Fannie Mae-No Politics (FNMA)

[FNMAstalker]

Since the Judgement was against the government they have 60 days from 3/20. So 5/20.

[TightCoil]

Don't Fold
Hold for the Gold

[Guido2]

Thanks for the feedback. If I get enough likes and retweets will add to the thread and elaborate on each of the three areas where the politically connected are benefiting from the conservatorship.

[Golfbum22]

Might want to explain fake jobs to Clowngress as they are not that smart

Jobs given to family and friends
Overpaid to not do much

Why are the gse’s funding the Fhfa?

Etc

Great job!

[Guido2]

Are Fannie Mae & Freddie Mac being kept in a fraudulent "temporary" conservatorship for the enrichment of the politically connected through:

A) Fake jobs at FHFA?
B) No-bid contracts?
C) Sandra Thompson's CRT Program?

FREE FANNIE!
FREE FREDDIE! https://t.co/FnapIFf3ip

— Guido da Costa Pereira (@GuidoPerei) April 21, 2024

[Sammy boy]

What does a wait equate to in dog years?

[juicyjuice10002]

There is good cause to fire this woman and others involved.

[navycmdr]

FHFA no-bid contract deal -

In May 2023, I pressed FHFA Director Sandra Thompson on Doma Holdings: pic.twitter.com/NKeDYXNTw2

— Congressman William Timmons (@RepTimmons) April 19, 2024

[stockprofitter]

Good. So they are moving forward with insurance :)

[Rodney5]

You mentioned critical capital levels and somehow you believe everything the government has done is legal. What will happen? Will the government reverse the stranglehold on the company?

Although Fannie Mae is gradually rebuilding its capital base, capital levels remains substantially below regulatory requirements. Fannie Mae is subject to the enterprise regulatory capital framework (ERCF), though capital requirements have been waived during conservatorship. While Fannie Mae had a GAAP positive net worth of $78 billion at YE23, the ERCF excludes the stated value of the senior preferred stock ($120.8 billion), as well as a portion of deferred tax assets, resulting in the Company being significantly undercapitalized. Indeed, at YE23, the shortfall to adjusted capital requirements totaled $243 billion, with the Company reporting negative regulatory capital ratios given deficit for each tier of capital. Given covenants under the PA, Fannie Mae also does not have access to equity funding except through draws from the U.S. Treasury (and only when total liabilities exceed total assets).

[Guido2]

There's at least one politician looking into FHFA's sweetheart deals with those that are politically connected:

Last year, I pushed back against a sweetheart deal that gave Doma Holdings, a politically connected company, a no-bid contract to run FHFA’s title insurance pilot program. The program was then rescinded….until this year's State of the Union when President Biden announced this… pic.twitter.com/nquyOJifeM

— Congressman William Timmons (@RepTimmons) April 19, 2024

[Wise Man]

BOOM. This image from JPM illustrates my point: the PLMBSs skyrocketed just after FnF were placed in Conservatorship.

Trough date is the date the PLMBSs hit the bottom. We see that in most of the different groups, it was 3 months after the day of Conservatorship. Other, one year later.
Later they skyrocketed (From trough date to the end of 2009, up to 30% higher)

[Ispro]

I dont think, we will ever get damages

[Fannie Heyyyyy]

We will see Jog. We will see.

[LuLeVan]

Has the Lamberth ruling now become final because the 30-day period has expired? Or does the defendant's motion count as an appeal that extends the deadline? In other words, until when do you have to have FnF shares in your portfolio to receive the damages from the Lamberth ruling?

