Fannie Mae (FNMA)

[Fannie Heyyyyy]

I still predict 1st half of 2025 IF Trump wins.

Late 2027 if FJB stays in.

[TightCoil]

What's next for Lamberth?
He would have to reject the appeal...
Or is there a comparison?

[SamuraiVoyager91]

Wie geht's denn mit Lamberth weiter??
Er müsste die Berufung ablehnen...
Oder kommt es zu einem Vergleich?

[jog49]

"What are we waiting for? Set the capital reserve to a more realistic level. 4% is too much. 2% is plenty. No more capital needed and exit C-ship."

You know that won't fly. It makes too much sense.

[Wise Man]

FACT: The authority of UST was about the PURCHASE of securities, and it hasn't purchased even one security.
No one has ever wondered how is this even possible.
It all began with the issuance of $1B worth of SPS free of charge (1 million stocks at $1,000 per stock), with the objective to reduce the Core Capital in the same amount (It carries an offset: it reduced the Additional Paid-In Capital account. Source) and justify the Conservatorship with (G) LOSSES: Likely to incur losses that deplete capital.
Since then, all the SPS LP corresponding to the draws from the UST (1:1) has been increased and that's a Securities Law violation because the securities must be dated at the time the company raises fresh cash, and necessary for the deed of purchase (necessary for the capital gains tax, etc).
Other theme is that, for reporting purposes, they can be unified in one security if they have the same price and characteristics.
The objective was to skip the deadline on the "TEMPORARY" second UST backup of FnF inserted by HERA with unlimited yield SPS, of December 31, 2009, because the deadline refers to the authority on PURCHASES mentioned, and there's been none.
The Warrant is another security that was issued for free on day one, in an attempt to override the prerequisite on PURCHASES by the UST of (iii) to protect the taxpayer (collateral). Once spotted, collateral it is. Collaterals aren't allowed in the original Fee Limitation of the United States ("PROHIBITION...."), this is why Calabria/Pelosi's HERA continues to raise our eyebrows.

This is one of the 7 Securities Law violations that need to be settled and also it serves as Punitive Damages that the Equity holders require to the DOJ. Although the common shareholders waive this claim in the case of "as is" and "takeover" resolution of Fanniegate, not in the case of a Takings at BVPS.
The same with the second round of Punitive Damages due to the Deferred Income accounting, in the case that it's allowed to amortize it into Earnings in one fell swoop without the existing shareholder ($61B Deferred Income together as of end of 2023, is recorded as Debt, not Equity. $42B in Freddie Mac alone)
The third round of Punitive Damages, is against the plotters of the government theft story in formal documents: court briefs, books, articles, etc., for the cover-up of many statutory provisions (Restriction on Capital Distributions; "May" recap is imperative once the capital is generated; etc.) and financial concepts (Dividends, a distribution of Earnings, unavailable with Accumulated Deficit Retained Earnings accounts).

2- SPS LP increased for free since December 2017 and its offset, are missing on the balance sheets (Financial Statement fraud)
3- Fannie Mae posted a charge on the Income Statement, when no SPS LP was required to be increased in the 1Q2020 Earnings report.
4- Stock price manipulation.
5- The value of the Warrant was credited to Additional Paid-In Capital account.
6- Dividends paid out of an Accumulated Deficit Retained Earnings account (for the Separate Account plan).
7- CRTs. Although it's a breach of the Charter Act (Credit Enhancement clause: not among the enumerated ones), it's included here to simplify and because it can also be considered a Securities Law violation. A credit enhancement operation in mortgages where the credit event is the credit loss, is a scam, because it occurs after the company carries out costly foreclosure prevention actions. For instance, Freddie Mac's STACR DNA or HQA notes. Whereas the credit event that triggers the claim of payment in the STACR DN or HQ notes, is serious delinquency. Since 2015, Freddie Mac only issues the former.
They are an excuse to make FnF pay an outstanding annual rate of return on these debt notes, currently between 9%-13% rate (Source: Earnings reports).
The CRTs look more like a continuation of the fraud in early conservatorship, with their 30-year zero coupon callable Medium Term Notes, redeemed at a 5% and 6% annual rate of return soon after they were issued, as a way to extort money from them, commented on Friday showing documentary evidence.

With the CRTs they made a mistake.
$19B in CRT expenses/recoveries is due because it's barred in the Charter Act, no questions asked.

[MRJ25]

You are working overtime.
You have nothing else to do?

[Wise Man]

Team work: Guido posts flawed analyses and I call him out.

