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Ok let's just come out and say it. In June 2024 the new Freddie Mac buying the home equity loans aka the illiquid market also known as secondary mortgages is about to see a large Freddie Mac sized jump in liquidity to buy these off banks to get them giving them out again on the condition that Freddie Mac also bought the original mortgage loan. After that Freddie will securitize these "secondary mortgages" and sell them off to investors. What to make of that? 1. Fannie will follow but since the market is small and illquid to begin so Freddie being the smaller sister company makes sense. But when they begin next month with Freddie Mac (est date) Fannie will follow and there will be more revenue to both make faster MBS out of the first mortgages purchased off banks lenders and some non-bank lenders and then also on the secondary market with all of these securities making the re-capitalization goal achieved much sooner than originally thought because selling the securities of the second half bundled loans will reap more profits than expected with only using the first level origination of mortgages to buy - securitize - profit.. Just a thing to watch for.
Not sure of JPM, but Vanguard stopped all OTC transactions except selling after the time of the cutoff date. I couldn’t buy back my common as I had sold with intention of buying back and missed getting back in before the cutoff date. Still own preferred there though.
No SPS LP will ever be cancelled or written off.
Mr. Pro Se is repeating the mantra from his colleague Bryndon Fisher, the cattle market-style negotiator (and we will throw in some goats!).
The SPS LP corresponding to the draws from UST (1:1 increase) has been paid off through December 2013 in Freddie Mac and December 2014 in Fannie Mae, with the assessments sent to UST under the guise of dividends, as per the U.S. Code 4614(e) and the supplemental CFR 1237.12.
With respect to Trump's SPS LP increased for free initiated in December 2017 jointly with Mel Watt, it isn't necessary to do anything because, although illegally (Financial Statement fraud), they don't appear on the Balance Sheet, which bodes well for the assertion that, under the law, they are officially declared "a joke", with no intention to ever stay: a capital distribution #1 restricted, they have been used solely to hold the Common Equity in escrow, which upholds the FHFA-C's Rehab power (restore soundness and solvency).
Everything, under an authority of FHFA to "take any action authorized by this section,....", such as a Separate Account plan, and the opportunity it spotted to beat up the shareholders of private corporations, just because it isn't included "to act in the best interests of the shareholders" in its mandate, typical in a Conservatorship to turn everything around, which was translated into "actions against the shareholders". Good for you!
It isn't the same. Primarily, with your stance, FnF would have to pay Income Tax on that amount. Secondly, you are asking for debt forgiveness, because you don't tell us how the SPS LP has been repaid. You just see that the amount sent to UST is higher than the principal of the SPS and, done! The UST has been repaid as if by magic.
You are attempting to shelter all the crooked litigants that have covered up many statutory provisions, beginning with the Restriction on Capital Distributions and the original UST backup of the enterprises at rates similar to Treasuries in exchange for their old Public Mission related to secondary market operations -MBSs- (no subsidized guarantee fee anymore), never Special Assistance functions that were kept by Ginnie Mae when it was spun off from Fannie Mae in its Privatization in 1968.
The crooked litigants that, in turn, are instrumentalities of the hedge funds.
The $4.8B in punitive damages against those peddling the government theft story, will clear things up.
Curiously enough, after multiple felonies have been committed deliberately, the Fanniegate attorneys are accused of sheltering the fraudsters, cover-ups, become instrumentalities of others, and also accused of, as only defense strategy, rely on judges and social media lobbyists to change the fate, which is exactly what the Trump attorneys are accused of too, in the Florida case, related to taking Agency confidential documents with him at the end of his tenure.
They are cut from the same pattern.
By the way, this looks like a response addressed to you.
And, the key: the FHFA-C's Incidental Power wraps all up: "Any action", such as a Separate Account plan.@FSCDems @FinancialCmte
— Conservatives against Trump (@CarlosVignote) May 22, 2024
The Net Worth dividend was a Common Equity Sweep.
The Comprehensive Income is swept (Net Income + OCI).
Which are accumulated in the Accumulated Retained Earnings account and the AOCI, respectively.
