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$FMCC~ Buying a stairway 😉
$Boooom ! 200,000 share $BUY on $FREDDIE !
GREEN GSE pattern continues w Freddie Vol higher than Fannie
pre-mkt craziness goin' on w FREDDIE !
settling down now - Bid was $1.55 ASK $1.53
2,628 shares Traded pre-mkt Last $1.53
but BID X ASK $1.53 X $1.52 ? Roaring Kitty 
The landscapers are FIRED 
CBO report shows $FNMA $FMCC can be released from Conservatorship once they reach $128B in retained earnings (they now have $132B). The Gov would gain $98B windfall. Of course, Junior Pref shares (like $FNMAT) get paid full par value at that point.
— Jarndyce Jarndyce (@JarndyceJ) June 6, 2024
1/https://t.co/SFA4rDDprf pic.twitter.com/NW6Yi7DRsk
Fannie Mae Exceeds $3 Billion in Single-Family Labeled Social Bond Issuance
June 6, 2024
Social Bond Indicator Provides Insight into Programmatic Social Bond Issuance
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) released a new disclosure for its single-family mortgage-backed securities (MBS), the Social Indicator. This disclosure helps investors easily identify MBS issued since March 1, 2024 that meet the criteria outlined in Fannie Mae's Single-Family Social Bond Framework.
"We're pleased to provide a social label to help investors better identify pools that are highly aligned with Fannie Mae's mission," said Devang Doshi, Senior Vice President, Single-Family Capital Markets. "With the Social Indicator, investors using our PoolTalk® and Data Dynamics® platforms and other third-party systems, such as Bloomberg, can now easily identify the over $3.6 billion in single-family social bonds that Fannie Mae has issued to date and monitor future issuance to analyze for fit in their portfolio."
This latest disclosure enhancement is another step Fannie Mae has taken to attract new sources of capital to the U.S. mortgage market.
"Since March, Fannie Mae's Whole Loan Conduit has offered monthly issuances of over $600 million in Social MBS to investors, and plans to continue to issue these bonds programmatically," said Nick Sapirie, Vice President, Single-Family Capital Markets. "These MBS offer an attractive profile to investors with a social objective, and those without. The premiums that investors pay for these securities help to encourage lending to the borrowers we are chartered to support, a dynamic we've highlighted in a recent Perspectives blog and research paper. We've also seen consistent issuance from several MBS lenders using our platform."
Fannie Mae's Single-Family Social Bonds are backed by loans to populations that typically face barriers to obtaining affordable housing or access to credit. Fannie Mae's Mission Index™ disclosure is the foundation of the Single-Family Social Bond Framework, which adheres to global standards and is validated by a Second Party Opinion.
"Fannie Mae's Mission Index and single-family social bond framework have significantly increased market transparency by providing pool-level insights into the underlying loans in collateral pools," said Dennis Lee, Securitized Credit Analyst Team Leader, and Ramon de Castro, Portfolio Manager, MBS and RMBS Strategies, both of T. Rowe Price Associates, Inc. "Fannie Mae's thoughtful approach gives us confidence that proceeds are being efficiently allocated to target populations, generating improved outcomes for both target populations and investors, as well as enabling us to share tangible metrics of social impact in U.S. housing with clients."
In line with social bond practices, Fannie Mae will also provide annual impact reporting to help the market understand the social impact of the loans underlying their investments.
To learn more about how premiums investors pay for MBS promote mortgage lending, read "Benefiting Borrowers with a Creative MBS Disclosure Solution."
filed 6 weeks ago -our reply deadline
is this Friday June 7th ...
197,675 shares on FREDDIE Mac BID ! ...
idiot doesn't post what avg GSE Credit score is or LTV
Credit scores avg 750 LTV's are 50%
GSEs are NOT the SAME as 2008 - DO SOME ACTUAL RESEARCH
GSE delinquency rates are a fraction of the REST of HOUSING !
Freddie (and Fannie) and the Coming Nightmare on Main Street
By JUDGE GLOCK - June 4, 2024 6:30 AM
Government-sponsored mortgage companies are growing larger and riskier in service of social policy.
During the financial crisis, the federal government bailed out several financial institutions. But two in particular, Fannie Mae and Freddie Mac, the government-sponsored mortgage giants, stood out. Taxpayers shelled out $191 billion to support them — combined, this was the largest bailout in American history — and for the past decade and a half the two institutions have been under government control.
Americans who thought the government would rein in Fannie and Freddie after their failures were sorely mistaken. The companies have only gotten larger. The Biden administration in particular has tried to make Fannie and Freddie bigger, and the result will be to make them riskier. At some point taxpayers will suffer the consequences again.
Only in government would a spectacular failure lead to a massive expansion in responsibility. In 2006, Fannie and Freddie, along with their smaller cousin Ginnie Mae, supported about 40 percent of all outstanding single-family mortgage debt. They now support over 65 percent. Fannie and Freddie today have $7.5 trillion in assets: an all-time high.
The massive size of these government-sponsored enterprises is not enough for some in the Biden administration. In early 2024, Fannie and Freddie’s regulator, the Federal Housing Finance Agency, raised the maximum dollar amount of single-family mortgage loans the two companies could purchase. Now borrowers can effectively get government-backed loans up to $1.15 million in some areas, which hardly seems necessary for Fannie and Freddie’s goal of increasing home ownership. The FHFA also seems likely to approve a Freddie request to purchase second mortgages. The “primary goal” of the proposal, the government says, is to create a cheaper version of “cash-out refinance” — in other words, to allow consumers to pump more borrowed money into the economy at a time of persistent inflation. Some estimate the proposal could add another trillion dollars to consumer spending.
