Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Deferred tax assets arising from temporary differences between GAAP and tax requirements are deducted from capital to the extent they exceed 10% of common equity. As of March 31, 2024 and December 31, 2023, this resulted in the full deduction of deferred tax assets ($11.5 billion) from our available capital (deficit).

Available capital (deficit) for common equity tier 1 capital also excludes the value of the perpetual, non-cumulative preferred stock ($19.1 billion) as of March 31, 2024 and December 31, 2023.

So not only is there an SP or LP (to me LP is the moving $ value of S) to subtract but GOV accounting does not include a ton of capital -- and then the GOV piles on with the insanely high Capital Requirement

I did get to around 250B ---- and that is me adding the numbers on the page you point out --- not me agreeing with all the machinations

[MoneyRobot]

Those .38- 45 cents days for commons are OVER. hopefully we will never see them again. The funny thing is it was last year. We should have loaded up on FNF. The decline from 18 to 3 was devastating for more who were here (JPS). I think C's went from like 6 to .38 cents.

Those are all memories. And good ones to talk with friends 10 years from now when we all cashed in.

[MoneyRobot]

Someone said at one point a long time ago, the FNF play is not for me (current investors), its for your (our) grandkids. LOL. He wasn't kidding. That may end up being the case as for me.

[MoneyRobot]

I hope you are right on the JPS of being "made whole". I am ready for all this to end. My kids were in grammar school when I first bought in, My oldest since graduated college and is an engineer now working for about a year. The question is will I be a grandfather before the GSE's exit c-ship. LOL

[RickNagra]

Your order will never fill in a million years. Wave as the ship sails.

[MoneyRobot]

Good luck. With buying commons I normally pay ask or just go with the market execution. The JPS is a different story, I GTC limit near bid and sit and wait. It can take weeks for it to fill but, at least I get my price.

[MoneyRobot]

I hold both as well (95%, 5% Commons). My reason for holding commons is that I want to be able to vote at some point. We do not have the luxury of voting or participation now, but hopefully in the future we will. And not that my humble common bag is material enough to sway anything anyways.

[TightCoil]

And both turning GREEEEN!

[TightCoil]

Freddie Volume currently outpacing Fannie Mae

[Donotunderstand]

I do not know all the arguments

I simply added up - all the numbers as laid out by GOV and when one restricts the positive capital one can count - then layers on the SP as negative and then the amount needed to exit per newest regs - I get to over 250 B --- by GOV numbers

Not debating

[Donotunderstand]

Just call the SP/LP paid off and brag on 300B to GOV for 200B to F AND F

and to repeat

at same time

suspend the fees for one year as part of HUGE support for housing market and lower rates

and yes - find a way to attract votes with the 100B available for warrants ---- choose cut the DEBT or middle class housing help - or whatever

A three part PR - that deserves a press conference

Yet - it never happens

[Donotunderstand]

Note - I own common and JPS --- I have no desire to see a conversion

So please do not lump all JPS holders into one anti common group ---- many of us hold them as a potential hedge

[Donotunderstand]

such certainty with anything FHFA and FNMA is wrong - for its certainty - not what it says

I agree that a decision to say the SP/LP dollar amount is paid off - would allow MAX and MAX price per share for the 4B shares the GOV can have via Warrant Exercise. And one can only imagine the HEADLINE of 100B profit by GOV --- combined with my favorite no one agrees with - a one year suspension of fees on mortgages --- no FEES for a year ---- which knocks down mortgage rates THAT WEEK

[RickNagra]

Premarket volume 1 share LOL. What goofball places a trade for 1 share ? Seriously ?

[Freddie bagholder]

no he means only commons have security.

[Donotunderstand]

Please read the entire post - which I repeat - per my READ (not an accountant) - with reductions for what is allowed to be counted - with the requirement to pay off the SP/LP and then the required capital level - my rough math got us to 70B (negative) after SPS and LP) and needing to hit 188 to exit or $258 short of escape velocity - unless someone changes the underlying HUMAN physics

So the reported capital is

82B

but there is an obligation on the SP to erase it

-120B (not sure if this is all the phantom IOUs?)

So Fannie is negative 38 -- but it can not count JPS for 19B and needs to adjust for 12B of deferred tax

So Fannie is negative say 70B --- is that your math?

And then FNMA needs a positive 188B

[Donotunderstand]

commercial crash - same driving factors ?

NINJA loans
Interest only loans
lies and lies by TBTF banks

hhmm
I might suggest the HURT will come from very traditional commercial RE cyclical reasons (pushed harder by the WEB and ability to work from home - pushed by COVID experiment on time and location work shift) . Too many were planned and built at one time ---- and this is the pattern that I have seen for 50 years (A commercial RE version of GREED GREED and FEAR). Best I hear - nothing (but stuff planned 10 years ago with private $) of size is being built in Chicago (over crowding and the 2024 cost to build exploding)

[Donotunderstand]

Context for the CFPB ruling

those in favor - those against - and where the Mortgage Industry and Chamber came out

bluntly - looks like Pay Day Loans was the single biggest loser

Bloomberg articles tend to lean LEFT but but but have a seriousness to them and making every effort to be pro BUSINESS capitalists

https://news.bloomberglaw.com/us-law-week/cfpbs-funding-system-upheld-by-us-supreme-court-in-biden-win

[EternalPatience]

So you don't own commons ?

