes into ONE pot
Grassley - a man I seldom agree with - once had massive dignity and respect amongst both parties
Watch him these days and you will see he has become hyper partisan and not one worthy of praise
it is a shame
we will continue to disagree
how do consumers defend themselves without regulation against the five or so massive banks that control our data - loans - and savings
I think we should worry about us and not that Banks need to hire a few more workers
again - in the last 12 months - 100% under Dodd Frank - Banks and other Financial institutions have RECORD PROFITS
seems to me their complaining is not about making money but about control - the control they want over us with no one regulating them
Re community banks (lets define as any bank not in the top 50) they need relief --- but that is 100% different than including the monsters that have a strangle hold on the banking industry... they should undergo more audits and need more capital .... level the playing field so that indeed community based lenders and bankers have a fighting chance
Small lenders are very apprehensive about disruptions to the marketplace, so the idea of winding down or dismantling Fannie and Freddie amounts to what we think is a huge disruption potentially, so we would have a lot of difficulty getting on board with that,” said Glen Corso, executive director at the Community Mortgage Lenders of America.
(ABOVE ARE OUR STRONGEST FRIENDS)
There has also been ongoing pressure from hedge funds which bought stock in Fannie and Freddie after they were seized by the government. They would stand to gain significantly if the GSEs were spun out from conservatorship and returned to private control. Hedge funds appear to have successfully lobbied some senators on the issue, making striking a deal difficult if Fannie and Freddie are eliminated.
“We see the shifted … stance toward a continued GSE role and some concessions to shareholders as potentially reducing or removing barriers to reform,” wrote Charles Gabriel, an analyst at Capital Alpha Partners.
Yes - where is the administration?
Appears - to me - clearer now
Hensarling and House want us dead
Senate would have us private - continued and playing a role
And the Administration - deafening silence
(hope in next 50 posts of catch up - to find out more)
GREAT LINK
Have you ever stopped to think that Obama has woven the GSE dividends into his (non) budget to the point that if you just stopped the NWS it would cause some major issues? Maybe Trump hasn't stopped it yet because they're trying to find the best solution so as not to shock the budget?
This is why fixing healthcare and the tax code is important to get done first. But the obstructionist Dems are delaying EVERYTHING just because they're being difficult.
Agreed y would they screw employees of their investments as well as the the moms and pops.....we golden
Just retweet most of them.... will comment tomorrow - time for bed thanks for letting us know LW! I haven't been able to check boards or tweets much lately. Have a great night!
Very Important: If you have not replied to Jeb Hensarling's tweet, please do.
Give him a piece of your mind like so many have already done. Also re-tweet & like as many or all other replies to generate awareness and shine the light on this TBTF Bank stooge. Please add your voice and make it known to him that his load of nonsense is disgusting.
I'm just gettin' warmed up:
GSEs: Now, Not Later
Please email your senators and representatives altering them to be aware of a Jumpstart 2, that may be added to upcoming bills, by Corker, Warner and Hensarling.
I sent messages earlier today. No more favors for the big banks.
"its always darker before bright. So many good signs, ignore the noise of ppl leaving. You shall know the truth and truth will set you free"
I've been hearing that since 2009, and its getting a bit tired and old.
Hensarling is getting trashed on twitter
It’s way past time to protect taxpayers and prevent a repeat of the biggest bailout in our history. https://t.co/YlknVVHu43
— Archive: Rep. Jeb Hensarling (@RepHensarling) December 8, 2017
Yep, no one has challenged them. If we can't even stop the NWS, good luck stopping the warrants.
its always darker before bright. So many good signs, ignore the noise of ppl leaving. You shall know the truth and truth will set you free.
I guess Ackman will be busy in Jan..
*ACKMAN LIKELY TO FACE TRIAL FOR ALLERGAN INSIDER-TRADING CLAIMS
— zach (@zbiotech) December 8, 2017
*JUDGE TENTATIVELY DENIES ACKMAN, VALEANT BID TO END LAWSUIT$VRX
we are ALL weary & rightfully so ... STAY the COURSE !
I also am not here to scare. But my opinion may come across that way. I think at this point, it is clear the companies survive. I have no idea what the common price or pref will be but would rather not see jumpstart 2.0 in the next 2 wks...
Not a recco
Hogwash from Washington commons are golden!
Investors Unite latest
Hensarlings Nasty and Counterproductive Twist on Jumpstart
https://t.e2ma.net/message/zoa3v/3jpmqz
there is the man with the plan, what's next?
I own common. At about a 70/30 split between p and c. Posting information like I posted earlier and will copy again below is relevant to common shareholders as well. I could care less about scaring a few ihub people to switch to preferred. It would do nothing for the price.
“There are two classes of equity in both companies: preferred and common. Bloomberg and Politico reported this week that the current proposals would boost the preferred shares, but leave the common ones out. “
Trend: Bad news-pps same, Good news-pps down 10%
It happens only in GSE. Can you figure out why?