Both accounts are Common Equity. It belongs exclusively to the common shareholders.
This is why the NWS dividend was a Common Equity Sweep. Just like today's NWS 2.0 (SPS LP increases in the same amount as the Comprehensive Income in the period or Net Worth increase. Then, on the Balance Sheet there is an offset that makes the SPS substitute the Common Equity in the Net Worth. Hence, the same Common Equity is swept as seen before. Although, due to ST's Financial Statement fraud, this effect is being concealed to peddle the lie: "FnF continue to build capital through Retained Earnings" by Bill Ackman, his clerk Bradford and the very Sandra Thompson in Congress).
The SPS only has a legal claim on its stated value (Liquidation Preference).
If you want to say that today's Net Worth is below the value of the SPS LP outstanding, say it, but don't mess around with what was swept to UST.
Guido/Pagliara, scheming all day! Sandra Thompson to the FDIC, etc.
BOOM. Dividends are recorded as Changes in Equity.
As per the definition of this financial concept: a distribution of Earnings and Retained Earnings is Common Equity for the CET1 that has to meet the capital requirements.
They aren't interest payments (expenses result of operations) without restrictions.
Freddie Mac during the NWS dividend.
This is why there are Payout ratios (percentage of Net Income that can be paid out) that limit the amount that can be distributed to the Equity holders as dividend, that is an addition to the overall restriction when a financial company is undercapitalized.
Capital Rule ERCF:
We are talking about dividend payments that have been paid out when there is Accumulated Deficit Retained Earnings account, evidence in itself of Separate Account, as you can't distribute what you don't have, which is different from using this account to charge the annual losses, when it can have a negative balance (deficit).
They were assessments sent to UST in the form of capital distributions. No actual dividend was ever paid by any stretch of the imagination.
FHFA's Wall Street law firm: "Dividend obligation" in an attempt to turn dividends into interest payments. That doesn't exist in this world.
Restricted and unavailable funds for distribution.
Cumulative dividend as per the original rate similar to UST (0.5% spread) in the Charter Act: it's netted out with the interests on the $152B owed to FnF.
Fight, Fight, Fight against this
Immoral, Unethical and Corrupt
Conservatorship of Fannie Mae and Freddie Mac
if true that jpm only will allow you to sell but not buy, it is very very good news. they want people to just sell and market maker buys it back for the special interest or warren buffet or government whoever.
your authenticty is doubtful, you just created this account with very first post but showing us that you know everything posted here and many of the contributors. we have seen many like you. i am not interested in an explanation on why this is your first post, there are lot of intelligent ones here to figure it out
Hi. It looks like a dipshit has created a sock account today and posting nonsense statements...
Need to try harder idiot.
yes - it is not the usual LV --- it is a borrowed word to have a place to increase the GOV investment as th # of SR PFD shares never changes and they do not trade. So The GOV needed a "counter" and they call it LV
And the Senior Preferred --- are not typical Preferred as they can put the money invested onto F and F at will (thus the investment is also an obligation for F and F that weighs down net real capital)
This is a mess and we are being taken. And for sure the terminology from Wall Street does not fit correctly to this unique steal
"GOV can do that say the full LP is due as an obligation"
Then it's not a liquidation preference. The LP should only matter or become due if the GSEs are being liquidated, which I find highly unlikely. The SPS LP would have the highest priority and be paid first from the liquidated equity.
The REAL problem is the dividends based on the LP amount, which could result in a sweep of all or a vast majority of the future income. It will be the greatest return on investment in the history of investments. Nationalization without ownership. The gift that keeps on giving.
Hi. It looks like JPM Chase has just stopped allowing clients to buy FNMA/FMCC. I know Robinhood and Vanguard did that a couple years ago. These bans add downward pressure to the stocks. Does anyone know what causes these decisions?
Also, thanks to everyone sharing information and views and also those people doing something to spread awareness of FNMA/FMCC- Navycmdr, Guido, Bradford, Ace Trader, KThompson, Wise Man, etc.. The information and open debate is really helpful. I have a couple other questions if anyone on the board has answers -
1. At what point do short traders have to put aside money to pay their share of the Lamberth ruling? FNMA already put it on their annual report, but I wonder if/when others have to do it and how much it would be.