[Rodney5]

Wise Man, this is a clear precise written statement. The only thing you said and I don’t understand but everything else is spot on.

“ (for the Separate Account plan).”

[Rodney5]

“SPS LP and its corresponding offset, are missing on the Balance Sheets.”

It’s not missing as we have discussed this numerous times on this board. Page 105 Quote: Regulatory Capital Requirements we had positive net worth under GAAP $82 billion. EXCLUDES the stated value of the Senior Preferred Stock $120.8 billion.

Short fall of $243 billion of available capital (deficit) to the total capital requirement.

The company admits a negative net worth. Fannie Mae is owned by the government. And the trillions in liabilities have not been added to the national debt. WHY ??

https://www.fanniemae.com/media/51196/display

[Wise Man]

BOOM. Case closed. Evidence of collusion between the parties.

This is the reason why the appeal in the Wazee case that challenges today's SPS LP increased for free, was scrapped, and why this SPS LP and its corresponding offset, are missing on the Balance Sheets.
They don't want you to see that it UNCOVERS the Separate Account plan with the prior dividend payments to UST (both the 10% and the NWS dividends), if you didn't see it back then (exceptions to the Restriction on Capital Distributions: reduce the SPS -U.S. Code 4614(c)- and recapitalization outside their Balance Sheets -CFR 1237.12-, that is, an External Position, Bundesbank-style with the ECB's Payment System Target 2. Both share the same advisor: Goldman Sachs).

UNSOPHISTICATED ATTYS AIM TO TURN #FANNIEGATE INTO THE 1989 FHLB'S BAILOUT, ENTITLED "SEPARATE ACCT"
With the assessments,they paid the $300mll annuity (interests) on the 40-yr RefCorp obligation +$0 (loser) in zero-coupon Ts (its face value repays the $30B principal at maturity) pic.twitter.com/LrbOm3EbBY

— Conservatives against Trump (@CarlosVignote) May 29, 2024

Plus other examples, like the Wall St law firm representing the @FHFA in court and the plaintiffs +fmr $FNMA CEO(both in the Lamberth Ct): "Dividend obligation"👇,in an attempt to turn the div payments into interest payments (an expense result of operations. Without restrictions) pic.twitter.com/EIu6ZVVCN9

— Conservatives against Trump (@CarlosVignote) May 29, 2024

[Wise Man]

Don't pretend that the JPS aren't affected by dividend suspension.
Fair Value chart in $FNMAS under a normal conservatorship, which is what the Separate Account plan is about (kept secret):


Or unaffected by the financial condition of FnF, with $325B SPS LP outstanding and only $132B Net Worth or Equity, besides an adjusted $402B core capital shortfall over Leverage capital requirement as of end of March, 2024.
You should learn what the FHFA-C's Rehab power is about: Put (restore) FnF in a sound and solvent condition. Related to the financial condition (Balance Sheets).
Today's financial condition wipes out the JPS. Get it now?
It's not about "safe and sound operations", as peddled by all the FHFA Directors and some politicians as a slogan. That's captured in a different place, in the FHFA-R's duty: "Ensure that FnF operate in a safe and sound manner...." and always omitting what comes up next: ".... including maintenance of adequate capital and internal controls." Adequately Capitalized.
All roads lead to Capital. Balance Sheet. The financial condition as seen in the ERCF tables, which show a $271B core capital shortfall over Leverage ratio requirement together. Adding the offset with $132B reduction of Retained Earnings account, corresponding to the $132B SPS LP increased for free absent from the Balance Sheet, the outcome is an adjusted $402B core capital shortfall.


Quit playing with words: a security that has "security". You mistake the legal claim for the fair value they should be trading at ($9 with 17 years more to resume the dividend payments in FNMAS. But, as every quarter there is 17 years remaining due to the ongoing Common Equity Sweep, that is, there is always a combined $402B core capital shortfall + 25% of the Prescribed Capital Buffer -Table 8: Payout ratio-, today's $4.5-$5 is a fair value)
The JPS get $0 in an Equity restructuring today, due to the financial condition of FnF, and without unveiling the Separate Account plan.

Playing with words like the FHFA in 2011: "Completion of RefCorp obligation" referred to "an obligation to pay interests", so the principal of the obligation RefCorp doesn't have to be paid off.
It was the RefCorp obligation the one that only paid interests.
The FHLBs had to pay both interests and the principal.


Or like Timothy Howard that wanted to obliterate the Minimum Capital Level (Now known as Leverage ratio) so only the Risk-Based capital requirement prevails, using the trick that the latter is written as "minimum capital requirement", with the objective to peddle the slogan "bank-like capital requirement".
This is because he can't say the same with the Leverage ratio.