Seemingly all this news looks great for us. On the other hand, the share price keeps taking hit after hit after hit. So hard to stay positive but I've been here nearly 5 years so I can stick it out longer. Just growing SO ANXIOUS.
Naturally, I am more positive on pref over common otherwise I would own common. Also naturally, I will appear biased because I am.(because I own one type based on my investment rationale.) My rationale may be wrong, though....
I own one class because I think it has a better risk adjusted rate of return vs the other shares.
Illegal per who? Besides one poster who says he is one of 3 people that have a letter from the SEC but refuses to share it.
I have. I cannot find one court ruling that tossed em. I have searched high and low.
Not a recco
Hensarling jumped our bones with a new start to wind them down. screwed by the chicken farmer once again
We need jumpstart to expire and not be extended.
we need to survive 10 more days and then we go to $5 pps
Thanks Joseph -- Appreciate you answering my question. Have a great weekend and Good Luck.
ZZ Fannie
* * $FNMA Video Chart 12-08-17 * *
Link to Video - click here to watch the technical chart video
Haha! Next Friday again.
FHA Unveils New Loan Limits for 2018
By George Brooks ... gbrooks@imfpubs.com
The FHA late this week announced new loan limits for 2018, with most areas of the country looking at higher ceilings next year. The higher mortgage amounts are effective for FHA case numbers assigned on or after Jan. 1, 2018.
The FHA ceiling will rise to $679,650 from $636,150 and the floor will increase to $294,515 from $275,665. The floor is set at 65 percent of the national conforming loan limit of $453,100, which applies to areas where 115 percent of the median home price is less than the floor limit.
Any areas where the loan limit exceeds the “floor” are deemed high-cost. Federal law requires FHA to set its maximum loan-limit ceiling for high-cost areas at 150 percent of the national conforming limit.
In addition, the national mortgage limit for Home Equity Conversion Mortgage loans will increase to $679,650 from $636,150. FHA regulations currently do not allow HECM loan limits to vary by metropolitan statistical area or county.
Hensarling is Ready to Deal on GSE Reform, but Will it Happen ?
Friday Dec 8,2017 ... By Paul Muolo ... pmuolo@imfpubs.com
It appears that Congressional reform of the housing-finance system – and final resolution of Fannie Mae and Freddie Mac – is back on track with a key piece of good news for MBS investors: an explicit federal guarantee on conventional product looks likely.
But now comes the hard part: the details and working out a compromise among elected officials and the industries that will be affected by a new world order for mortgage finance.
Late this week, a key piece to the reform puzzle fell into place when House Financial Services Committee Chairman Jeb Hensarling, R-TX, said publicly he’s ready to cut a deal on reform and is now open to the idea of a broader role for Ginnie Mae, possibly as a successor of sorts for Fannie and Freddie.
For years, as chairman of the HFSC, Hensarling has been a fierce opponent of any type of government guarantee on MBS backed by conventional mortgages, maintaining that the private sector should bear the burden of all risk – and that the two government-sponsored enterprises should be liquidated and their charters retired.
What We’re Hearing: President Trump: Wells Fargo Will be Fined President Trump ?
Time to Exempt Fannie and Freddie from the GOP Tax Overhaul ?
Who Lost the GSEs ?
Hensarling’s Change of Heart, Why ?
CMLA Names Former Freddie Official Acting Director
December 8, 2017 ... By Paul Muolo ... pmuolo@imfpubs.com
Wells Fargo, the nation’s largest home lender and servicer, will not escape the wrath of the Consumer Financial Protection Bureau for (allegedly) over charging consumers for rate-lock extensions. Who says so? President Trump, that’s who. In a tweet that came mid-morning Friday, Trump tweeted out: “Fines and penalties against Wells Fargo Bank for their bad acts against customers will not be dropped…”
Trump’s declaration was in reaction to a Reuters’ story that said the CFPB might go easy on Wells. (The news organization quoted anonymous sources.) The megabank had come to terms with the agency prior to the recent departure of Director Richard Cordray…
Now comes the big question: Why is the president of the United States weighing in on a bank regulatory issue? Then again, it’s Donald Trump. Mortgage ramifications? Stay tuned…
If the GOP tax overhaul plan becomes law with a 20 percent corporate tax rate, Fannie Mae and Freddie Mac will need to fork over to Treasury an estimated $13 billion to $19 billion (depending on the new tax rate) to cover deferred tax assets currently on their balance sheets. The estimate, which comes from Keefe, Bruyette & Woods, has been out there for months. But now it’s a little scarier for the simple reason that in 23 days, Fannie and Freddie will see their capital buffer fall to zero from $600 million currently…
Of course, tax writers working on the final details of the overhaul could create a legislative “carve out,” exempting Fannie and Freddie specifically from the DTA hit. But as one lobbyist told us, that’s highly unlikely at this point…
If you’re keeping score, the GOP is writing a tax bill – without Democratic input – that will result in the GSEs taking another draw from Treasury next year. The only way for Fannie and Freddie to avoid this is if they can earn that much in the fourth quarter. At this point, that’s almost impossible, though the two did – combined – earn $7.7 billion in the third quarter. However, a nice chunk of that represents a $5.5 billion subprime-related settlement that Royal Bank of Scotland paid to the GSEs this summer…
It’s quite possible that Democrats will blame the GOP for this looming GSE bailout. But will the voters? First, you’ll have to explain to them what a deferred tax asset is…
House Financial Services Committee Chairman Rep. Jeb Hensarling, R-TX, wants housing-finance reform as part of his legacy when he retires from Congress next year, so much so that he finally caved (this week) on the concept of maintaining a federal guarantee on certain parts of the conventional market. At least that’s how his change in attitude was explained to IMFnews…
Someone else who would like to see GSE/housing finance become a reality before he retires (late next year) is David Stevens, president and CEO of the Mortgage Bankers Association…
Prospects for housing finance reform ‘brighten’ and may favor shareholders
Published: Dec 8, 2017 12:55 p.m. ET
Bipartisan consensus on one of the thorniest issues left unfinished from the financial crisis ?
