Fannie Mae-No Politics (FNMA)

[jcromeenes]

Well, this is rather ominous.... "Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question."

[kthomp19]

they'll be excited to get sued by common shareholders again

Sued for what? Common shares have no legal protection against being diluted into oblivion.

[WAM2]

Don’t forget that the government will most likely exercise the warrants. Common shares! They make several hundred billion of the commons are above $20. The government will never let that much money go!

[FreeFNMA]

yup, preferreds should explode tomorrow. I still think commons will be 10-15 a share after everthing is said and done

[streamer04]

$20,000 per share with the average joe plan.

[Letgoofmyfannie]

Senate's Average Joe Plan Rewards Preferred Shareholders

Looks as if the AJP has sold out the Common shareholders; I've been reading for weeks on this board about how many senators are "on board" with this Average Joe Plan, and now this news tonight:

"Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said."

[atlanta42]

Whatever we already been done prepared for that under moelis

[FreeFNMA]

Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question. Investors in the companies include several prominent hedge funds.

[kip128932156]

I have a feeling they will exercise warrants. That will be not good for common.

[ease2002]

Here it is
https://www.bloomberg.com/news/articles/2017-12-07/lawmakers-plans-to-overhaul-fannie-and-freddie-come-into-focus

[whipstick]

they'll be excited to get sued by common shareholders again

[kip128932156]

https://www.bloomberg.com/news/articles/2017-12-07/lawmakers-plans-to-overhaul-fannie-and-freddie-come-into-focus

[kip128932156]

https://twitter.com/donotlose/status/938581593756782593

[FreeFNMA]

that is all i can find right now......someone tweet commander

[atlanta42]

I read that one - but it doesnt talk about the senate plan that preserves fnf

[FreeFNMA]

https://www.politico.com/story/2017/12/06/hensarling-signals-breakthrough-in-mortgage-reform-208774

[atlanta42]

Someone get a pro subscription quick

[FreeFNMA]

It's happening: Senate #GSE reform proposal preserves Fannie and Freddie (in smaller form) and builds on existing system. #housing Only on @POLITICOPro -->https://www.politicopro.com/financial-services/article/2017/12/fannie-and-freddie-would-live-on-under-senate-proposal-211101 …

[kip128932156]

Anyone have a Politico subscription!!

[cfljmljfl]

Patswill , check date.

[kip128932156]

Wish I knew..

[mike_usa]

What does it mean “some shareholders” ?

[cooler_heads]

Where’s the link to the proposal is the real question.

[TheDon3]

Is the "some shareholders" referring to those who owned stock in the company before conservatorship or pre 2008?

[Letgoofmyfannie]

Do you have to ask?

wow

[yambike]

What does it mean "some" Fannie & Freddie shareholders?

[Jason-H]

What does it mean "Wiped out"?

Sold out?

[kip128932156]

Big news. Love it

You heard it here first-->Some Fannie & Freddie shareholders wiped out when the government took control of the companies eventually could see their stock values return under new Corker-Warner plan. $FNMA $FMCC #mortgage https://t.co/9kksTEEYlF

— Lorraine (@Woellert) December 7, 2017

[eltatriton]

The next two weeks are going to be really interesting. Housing reform chatter has been quickly gaining traction over the past month. Lots of rumors of proposals being floated around Congress, lots of Senators commenting, lots of meetings lately, lots of different people affiliated with different parties with their own agendas and ideas for what they think is right.

Is Watt going to act? With all the anti-GSE views, will Mnuchin cave? The government definitely isn't getting out of housing though. Whatever reform happens, F&F will come out with a much smaller footprint than in the past I'd reckon.

Will be interesting to see how this all plays out in the end. Hensarling was pretty set in stone on winding down F&F. Unless Mnuchin stops looking for a bipartisan approach as he's been saying all along, Hensarling will have a say in housing reform proposal.

[eltatriton]

I'd say Heitkamp is bad for F&F as well as shareholders. She helped Corker and Warner with their GSE bill.

[kip128932156]

A new proposal for overhauling the housing finance system is circulating in the Senate, @Woellert reports politico.pro/2BPlyrh

A new proposal for overhauling the housing finance system is circulating in the Senate, @Woellert reports https://t.co/DFZtamI2Tl

— Zach Warmbrodt (@Zachary) December 6, 2017

[duckdynasty]

Preferreds will.