[Wise Man]

The link between unrealized losses and the conservatorship is clear.
FnF were placed in conservatorship pursuant to the FHEFSSA section 1367(a) APPOINTMENT OF THE AGENCY AS CONSERVATOR (which, by the way, was an amendment inserted by HERA in the FHEFSSA), according to the SPSPA:


Although it isn't specified, there are 12 reasons for the conservatorship at the discretion of the FHFA.
Likely, it was chosen (G) LOSSES: Likely to incur losses that would deplete all of its capital.
Related to future (fabricated) losses, not past losses as Washington Federal (bailed out by the Treasury Department in 2008) claimed in court in a clear case of misrepresentation of the law.
Spot on! Those future losses came true if they were all fabricated:
-The 10% dividend to Treasury.
-The DTA valuation allowance.
-Outsized provisions for loan losses caused by the prior Incur Loss accounting standard and the Obama's programs, as FnF were compelled to set aside a reserve equal to the concession granted to borrowers, not the actual expected loss (it was changed in January 2020 for the CECL accounting standard). An amended in 2011 ballooned the borrowers elegible, as now, it was up to the management to decide if one borrower current on its mortgage payments was at risk of default.
-The initial $1B SPS LP issued for free, it reduce the Additional Paid-In Capital account (Core Capital) in the same amount (currently in place with the SPS LP increased for free every quarter, but the managements commit financial statement fraud by not posting both operations on the balance sheets)
-The mispricing of the PLMBSs.

Their ambition to prompt losses, so more SPS LP is increased, fired back, because the dividend was restricted and unavailable, and instead, it was a separate account for the reduction of the principal of the obligation, similar to the one with the FHLBanks in 1989.

Finally, have you noticed in the screenshot that the FHEFSSA is cut short with "FHE Act"? Typical in documents. But then, it has deviated to today's "GSE Act" in the Earnings reports from FnF.
This way, they seek to delete any trace of the FHEFSSA that contains the only authorized capital metrics and their definition; the capital classifications and definitions, to see that the Minimum Leverage Capital level is met with Core Capital or with CET1 and T1 Capital added recently, and the Risk-Based Capital requirement, met with Total Capital. They aren't met with "Capital Reserve", an invalid capital metric in the FHEFSSA and badly assessed (adjusted Capital Reserve = $0), only used by the Federal Reserve System in its battered Balance Sheet (Called "Capital Surplus" but it's the same concept).
"GSE Act", looks more like the Charter Act, which is also being concealed.

This is like other plotters all day with "HERA, HERA, HERA" (Rosner and the plaintiff Joshua Angel and khtomp19 on this board), when it's the FHEFSSA (and the Charter Act) as amended by HERA. Never HERA alone.
They don't want you to see what HERA didn't amend: Critical Capital level, definitions, etc. And also, what did HERA amend? Because HERA struck the prior MANDATORY release Undercapitalized: when the Core Capital (Tier 1 Capital) > Minimum (Leverage) Capital requirement (2.5% of ATA in their ERCF).
Calabria/Mnuchin chose a steep CET1 > 3% of ATA, which was snubbed.
Under the Separate Account plan, FnF have CET1 > 2.5% of ATA. Which bodes well for the redemption of the JPS (AT1 Capital) at their fair value of par value, and then, FnF would comply with the ERCF of Tier 1 Capital > 2.5% of ATA. Also complying with the FHFA's desire of "membership cleansing" before the Privatized Housing Finance System revamp chosen for the release in 2011 by the UST, at the request of the Dodd-Frank law, as seen in its 2016 Final Rule with the FHLBanks, that ordered the expulsion of the unwanted members.

We can even spot that Calabria forgot with HERA to include in the FHEFSSA the typical "18-month implementation" (like in the very FHEFSSA in question when the first capital ratios in 1992), when it directed the FHFA director to change the capital requirements and add new capital metrics (CET1 and Tier 1) besides a Capital Buffer, that would have prevented the current "back-end Capital Rule" (effective February 16, 2021), that is, enacted after the Transition Period to build capital, given always by any Federal Agency when there are changes.

The mandatory release implies that FnF have to build regulatory capital in the first place.
Playing with the words is their modus operandi: "dividend obligation", in order to pass it off as interest payments on obligations (1989 FHLBanks' bailout) and skip the Restriction on Capital Distributions (Dividends; SPS LP increased for free; the Lamberth rebate), besides unavailable Earnings for distribution as dividend, out of an Accumulated Deficit Retained Earnings accounts all along.