Fannie Mae's current headquarters on Wisconsin Ave. in Washington D.C. The agency plans to vacate this building by 2018.
By ANDREA RIQUIER
Prospects for an overhaul of the housing finance system are “brighter” as fresh legislation advances through Congress, one analyst believes.
Senators Bob Corker and Mark Warner are working on a bill to decide the fates of Fannie Mae and Freddie Mac, the two government-sponsored enterprises still lingering in a financial-crisis-era limbo. That question has taken on some urgency in recent weeks as the time nears when the two companies no longer have any capital cushions, as directed by Congress, yet will likely need to tap taxpayer dollars if proposed tax law changes slash the value of tax credits they hold on their balance sheets.
There are still big questions to be determined, and Congress has its hands full with other financial services priorities, wrote Capital Alpha’s Charles Gabriel. Still, he said, some of the broad outlines of the plan that’s emerged seem to be gaining traction and garnering compromise.
“Specifically, we see the shifted Corker-Warner stance toward a continued GSE role and some concessions to shareholders as potentially reducing or removing barriers to reform,” Gabriel wrote late Thursday. “And we thus expect it to importantly change the threshold debate.”
Among the biggest shifts: House Financial Services Committee Chairman Jeb Hensarling’s acknowledgment that he recognizes the political necessity of keeping some form of government guarantee for mortgages.
“Although I hate to have the federal government in the position of deciding which mortgages can be securitized, with $5.7 trillion in guarantees, decide it must,” Hensarling said Wednesday.
The broad outlines of the Corker-Warner plan suggest that Fannie FNMA, -2.96% and Freddie FMCC, -3.55% ’s investment portfolios would be wound down, and future mortgages would be explicitly guaranteed by a government agency led by Ginnie Mae, the agency that currently securitizes mortgages from the Federal Housing Administration and Veterans Administration, with a wrap from a federal mortgage insurance agency that would be created later.
But as Gabriel notes, compromise on the contours of the future housing finance system may be easy compared to untangling what’s owed to shareholders.
Between the 2008 crisis bailout and a 2012 amendment to that agreement, which siphoned the enterprises’ profits to Treasury, shareholders have been nearly wiped out, and years of fighting the government in court have done little to settle the matter.
There are two classes of equity in both companies: preferred and common. Bloomberg and Politico reported this week that the current proposals would boost the preferred shares, but leave the common ones out.
“This messaging seemed puzzling in that it might devalue the government’s own 79.9% equity stake in the two Enterprises,” Gabriel wrote. “But, as some observe, it might be attractive to Senator Corker in settling scores with hedge funds and shareholder groups with whom he has tangled for several years.”
On Thursday, shares of the preferred stocks FNMAS, -4.27% FMCKJ, -4.08% surged while the common class of shares stumbled.
There are still many open questions and constituencies to please before reform is finalized. Earlier attempts at overhauls, including one from Corker and Warner, failed. Even despite the recent momentum, Gabriel thinks there’s only a 35% change of comprehensive housing finance reform next year.
Still, as he wrote, “We think Fannie-Freddie investors may finally be on the verge of seeming less as outliers, which could attract additional capital, from heretofore fence-sitting institutional firms, as well. As for the common vs preferred struggle, we’ll leave it to others to see the future, though we doubt a negative verdict with regard to the former might be that quick or easy to assume.
"Conservatorism IS the new counter-culture."
-Sure looks that way...Steven likes it:
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