The Truth about Redlining’s History
One reason Fannie and Freddie are expanding their footprint is that the government hopes to use the short-term profit from these activities to support other political goals. In 2022, the FHFA pushed Fannie and Freddie to eliminate up-front fees for home buyers who had low incomes. As FHFA head Sandra Thompson told Congress, “we were able to do this because the returns the Enterprises earned on second homes and vacation homes, investor homes, are more than enough to offset the first-time homebuyer up-front fee.” What she should have said was that the government was using taxpayer money on some mortgages in order to earn short-term cash to subsidize other groups and social programs.
The FHFA has said that it wants to “limit egregious rent increases” at rental properties where Fannie and Freddie guarantee the underlying mortgages, even though that would increase the likelihood of defaults on those properties. It is “adding new requirements related to fair lending, fair housing” and “Equitable Housing Finance Plans” to Fannie’s and Freddie’s mandates. Through a recent equitable-financing plan, Fannie provides special benefits to loans in majority-black and -Latino census tracts. The FHFA is also participating in the Biden administration’s plan to “address racial bias in home valuations,” which aims to increase home appraisals in minority areas. It has ordered the companies to increase fees for low-risk borrowers and decrease fees for high-risk borrowers, with the goal of having the careful subsidize the rest. It also plans to reduce the number of credit reports required for new loans.
Fannie and Freddie have been able to engage in such expansive plans in part because, besides being under government control, many of their loans are now purchased by the government. The Federal Reserve began buying mortgage-backed securities from Fannie, Freddie, and Ginnie after the financial crisis. Today the Federal Reserve holds over $2.3 trillion in government-sponsored mortgage debt. One semi-governmental enterprise is propping up another.
All of these programs are part and parcel of this government’s policy of subsidizing housing demand while doing little or nothing to increase its supply. The Biden administration has proposed to add to this problem by giving tens of thousands of dollars in subsidies to home buyers and sellers, the only result of which would be to further drive up prices.
In the last financial crisis, Fannie’s and Freddie’s scandalous practices became widely known. Investigators found out that Fannie put friends and family of people in Congress in cushy jobs and opened “partnership offices” in important congressional districts to hand out patronage and secure political support. Fannie’s officials got millions of dollars in reduced-rate VIP loans from institutions such as Countrywide Financial from which they purchased mortgages.
Just 15 years after the Fannie and Freddie scandals and bailouts, it is astounding that these government behemoths are growing larger and riskier. Without a significant change, Americans can look forward to reading about more scandals and bailouts in the future.
COMMENTS - 17 Comments
do some actual research - GSE already fixed - avg credit scores 750 - LTV's 50%
Sort by
e_d
2h
Rabbit hole ,I heard a dog whistle. We will just have to see where this goes. Fair lending practices can be positive for wealth creation.
3
Haigha
16m
If a project won't happen without a subsidy, then it's not a positive net present value project, and therefore destroys wealth rather than creating it.
BGC2019
2h
Definition of insanity...
1
CalW
2h
Bubble, bubble, toil and trouble. It's like the snowball rolling down the hill. It keeps getting bigger and bigger - but until it actually hits the bottom and bursts, most people neither notice nor care.
2
LysanderMcgrath
2h
The FHFA is also participating in the Biden administration’s plan to “address racial bias in home valuations,” which aims to increase home appraisals in minority areas."
When you artificially inflate appraisals, you just asking for additional equity loans and then loan defaults.
You can't get rid of true market signals and replace them with government invented prices. It will always come back to haunt you. Always.
5
howard_goldstein
2h
Things are going according to plan. Government owned mortgages crowd out the private sector. Government medical care crowds out private sector health. More power resides in Washington DC. Rent seeking is the way to stay in business.
2
Paul_E
3h
Another warning, which will of course be ignored.
2
craig_hoffman
3h
We’ve done this before! Billy boy made mortgages easy to get and we had a huge real estate and financial crash when unqualified borrowers stopped paying. I guess Joe will just forgive their debts and everything will be good.
5
eric_stone
3h
Bro, is your given name Truly 'Judge Glock'?
If so, you had AWESOME parents, though I wonder how harsh the schoolyard bullying was.
2
Boozygoose
3h
He kinda looks like he could handle the schoolyard.
https://manhattan.institute/person/judge-glock
2
SpinDelete
3h
The FHFA is also participating in the Biden administration’s plan to “address racial bias in home valuations,” which aims to increase home appraisals in minority areas. It has ordered the companies to increase fees for low-risk borrowers and decrease fees for high-risk borrowers...
And that my friends, is your a-- backwards, Biden admin way of punishing the hard working people and rewarding poverty. The real racists are right before your very eyes. If this admin really cared about the minorities, they would require fiscal responsibility classes in schools instead of forced "trans" material.
"increase home appraisals in minority areas" will only cause another disaster i.e. home repos, load defaults and homelessness.
You can give them a fish and continue on or you can teach them how to fish and be independent.
7
LastOldPhoneGuy
4h
Sounds like the FHFA is racist. They determine who to help and who not to help based on skin color. Solid democrat thinking.
10
VaughnMises
4h
If we were to embrace as axiomatic that "Government can't do anything right." and were to limit government activity only to those functions which, alas, only government can do ( a necessary evil), we would be far better off.
12
Poor_Yorick
4h
All government decision making induces moral hazard because it’s always someone else’s money.
10
GeoWPeck
34m
There is no generosity in government spending other people's money to do most anything...
Especially when taxation is something that ultimately begins at the end of a gun barrel.
Auto bot loading Freddie - 500k vol above Fannie ...
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