[Augie Boukalis]

I don't think it matters if it takes 6 months or 2 years we can keep buying shares that are way to cheap 🛹🌵🇺🇸

[Wise Man]

(*) With (G) LOSSES: Likely..........

[The Man With No Name]

The process will probably take more than a year. Not happening under Biden, like I said over a year ago.

I doubt anything will happen for another 2 years.

[EternalPatience]

Absolutely

He has a better resume than most of us but that doesn't mean anything in this saga unless you have the powers.

[DaJester]

Totally true. He's just speculating like the rest of us, not much info to back it up unfortunately. I can't wait for some news or leakage of the actual release plan.

[nagoya1]

Looking forward to the GSEs being freed- hopefully sooner than later.
Thanks for spreading the info.
Fnma

[Guido2]

Thanks. But we're all doing our share. I appreciate you and Baron taking the time to set our detractors right.

[Rodney5]

You are the best Guido!

[Guido2]

It's team work. Thanks for bringing the article to our attention.

[RickNagra]

What are we waiting for? Set the capital reserve to a more realistic level. 4% is too much. 2% is plenty. No more capital needed and exit C-ship. https://t.co/7s7PvS5OtW

— Robert (@robjunier) April 25, 2024

[EternalPatience]

Pagliara is now only reaching the brain level of this board..

[TightCoil]

Don't give me a Ruse,
Don't gimme the Blues,
JustGimme some News,
News I can Use !

[stockanalyze]

"Since then he seems to be less optimistic of anything happening..", like a weather man, change tune every week, every month, every year. you know what it is called, manipulation ? fraudster? . don't speak if you don't know, shut the fok up. stop taking his name here, no one cares, zero credibility.

[FOFreddie]

Hi Mellon, This is one of the most thoughtful posts that I have seen. Thanks! The Lehman reference may or may not be relevant but appreciate the discussion and insight. Thank you for taking the time to post these insights.

[JOoa0ky]

If we get a 2x-3x donald bump in November, honestly I may just sell out and end this saga.

We all need to move on with our lives.

[EternalPatience]

Wonderful. You are the true warrior Guido

[Guido2]

@realDonaldTrump

Please make getting rid of @FHFA , the most fraudulent government agency in history, a priority in your second term.https://t.co/BT3OkchsXL

— Guido da Costa Pereira (@GuidoPerei) April 27, 2024

[stockprofitter]

The CEO of DJT complained via letter to the big wigs that his stock was being manipulated. Since then, DJT has gained 40%.

Would be nice if Priscilla did the same with FNMA.

Doubt it though.

We wait.

[Guido2]

Isn't that what @FHFA was doing? Settling for pennies on the $ as long as donations were made to politically connected nonprofits until stopped by @jeffsessions ?Their conservator swindled hundreds of billions due to Fannie Mae and Freddie Mac through this scheme.

— Guido da Costa Pereira (@GuidoPerei) April 27, 2024

[EternalPatience]

I know that there are a lot of MAGA warriors on this board.. Please see to it that FHFA is on the list of to-be-dismantled.. Put it on your truth social or go to any of his rally and do a slogan, placard and what not..

[EternalPatience]

While i am still 50-50 on Donald doing anything (if its him, which is 50-50 as well), the odds are 100% better than the current admin...

The FHFA heads as well as the GSE heads (indirectly are political appointees) being replaced willbe the first indication of any signs.

And depends on who heads Treasury, who heads FHFA... will tell us a lot..

[EternalPatience]

who wants to put FHFA into his ears on complete dismantlement

https://www.cnn.com/2024/04/27/politics/trump-federal-workers-2nd-term-invs/index.html

[JOoa0ky]

It's absolutely insane that this administration will pass the baton to the next one.

Leaving the fate of FnF to the donald.

[Golfbum22]

Well the hit pieces have calmed down since we aren’t close to breaking $2.

It’s a well oiled media machine against the gse’s for years now.

You would think big investors like Ackman would have paid for some news calling out this theft over the years.

With housing being so unaffordable you could get some people listening especially the younger generation that is being screwed these days by all kinds of housing manipulation.

[Patswil]

Thanks for the correction

I knew it was something huge like that


Maybe others will understand better

[EternalPatience]

Pagliara is as clueless as we are. Stop idolizing him and you will be fine in a few months

[tutt1126]

The 30-year fixed-rate mortgage rose to an average 7.17% as of April 25, according to data released by Freddie Mac FMCC on Thursday. 

[Guido2]

Actually $40 billion a month.

https://www.gata.org/node/6758

[trunkmonk]

Now im really confused, sort of like talking about the weather in Texas and comparing it to ozone gases while sitting in China junkyard. Not a thing of value, for years, towards GSEs.