[Wise Man]

The information about bond insurers and bond insurance coverage was a topic in their earnings reports in early conservatorship, but nowadays FnF don't talk about it, primarily because they no longer hold PLMBSs.
The important thing is that the purchase of PLMBS was illegal in the Credit Enhancement clause of the Charter Act (Lack of credit enhancement operation. For instance, today's commingled securites/resecuritizations/Catastrophic-Loss Reinsurance do comply with this clause, as the underlying securities are 100% insured by other guarantors. Credit Enhancement operation number (iii)).
Had the FHFA complied with the law, the conservatorships wouldn't have existed.

Nowadays, more illegal operations with the Credit Risk Transfers (CRTs), because it's not one of the enumerated Credit Enhancement operations authorized.
The fact that there are senators like the former senator Toomey or currently, senator Rounds this week, encouraging the FHFA director to do CRTs, doesn't make it a law, or an amendment of the Charter Act.
Both repeat the same slogan as Sandra Thompson: "To protect the taxpayer". The taxpayer doesn't bear credit risk in FnF. It just buys obligations SPS upon negative Net Worth ("capital deficiency"), which matches the "finance their operations as a last resort" written in the section Purposes of the Charter Act, in exchange for their Public Mission written below it (outdated nowadays if they no longer subsidize the g-fee; Duty to Serve protected by the Fair Housing Act, etc). That is, a UST backup and not govt implied guarantee on the MBS.
$19B in CRT expenses and recoveries, net, is due (turned into Retained Earnings account. This account is the sound and solvent condition to protect the SPS and the taxpayer: soundness and solvency)

Watching the UPB of those PLMBSs covered in 2010, and then, the unrealized losses, it doesn't look like the insurance claim against the bond insurers was large.

The main economic harm in FnF was caused by the mispricing of the PLMBSs by Wall Street, with the objective to prompt the conservatorships in FnF.
Later, the PLMBS skyrocketed in price.
The S.E.C. years later found no evidence of PLMBS price manipulation those years.
This is the line item AOCI (accumulated unrealized losses in AFS securities) in Equity that prompted the conservatorship. FnF didn't know the banks' trick of "Held-to-maturity portfolio".

Freddie Mac:

At March 31, 2010, we had coverage, including secondary policies on securities, totaling $11.5 billion of unpaid principal balance of our investments in securities. At March 31, 2010, the top five of our bond insurers, Ambac Assurance Corporation, or Ambac, Financial Guaranty Insurance Company, or FGIC, MBIA Insurance Corp., Assured Guaranty Municipal Corp., or AGMC, and National Public Finance Guarantee Corp., or NPFCG, each accounted for more than 10% of our overall bond insurance coverage and collectively represented approximately 99% of our total coverage.

We recognized other-than-temporary impairment losses during 2009 and the first quarter of 2010 related to investments in mortgage-related securities covered by bond insurance as a result of our uncertainty over whether or not certain insurers will meet our future claims in the event of a loss on the securities.

[1203Simon]

Are we only waiting for Lamberth to review the appeal?

[imbellish]

sorry, more noise than signal.

[Sammy boy]

I think he would have bought at least under .75 cents. Keep cheering !

[stockanalyze]

what news?

[naveedkhan]

Fnma c suit?

Why hasn’t a suit been filed for the Fannie commons. The Fmcc c and bot companies p shares won? Knowing how long it takes why would they wait?

[Donotunderstand]

When free - could be huge

[TightCoil]

Grab all you can before Hawkeye Buffett gets 'em

[jog49]

"I think Lamberth sides with the shareholders." Sure thing! LOL (at you)!!!

[real777mellon]

A great article I got that one bookmarked! Did you see this one? https://money.cnn.com/magazines/fortune/fortune_archive/2007/07/23/100134938/index.htm

[Guido2]

https://fortune.com/2008/11/25/lehman-brothers-presidential-connections/

[real777mellon]

The end of conservatorship? 2025 latest. Just a guess.