[Donotunderstand]

In the Senate Banking Committee, mortgage reform is taking longer than expected as lawmakers explore new ideas for rebuilding Fannie and Freddie, Sen. Heidi Heitkamp (D-N.D.) said.


Heitkamp's position on F and F ? and us ?

I do not know

I do recall her position on many financial items and its left of middle and solid logic

[navycmdr]

Hensarling Signals Breakthrough in Mortgage Reform

https://www.politico.com/story/2017/12/06/hensarling-signals-breakthrough-in-mortgage-reform-208774

[Donotunderstand]

Does Franken have anything key to do with F and F in a negative way for equity? Or do you simply not like his jokes?

[Clutch29]

Can I just say I hate that Mo-Fo. Hes obviously bias toward FnF. Dont know why

[Clutch29]

Muzz read newz
I really at this point have no doubts now.

mortgage reform

By LORRAINE WOELLERT

 

12/06/2017 03:34 PM EST

House Financial Services Chairman Jeb Hensarling (R-Texas) said his comprehensive mortgage reform bill, the Path Act, is unlikely to become law and that he has begun reaching out to Democrats and others to begin work on bipartisan legislation.

“While I personally have not changed my principles or my mind, and I still believe the best path forward is the Path Act, I do not see the Path Act’s passage likely,” Hensarling said. “I stand ready to negotiate with an open mind.”

Story Continued Below

The statement is a breakthrough in mortgage reform, which has languished since the 2008 housing collapse in part because of Hensarling’s insistence that the government exit the business of guaranteeing mortgage-backed securities.

Hensarling said it is politically inevitable that any reform package will include a government guarantee of mortgage bonds like those issued by Fannie Mae and Freddie Mac, the government-backed enterprises that were bailed out after the housing collapse. The companies are currently wards of the state, devoid of capital and reliant on a $258 billion taxpayer lifeline they might need to tap as early as next year.

"I don’t want a government guarantee, I don’t think we need a government affordable housing program but in surveying the political landscape I know they will exist in any bipartisan effort," Hensarling told POLITICO. "At the end of the day I'm here to make progress."

Speaking at a conference sponsored by the National Association of Realtors and S&P Global, Hensarling endorsed a plan from the Milken Institute authored by Edward DeMarco and Michael Bright. DeMarco, former acting director of the Federal Housing Finance Agency, now leads the Housing Policy Council at the Financial Services Roundtable. Bright is executive vice president at Ginnie Mae, the government corporation that stands behind mortgages backed by the Federal Housing Administration, Department of Veterans Affairs and Department of Agriculture.

"If you're going to have a dumb policy, this is at least a smart way to do it," he told POLITICO after his speech.

“I personally continue to believe that a government guarantee in the secondary mortgage market is a bad idea, a risky and an unneeded idea,” Hensarling said at the conference. “Any government guarantee must be limited to catastrophic losses.”

He has reached out to the committee's top Democrat, Rep. Maxine Waters of California. Reps. Sean Duffy (R-Wis.) and Emanuel Cleaver (D-Mo.) are also working on ideas, he said.

Separately, he criticized efforts by FHFA Director Mel Watt to retain capital for Fannie and Freddie, which currently send their profits to Treasury under a contract known as the net worth sweep. If Congress cuts the corporate tax rate, as expected, the companies would have to write down the value of their deferred tax assets, triggering a loss that would force them to seek taxpayer help.

Watt is seeking to avoid that draw in part because it would also suspend payments to an affordable housing trust fund.

"It is unfathomable we would stop a full sweep to benefit taxpayers in order to continue to fund an affordable housing trust fund," Hensarling said. "That’s untenable."

In the Senate Banking Committee, mortgage reform is taking longer than expected as lawmakers explore new ideas for rebuilding Fannie and Freddie, Sen. Heidi Heitkamp (D-N.D.) said.

Chairman Mike Crapo (R-Idaho) had put reform of the government-sponsored entities, or GSEs, on a short-list of priorities, but the timeline has been pushed back, Heitkamp said at the NAR conference.