[tm3141]

why are you always post at late night US time, are you located somewhere else

[Wise Man]

Just so you know, the draws from UST, 1:1 SPS, were $191B, not the $193B that appears on the Balance Sheet, as it includes the initial $1B worth of SPS issued for free (1 million SPS at $1,000 each) out of the blue in each enterprise, that, not only aimed at reducing the Core Capital in the same amount, through the offset when stocks are issued/increased for free (Missing with today's SPS. A fraud), and justify the conservatorship for Critically Undercapitalized enterprises,


A clear breach of the FHFA-C's Rehab power (soundness).
But also, it paved the way for the plan to skip the December 31, 2009 deadline on the authority of UST to purchase obligations of FnF at up to infinite rate (for the Separate Account plan).


The SPS LP is increased each time that FnF tap the UST for funds. No new SPS was issued. Then, no purchase of stocks took place and the deadline was skipped (Securities Law violation, as the stocks need to be issued, purchased and dated).
The original UST backup at rates similar to Treasuries prevails, complying also with the Fee Limitation of the UST as part of the Charter dynamics, which strikes the initial $1B gifted SPS for a second time.

that writedown really would increase CET1/Tier 1/core capital by $193B.

[TightCoil]

Come On, Fannie Mae
Go, Freddie Mac

Be the Greeen Muneee Masheens you is

[bradford86]

Security!

(Security analysis)

Aka the jps have security. Commons? Not if spspa is monetized

[bradford86]

Good luck.

[Wingsjr]

Hope so, I have a 60,000 shr buy order for .99. This fake case in NY may give us a great buying opportunity.

[EternalPatience]

Drip drip drip back to dollar land?

[ron_66271]

This Post is Also Important to F&F.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174509702

Please see the the responded to post for the outside commentary (link).

Yes this is regarding F&F.



Ron

[Patswil]

All of those pfd stock had elevated price and albeit weak Volume

[Guido2]

Agree. Good volume on FMCKJ. More than quadrupled daily average. FNMAT 12 times daily average.

[Patswil]

Yahoo

[MRJ25]

FNMAS is taking off. Commons will follow soon.

Something is up!

[Bostonsesco]

Them even being in conservatorship is punitive at this point!

[NeoSunTzu]

An excellent post indeed! I like the way you and DaJester think, others too, but you both in particular.

Degrees in Rhetoric

This is remarkably descriptive of much of Amercia's political, legal, and business environment - anything public facing.

Other than being a T hater something tells me under different circumstances I would be much more amenable to CarlosV and his views. I think he has good industry knowledge, but this whole fiasco not only creates strange bedfellows but many unearned enemies and quite a few twisted incentives.

[RickNagra]

Crappy day.

[imbellish]

One of the special things about foreign views on US laws is that it forces you to look from the outside in. It's so remarkably open and fundamentally different than parliamentarians that one is forced to piece it all letter by letter. Meanwhile Wall Street guys that went to Columbia law school and such in the 80's got degrees in Rhetoric. The incentive for analysis is different - our litigators are more focused on their own careers - much like activists - than getting the details right. Exactly because they don't have to - as long as it brings clients to the firm and they can maintain an air of sophistication.

See today, earlier, "US Treasury isn't a charity" as if this were a elementary school playground where we put words in each other's mouths.

We really should bring ad hominem back for dealing with useful idiots.

I like your post and agree with the sentiment.

[TightCoil]

You is catchin' on

[Sammy boy]

Looking for a HUGE rally today, who else is ready to launch? Let’s hear ya Patriots, don’t let WB gobble up all these cheapies!

Let’s go TEAM !

Give me some love boys!

[imbellish]

Preferred are accruing 39% IRR to 2028

[The Man With No Name]

What exactly do you contribute here?

****crickets****

My advice to you is to buy more commons. Hand over fist.

[Boat Shoes From Yahoo]

Does the “Secret Plan” transfer or continue if DTJ becomes President?
(Asking for a friend)

[FOFreddie]

Thanks Viking61 - any thoughts on why the JPS is generally trading up? Just DJT odds?

[NeoSunTzu]

If he somehow ends up being right we are all in for a nice pay day ... anything is possible ... it's just frustrating dealing with the reality, the black box, and the political obfuscation - which is plenty without trying to deal with all his messy communication and 🤡💩 emoji replies ... anyway, not sure if you saw my earlier more intelligible and deferential comment on the Separate Plan but here it is ...
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174503977

[nagoya1]

I agree, just like the GSE shareholders were put out to dry, lots of experience is needed with bikini drying.
FNMA

[FOFreddie]

Thanks No Name - maybe realmellon777 has a perspective? It seems like you have some restructuring experience regarding your undergarments after spending a day at the beach? Preferred Certs usually require a supermajority vote to restructure?

Sage advice from No Name

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174489713

[imbellish]

I'm just being cheeky

[NeoSunTzu]

I have no idea what that means, but yeah, sure