[tutt1126]

https://en.m.wikipedia.org/wiki/Slush_fund

[MoneyRobot]

At the end, I think shareholders will see value in their investment. But, the question is when is the end? 2028? During Trumps 2nd term if he wins? Who knows?....go figure

[MoneyRobot]

The debts that fnf hold are what I would consider good debts. The only "bad" instruments that fnf hold that harms the original shareholders are the warrants and sps. The worst contract is increase RE and increase SPS.

But those are not debt. Like it or not, uncle sam is a shareholder.

[MoneyRobot]

Going back to pre c ship will not happen. But there can be a new structure that is similar to recap and release. There are many options that can happen. We just have to wait and see.

[MoneyRobot]

I don't believe that. The gov did not hold one share of the Big 3 auto stock until after the bailout happened. I know. I held shares of GM and do follow who the institution and major shareholders are because I am a trader. I did lose money with GM and Bear Sterns almost wiped me out going into the financial crisis. They did a weekend bk where all shareholders can do is watch and cry.

[tutt1126]

Did government print out money to bailout?
No

[tutt1126]

I didn't know his name.

[Martymar564]

Who is Former Treasury Secretary Henry "Hank" Paulson's brother?

[tutt1126]

at the time of collapsing Lehman Brothers,, brother of Treasury Paulson asked his brother to rescue Lehman but his brother who was Treasury refused to rescue his brother at Lehman.

also in 2008 crisis, government shorted against 800 stocks including gm, and all other financial institutions.

each stocks lost value over 80 percent. where did all the money Go?

about 20 percent went to individual pockets who shorted the stocks.
and the rest went to government.

[tutt1126]

at the time of collapsing Lehman Brothers,, brother of Treasury Paulson who worked in Lehman Brothers asked his brother to rescue Lehman but his brother who was Treasury refused to rescue his brother at Lehman.

also in 2008 crisis, government shorted against 800 stocks including gm, and all other financial institutions

[tutt1126]

Oh yes , I missed that
You are right

[stockprofitter]

I believe it was AA prior unconfirmed

P have junk status I know that much

[stockprofitter]

Or will Libor settlement satisfy capital

One of the three

Or
Consent Decree

[Golfbum22]

Makes you wonder why they were allowed to do this?

[tutt1126]

Will F&F exit conservatorship to restore shareholder contract due to the legal case in DC?

Quote "FHFA violated by breaching the implied terms of their contracts with shareholders, when FHFA changed the terms of a stock purchase agreement to transfer the mortgage financing institutions’ profits to the U.S. treasury.

Therefore if defendants settle about $800 million dollars with shareholders without exiting conservatorship then the violations are still violated . It won't resolve the case according to Fannie and Freddie spspa class action.

Therefore right now, exit conservatorship is now a must.

[tutt1126]

True

[Golfbum22]

So previous to the AAA ratings announcement

There were no ratings for 15 years?

Then this is very good news

[tutt1126]

Thank !
It used to be blank with no details for 15 years.
Now it displays full and accurate details to public to attract new investors when exiting from conservatorship.

But there are only two questions to ask .

Will F&F exit conservatorship due to a housing crisis?

Or

Will F&F exit conservatorship to restore shareholder contract due to the legal case in DC?

[Rodney5]

Yes, you’re right debt has value. It’s not like Fannie and Freddie are credit card companies. The risk is minimal when holding Real Property as collateral. That’s what l don’t understand Cat Man setting the capital standards way above necessary. Sounds like he’s any enemy of the shareholders.

[Golfbum22]

What were the ratings before this announcement?

Tia

[stockprofitter]

I hate using the term no brainer but this is what this investment is agree.

[real777mellon]

If that's not the signal to just go as far in as you can at $1.34, I don't know how the writing on the wall could be written any clearer. There's nothing that will stop this systematically integral part of US financing etc. from being one of the best investments and most obvious for the average investor of at least the next decades of one's life. Enjoy the dip. AAA ratings are a big deal on Wall Street.