[Wise Man]

That was debunked a thousand times.

the Gse’s took $40 billion in toxic MBS on their books at the direction of hank Paulson.

FnF have the obligation to repurchase the 3-month delinquent loans from their MBS Trusts (Special Purpose Entities, SPEs), in order to start their Foreclosure Prevention Actions in their Retained Portfolio.

your posts are way too long. Please try to be more concise

Of course! You want me to allow you to explain what has happened with lies and, secondly, to not explain the financial concepts behind.
My posts are very concise. It's not my fault a 15-year Conservatorship, which is linked to the FHLBanks' bailout in 1989, starring the same officials.

[Patswil]

Sadly, I’ve been around long enough to remember when the Gse’s took
$40 billion in toxic MBS on their books at the direction of hank Paulson. This allowed the banks to remain solvent when they would have otherwise been sunk, your posts are way too long. Please try to be more concise

[Wise Man]

I've posted (G) LOSSES. Can't you read?

neither entity met any of the twelve conditions for conservatorship

About the likelihood to incur future losses.
And those losses existed along with the need of capital infusion thanks to the taxpayer's assistance, as per the Charter Act (to finance their operations as a last resort, expressly written in the section Purposes, just before it's laid out their Public Mission that makes them take on credit risk and not properly compensated)

Obviously if most of them were fabricated losses, the likelihood was certain in 2008.
The losses and charges that made them need capital (SPS) to offset the negative Net Worth (Watch the signature image), have been explained a thousand times. The latest, 6 days ago.
I'll post them again just for you:
-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 that affects the AOCI line item in Equity (No "AOCI opt-out election" through regulation like the small banks, or, directly, break the rules in the large banks with the Held-to-maturity Portfolio, thanks to a Federal Reserve's alibi in a Balance Sheet Schedule on how to fill out a Balance Sheet, because Held-to-maturity is NEVER an option in investments in debt securities. Only the Fed does it in its own battered balance sheet). The trough date in the market price of the PLMBSs occurred 3 months into Conservatorship), as seen in this image:

Obviously, other losses were actual credit losses.

I remind you that playing the fool is an aggravating circumstance when assessing Punitive damages.
Please, behave.

You are publishing lies!

[Mr Michael]

Hi Mellon,

Great insights and advice!
I certainly appreciate what you have said:
“You should know being humble is lucrative”

Thank you for sharing and being such a positive and inspiring voice of this community.

Michael

[Freddie bagholder]

So PagLiar admitted to lying?
When will he say Trump Trump Trump?

You and him lie with such a confidence that you make it look like you are some kind of geniuses.

How can anyone say dumb POS Sandra will do 3R and she is working hard?

You guys need to get your head examined.

[Rodney5]

Glen, I appreciate you taking the time to call out Calabria. Quote: “ So if FHFA is not an independent agency then how does the SPSPA work? The government just signs deals with itself now?”

I encourage you to repent start publishing the truth on your Seeking Alpha. Quit fighting the Common Shareholders. We all know who the real enemy is here. Best Regards

[Rodney5]

You are publishing lies!

Mr not so much wiseman said Quote: “ The placement in Conservatorship is the only lawful action.” End of Quote

When Paulson met with the directors of Fannie Mae and Freddie Mac to inform them of his intent to take over their companies, neither entity met any of the twelve conditions for conservatorship spelled out in the newly passed HERA legislation. Paulson since has admitted he took the companies over by threat.

HOUSING AND ECONOMIC RECOVERY ACT OF 2008 Page 2734 Twelve Conditions
APPOINTMENT OF THE AGENCY AS CONSERVATOR OR RECEIVER
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf

[Wise Man]

The placement in Conservatorship is the only lawful action.
With (G) LOSSES, like to incur (fabricated) losses that deplete their capital. Already commented which ones.
And about the arrangements, all forms part of a SEPARATE ACCOUNT like the FHLBanks in their 1989 bailout by Congress, with assessments sent to a separate account,