2. What happens if the government is found to have actually nationalized FnF? Wouldn't the $8 trillion FnF debt have to show up on the federal debt and cause the US gov credit rating to go down and interest rates to go up? Are fed bondholders also getting a raw deal by having this debt kept off the fed books?
Thanks again.
Agree with what you say.
And nothing that we have seen says that, it will change. GS will continue to control the govt froom 24 to 28 too.. GS and the govt problems are much biggerf than GSE.. So if someone continues to think that Trump will realize the wrong hire from last time and fix it this time, its just a hope-aid.. No one knows
GS is too powerful and can do anything.. If GS can do a sizeable donation to Trump during election campaign, he can very well be aligned.. Given his financial troubls, its very easy to buy his silence next 4 years (if he is elected)
FANATICAL
if you disagree with a certain philosophy - you are a communist - idiot - hit and run - duplicate - brainwashed
My sense is the same arguments and attitudes go on in CONGRESS and that is one of the reasons they do nothing about F and F
Are they worse then BIG AG - BIG OIL - BIG TECH
I would argue we have way too much power in way too few companies -- in key industries - and that includes the TBTF banks - but I would not single them out from the rest of the GRIP that with the SCOTUS decision on election funding is hurting our democracy big time
Where is Teddy R when we need him
The GOV can make EXPLICIT gurantees by making us a privately held but regulated utility
Then the GOV can make the same offer (with all instructions - requirements - restrictions) to the TBTF banks who would never say yes
Win Win
I thought the NWS took EARNINGS - PROFIT as made
I do not remember it going back and for example killing common and JPS - which also are equity ?
The actions could not kill SP without killing JPS and common --- at least I do not think so
officially ends the Financial Crisis
hhmm- COVID was in between then and now
what financial crisis is there to finish
Did you read the report that DJT endorsed as his policy?
I provided parts online and the link
That is not an order to free F and F
To believe that DJT said free them and Mnuchin (for his secret reasons) was able to stall
Describe say 3 other such cases of DJT said I want and was stopped by his own cabinet (USA issues not foreign issues)
that is an argument I like but something very similar to that has lost in court
I just do math and simply said two things at once - both correct IMO
1. GOV can SAY and act to kill the SP obligation - measured by the LP value -- in return for 300B sent to them . They simply do it and to me it is fair as a tax payer
2. GOV can invoke GAAP and say all of that is dividend and none is principal. It sucks and we are being robbed and we are being treated worse then any other company "they helped". But per HERA and agreements agreed to and GAAP ---- GOV can do that say the full LP is due as an obligation and we are in court for another 15 years
#2 is not fair and is not what I advocate. I do think its fair to say they would have a case to argue in court for years
Sherrod Brown is nothing but a blowhard speaking with forked tongue. In other words, the typical politician!
You say I am wrong but can't back your position. The government has been OVERPAID. It has ZERO EQUITY in the corporations.
I have held common shares since before conservatorship. Bought my preferreds after. If you are with KT and Bradford trying to give 95% of the corporations to the government, we're not on the same boat.
Great if she goes
But who will be Fhfa replacement?
Maybe no one because election is coming
And who will confirm another dem head?
I feel sorry for the other agency
lol
That’s how it should work
But Amerrika’s problem is
The Goldman and other tbtf banksters are in control and above all government authorities now
This is why no one questions them or treasury
They do whatever they want
What happened to jfk
Goober, why are you so bitter and hostile? Chances are Ive been a holder longer than 90% of the people here. I just dont post as much nowadays. Relax, friend. We are all on the same boat.
Just saying I am wrong without backing it up is a hit-and-run. You appear to be a government stooge.
The government has already taken out all the equity it invested in FnF (and more). It has zero equity left. Whatever equity remains in the corporations belongs to the junior preferreds and commons.