“GSE reform has gotten complicated, new ideas are percolating and developing,” she said. “The chair originally had said he wanted to do GSE reform first, but I think that got to be too complicated because the ideas were too new.”

Earlier proposals from Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.), and from Crapo and former South Dakota Sen. Tim Johnson, which sought a broad restructuring of the mortgage system, have been set aside, Heitkamp said.

“I don’t think it’s going to be early next year,” she said. “We’re all going to try to push very hard to make sure this is a bipartisan agreement.”

P.S
THE FUC*I DONT!

[lumpina]

OR, next month, OR, next year. Don't know if this will ever end (beneficially).

[navycmdr]

GSEs are Golden for Recap and Release ...



Report: Franken will resign Thursday

BY JOHN BOWDEN - 12/06/17 04:55 PM EST 86

A source close to Sen. Al Franken (D-Minn.) on Wednesday confirmed the senator will resign Thursday amid mounting allegations of sexual misconduct, Minnesota Public Radio reports.

The official said they spoke to Franken and to Franken's staff, MPR reports. Franken has traveled to D.C. to discuss his future with his family, a staff member told the official.

Dozens of Franken's fellow Democratic senators called for his resignation earlier Wednesday after weeks of speculation about Franken's future in the Senate.

If Franken resigns, Minnesota Gov. Mark Dayton (D) to name a successor. There would then be an election in 2018 to serve out the remaining two years of his term.

– This breaking news story will be updated.

[Mnemonic]

Next Friday. It's always next Friday.

[jcromeenes]

Slammed? Don't think I'd go that far:

FNMAS -.11
FNMAT -.02
FMCKJ -.15

[NobodyFromNowhere]

Pfds slammed, commons strong as Average Joe Plan makes Market Watch!

[snapple]

How hi can we go in 2 years?

[Spicoli]

Email to My Rep.....

I have called your office to request your stance on the GSEs a couple weeks ago and have not heard back.. I am a current GSE stockholder and feel that the whole financial crisis has been blamed on the 2 entities unfairly. I feel they have been scapegoats for those beholden to TBTF institutions. What does Hensarling mean by "wound down and charters revoked". I am a shareholder and I am being robbed, plain and simple, by my own government. You should be my voice. I want you to be my voice. Please respond with your stance. Should and will shareholders be protected?

[MoCubano]

Key is to hold on to your shares now. Pieces falling into place, bit by bit. You I'll pity the day that you sold when the rocket launches and u have to chase like a greyhound on the race track!! Boy, those days will be epic when it flies supersonic!

[navycmdr]

after being RED most of the day Commons recovered well

Freddie closed +0.00 even $ 2.90
Fannie closed -0.0123 $2.96
FNMAS -.11
FNMAT -.02
FMCKJ -.15

[MannSinger]

These cartoons in Congress has ZERO credibility or effect

There is no effect on pps from all those bad words from cartoon's mouth.

[navycmdr]

Since the Summer, a Sweet Rally for Fannie Mae, Freddie Mac Common. Meaning ?

Wed Dec 6, 2017 ... By Paul Muolo ... [e-mail]



Since the summer, the price of Fannie Mae common stock has spiked by 32.7 percent with a slightly bigger gain in Freddie Mac, according to calculations by Inside Mortgage Finance. But what does it mean, really ?

Both companies have been wards of the government since the fall of 2008 and although the two are quite profitable these days, their future is uncertain even though key members of the Senate Banking Committee are working on reform legislation, which could see the light of day early next year.

Still, very few research firms follow GSE common and one that does, Keefe, Bruyette & Woods, has assigned a nominal value of $1 per share to each. In trading Wednesday, Fannie?s share price was up slightly at $3.00 with Freddie?s down a fraction to $2.89. In early July of this year, Fannie common sold for $2.26, with Freddie at $2.16.

Both stocks are traded on the Over-the-Counter market, having been delisted by the NYSE long ago. During their pre-conservatorship heyday early last decade, both traded around $75 a share.
(and they will again U BOZO)

[Clark6290]

100% untrue. Remaining $600M would not transfer to Treasury until 30 MAR 18. Well over 3 months and I am doubtful FNMA will have a loss this QTR or next.

[whipstick]

well luckily we have QE and NIRP to save us.