Without realizing that, the FHLBanks had to pay $300 million in interests annually (a 10% rate on a $30B obligation, applying a 0.299% spread over Treasuries. GAO report. It was precisely, Sandra Thompson, who tapped the maximum amount authorized in the law, $30B, just when she arrived at the FDIC in 1990. Not a prudent course. And DeMarco in charge of accounting at GAO, requiring in the report to expel the independent accountant PwC, in order to save recourses. We later knew why: they were just reducing the 40-year interest payments from Funding Corp, where the FHLBanks were Equity holders, that only paid interests, without realizing that their SEPARATE ACCOUNT was for the REDUCTION OF THE PRINCIPAL of the obligation, not just those interests. Then, ST and DeMarco (GAO, UST, FHFA) needed funds to repay the principal. Thank goodness Silicon Valley Bank came across and ST happens to be the FHFA director, authorizing massive leverage in SVB with the advances -loans- from a FHLBank, disregarding the liquidity risk and with an AOCI opt-out election -unrealized losses in Equity- through FDIC regulation. They chose Held-To-Maturity portfolio instead, to evade recording their unrealized losses. Famous Trump's deregulation rhetoric, by removing the safeguards), the rest (on paper) reduces the principal of the RefCorp obligation (initially, a 40-year obligation), but with FnF, the dividend payments are restricted in a provision covered up by all the crooked litigants and the peddlers of the government theft story (the coverup of a material fact is a felony of Making False Statements.)


Therefore, with FnF, the entire assessment was used to repay the principal of the SPS obligation (obligation in respect of Capital Stock), knowing that later on, it will be assessed the true cumulative dividend on SPS the UST is entitled to: like the FHLBanks, it was established a spread over Treasuries, as set forth in the original UST backup of FnF in the Charter Act:

Taking into consideration the Treasury yield as of the end of the month preceding the purchase.

Hence, a weighted-average 1.8% cumulative dividend on SPS, considering a spread of 0.5% in each quarterly draw from the UST, and also the partial paydowns (It's netted out with the interests that the UST owes to FnF on the expected $152B cash refund)
Easy peasy. Just watch my signature image to see how it plays out, which is the image of a normal Conservatorship. So, don't tell me that it didn't happen.
On the other hand, a more complex mechanism in the bailout of the FHLBanks in 1989, unware that they were paying only the 40-year interests of Funding Corp, not reducing the $30B principal of the RefCorp obligation required in the law, that remained outstanding at the time.
Screenshot taken from the Earnings report of a FHLB:


And we have proof!
When the FHFA announced the "completion of RefCorp obligation", instead of paying down the principal of the obligation as stated in the provision SEPARATE ACCOUNT, it referred to "an obligation to pay interests on RefCorp bonds", mixing it up Funding Corp which was the one that only paid interests.
Playing with the word obligation: a security and also a noun (a requirement), like nowdays the Wall Street law firm representing the FHFA, with FnF: "Dividend obligation", like the RefCorp obligation that later was switched to an obligation to pay interests, instead of the security "obligation".
This way, the FHFA wants to make the dividend an obligation to pay dividends, when that doesn't exist in this world. A dividend is a distribution of Earnings (unavailable with Accumulated Deficit Retained Earnings accounts. Stuck at an adjusted $-216B nowadays), and also it's restricted when FnF remain undercapitalized (IN GENERAL).
Thus, the entire assessment was used to reduce the payment of the principal SPS, as per the exception to the Restriction on Capital Distributions (U.S.Code §4614(e)), under the guise of dividend payment (no actual dividend was ever paid in order to uphold the law).
Now is when Howard, a member of Berkowitz's legal team, steps in to claim in an Amicus brief filed with the Supreme Court, that the SPS are non-repayable securites (something not written anywhere), in order to curtail the reality of a Separate Account with FnF.


Finally, we can read in the explanation of the mechanism of RefCorp from a FHLB, that they weren't required to pay the assessments into a Separate Account if they report losses.

Any FHLBank with a net loss for a quarter, is not required to pay the RefCorp assessment for that quarter.

Whereas with FnF, the assessment worth "10% dividend" prompted the losses in many quarters, and subsequent draw request from UST and increase of SPS LP, with the objective to swelled the amount of SPS LP, so the dividend dollar amount was greater the next quarter, enriching the Treasury. Until they realized that, under the Separate Account, this was just a circular flow (drawing funds from the Treasury to pay down the UST's SPS) and the outcome is that they were just draining the UST's Funding Commitment. It's when they thought of the NWS dividend, that can't prompt the losses, similar to the FHLBanks' scheme.

We could have witnessed two rogue officials desparate to cover their losses with the FHLBanks (a $30B RefCorp obligation), using FnF, at the same time a Goldman Sachs alumni that just wanted the assault on the ownership of FnF with the Warrant "Clause 2.1: Shares assigned to any Person", and all of them made some politicians think that they had nationalized FnF to appease them, but, at the same time they made sure that they upheld the law with a Separate Account (July 20, 2011 Final Rule for the CFR 1237.12, better known as "The supplemental". A follow-on plan), authorized in the FHFA-C's Incidental Power ("any action authorized by this section,...".