Just to confirm if you held the FNF JPS and Freddie commons, up to the jury verdict date you are locked in for the awards? And going forward if you buy more Fre commons or FNF JPS, those shares will not be a part of the reward pool? I am a buyer as I believe the true reward will be at the Recap and Release ending.
Net Worth is a value. The NWS sweeps all the value ($$) from the GSEs. That includes what gives equity its value. The equity structure does not change. It just means the equity have no value presently.
My backup is my knowledge. I am not going to look up references as I am at my lunch break. I did not expect this to be an argument. If you believe the NWS modifies the equity structure, then thats up to you. Good luck
The TBTF Banks wanted the GSE to fail because that will cover up the bad loans they made which triggered the Financial Crisis. Luckily, like Maiden Lane I, II, and III, the GSE MBS ended up not losing money. AIG had to sell/spinoff their MBS/CDOs but GSE could hold because of being GSEs and eventually benefited from the turn around.
The TBTF banks only wants the FnF book of business if the gov continues to implicitly guarantee them thus giving them GSE attributes. The gov can never do that directly without backlash.
What does net worth mean? What does equity mean?
https://www.investopedia.com/terms/n/networth.asp
https://www.freshbooks.com/hub/accounting/equity-accounting
I repeat: "When the government Net Worth Swept, it also swept out it's own equity out of the corporations.
Treasury equity = $0.
SPS = $0."
What exactly are your arguments to back your position?
Chances are if Trump wants the GSEs released, they will be released. But, he does have advisors and some advisors may have a different viewpoint. My opinion is if Trump wants to be the man who ends the C-ship and the man who officially ends the Financial Crisis Era, he may do it. He can add that to his resume along with Space Force. Space Force has to be one of the most important entities established in modern history and the Dems mocked it when Trump first announced it. Lets see what happens.
The NWS only takes the dollar amount of the company up to its net worth. It does not modify the equity or debt structures.
What Fannie Mae and Freddie Mac insiders don't want you
to know - Both are on launch pad and ready for Lift-Off
I wouldn't trust Mnuchin as far as I could throw him . . .and I have no arms.
Same as Watt . . . filling a chair behind a desk. Of course, she needs a much wider chair than the narrow Watt.
You see what you want to see
Tough to argue or convince
That's fine. It's past history..
I hope they don't make it temporary and ask her to lead both. In that case our brandfordamus hope of GSE reform in this term will be officially dead
She can go. It's not like, she is doing anything useful here. We won't miss a beat
Mnuchin had no intentions of releasing the GSEs, in my opinion, because it was known that the TBTFs wanted the GSEs to fail so they could get the books of business. Trump, in his letter to Paul said he wanted them released. He delegates authority.. He expects his wishes executed and moves on to another topic. Mnuchin made it look as if he was doing something, albeit slowly, and, essentially, wasted four years. I think it was a stall tactic to keep the TBTFs' wishes alive. We all know they could have successfully released during that time of Trump's term. If Trump was at fault, it was for not looking back and making sure Mnuchin did what he wanted.
Cark Ichan suggested Mnuchin to Trump. I think he did so to help him (Ichan) get the government's hands off the GSEs so he could make another fortune. He held some $50M in GSEs at the time at enormously suppressed share prices. Mnuchin screwed Icahn over as well.
THIS NOT A POLITICAL POST. SANDRA THOMPSON IS FANNIE MAE REGULATOR & CONSERVATOR. PLEASE DON'T DELETE.
Director Thompson is listed as #1: https://t.co/ODdMvEQsN1 https://t.co/hdxVnox4gy
— Vern McKinley (@VernMcKinley) May 21, 2024
Or the other side of the argument is
They were able to convince why it's not a good idea and he got convinced..
There is no way they violated a code red order
When the government Net Worth Swept, it also swept out it's own equity out of the corporations.
Treasury equity = $0.
SPS = $0
But at the end of the day, if the president says I need this released. Do you think they would not have worked on it?
Look at it objectively without an excuse hat, R- hat, Trump hat. Just purely based on facts
In your company if your CEO says, this is what I want, do you think it happens or not?
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