To put just one example, senator Brown stating in a hearing a few years ago, that the conservatorships were being very profitable for the taxpayers. Now, he doesn't even mention the word "Conservatorship" when he realized that there is a Separate Account plan in accordance with the law, as we saw in last week's Senate hearing.
Once the dust settles, the taxpayer will net $0 in the bailout of FnF, as per the Charter Act.

Other theme is the multiple windfalls (10bps g-fee sent to UST as TCCA fee; a one-time 4.2 bps allocated to HUD/UST; the MHA program,...) and the possibility of a profit with the acquisition of our stocks at their fair value (BVPS) and resale at another fair value with a different stock valuation (for instance, a PER 10x and 12x).
The redemption of JPS at their fair value of par value, boosts the PER valuation (The EPS or Earnings for the PER, is calculated after the dividends on Preferred Stocks). It's a corporate decision and it has nothing to do with the ownership of FnF (they are obligations in respect of Capital Stock that can stay in the capital structure with a restated dividend. Though costly and unnecessary with an excess of capital: CET1 >2.5% of ATA)

[TightCoil]

Fannie Mae - Freddie Mac Commons
Be Bold
Hold for the Gold

[EternalPatience]

June to the moon

Or

Moon in June

[real777mellon]

Can you guys all just keep to being humble and stop turning this into Reddit?
No one cares who has been posting things firms already read and don't share. No one is a moron or and idiot. No one will get credit for being the most "right" because everyone here is looking at this wrong one way or another.

I'm going to share something as I have had success with listening, and sharing what I can that is goodwill to share given I spend more sweat equity sharing what I don't have to for never getting any return from strangers on a message board.

I usually have some guy tell me he was here longer and I'm wrong and I took all this time just to condense things for you to tie together.

So here's a bit of information from the 336 page PDF report online from the examiner of 'Lehman' (the global parent and its focus on how it consolidated its balance sheet as well as legally did it's infamous accounting "Repo105")... If you think that this isn't all a private and public sector coordinated intentional process playing out to bring new litigation and cross-jurisdictional practices out while the first global "crisis" took place on both paper and the early 80's to 2000's internet connected financial world.... maybe think this whole time the unwinding is being done very carefully but also rolling out at privately coordinated stages as the internet (undersea fiber cables, satellites, software, hardware, data centers etc) in 2024 is more equipped to handle cross-jurisdictional movement of assets, transactions, accounting that works in connected worldwide counterpaties, inter-company cross-jurisdictional entities rolled onto one US based parent balance sheet?

This is something to think about. You are not all wrong, but being convinced you are right enough to call people Reddit level bs back and forth. You should know being humble is lucrative. Being internet "right" will get you nowhere.



Now someone will go ahead and say but mellon that's Lehman! Not Fannie Mae!

You really need to study more if that's how you're going to think of this all.

Repo105 (used to make US Treasuries, Agency Fannie and Freddie securities/bonds 'disappear')



I will leave this for you all to consider a narrow scope of this and calling others idiots for trying to grasp something results from an argument one of you started - Do you want to make money? Or do you want to fight?

If we keep it to sharing insight we can hive mind better results for all investors. No one cares who thinks they are "right"... in the end what a waste of time.

Don't make this Reddit. Work together.

-Mellon

[FFFacts]

Careful about what you are optimistic about. Sure he can make plans and offer a consent decree but it could be a multi-year process with milestones and achievement requirements and guarantees for affordable housing. Shareholders could still get screwed for many years.

[Rodney5]

Here’s another example of failure lawsuit with no reference of the Regulator breaking the law.

UNITED STATES COURT OF FEDERAL CLAIMS
Wazee Street Opportunities Fund IV LP,
Filed 04/03/23

Quote: "This lawsuit does not challenge the foregoing arrangement made in
September 2008. While Plaintiffs do not concede that all the measures taken in September 2008 were justified or necessary, they are not here to challenge the placement of Fannie and Freddie into conservatorship at the height of the financial crisis, or the original deal struck by Treasury and FHFA at that time." End of Quote. Page 7

The lawyers are focused on the third amendment net worth sweep. By Public Law the whole contract is illegal, the contract is illegal based on the United States is not permitted to charge a commitment fee to be paid by the enterprises.

Link: https://storage.courtlistener.com/recap/gov.uscourts.uscfc.37252/gov.uscourts.uscfc.37252.30.0.pdf

[bradford86]

Pagliara thinks that is the deadline for any Biden action based on what he heard 5 months ago. Since then he seems to be less optimistic of anything happening. I still am optimistic. Capital plans are coming next month