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Now there's a very good start to a winning in court...
Door number 4...
Investors Unite Welcomes Move by the Federal Housing Finance Agency to Retain Capital in the GSEs
Federal Housing Finance Agency Director Mark Calabria today announced the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac will be permitted to retain a combined $45 billion worth of earnings, effectively halting a policy in place since 2012 of diverting the GSEs' earnings to the Federal Treasury.
Investors Unite Executive Director Tim Pagliara issued the following statement:
“FHFA’s action to allow the GSEs to retain the capital they earn is a victory for taxpayers who have long been at risk for possible GSE losses due to the illegal net worth sweep. Director Calabria had it right when he said ‘the status quo is not an option.’ This is a milestone in ending the conservatorship and honoring the government’s commitment to GSE shareholders, taxpayers and perspective homeowners.”
Housing reform needs to be a part of this...not GSE reform...two different animals...
Combo bond of residential with commercial...during the 2008 crisis commercial didn't take a hard of a hit as did residential...so they're combining that in hopes of more "skin in the game" during a crisis...
Too big to fail is not big enough so make it bigger to fail? Don't think that's a good idea...
Just a penny short...what a coincidence...or is it?
They just need to go whale watching...
Whoohoo! Confirmed Baby!
Even in 2017 Ginnie Mae needed another government bailout, but they won't say it's a bailout since they're a government entity explicitly back by the government and tax payer's money...see link below...
https://www.housingwire.com/articles/41383-watchdog-ginnie-mae-wasnt-ready-for-nonbank-mortgage-lending-boom
Written by none other than John Carney blaming government regulations not Gse's...my how times have changed...
How The Government Caused The Mortgage Crisis
John Carney
Oct. 16, 2009, 6:17 AM
It wasn't greed that caused the mortgage mess. In large part, the mess was the product of government policies designed to increase homehownership among the poor and ethnic minorities.
Today Peter Wallison points out how Fannie Mae, Freddie Mac and the FHA created a demand for bad mortgages that encouraged mortgage brokers to generate millions of them.
From the Wall Street Journal:
Mortgage brokers had to be able to sell their mortgages to someone. They could only produce what those above them in the distribution chain wanted to buy. In other words, they could only respond to demand, not create it themselves. Who wanted these dicey loans? The data shows that the principal buyers were insured banks, government sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac, and the FHA—all government agencies or private companies forced to comply with government mandates about mortgage lending. When Fannie and Freddie were finally taken over by the government in 2008, more than 10 million subprime and other weak loans were either on their books or were in mortgage-backed securities they had guaranteed. An additional 4.5 million were guaranteed by the FHA and sold through Ginnie Mae before 2008, and a further 2.5 million loans were made under the rubric of the Community Reinvestment Act (CRA), which required insured banks to provide mortgage credit to home buyers who were at or below 80% of median income. Thus, almost two-thirds of all the bad mortgages in our financial system, many of which are now defaulting at unprecedented rates, were bought by government agencies or required by government regulations.
The role of the FHA is particularly difficult to fit into the narrative that the left has been selling. While it might be argued that Fannie and Freddie and insured banks were profit-seekers because they were shareholder-owned, what can explain the fact that the FHA—a government agency—was guaranteeing the same bad mortgages that the unregulated mortgage brokers were supposedly creating through predatory lending?
The answer, of course, is that it was government policy for these poor quality loans to be made. Since the early 1990s, the government has been attempting to expand home ownership in full disregard of the prudent lending principles that had previously governed the U.S. mortgage market. Now the motives of the GSEs fall into place. Fannie and Freddie were subject to "affordable housing" regulations, issued by the Department of Housing and Urban Development (HUD), which required them to buy mortgages made to home buyers who were at or below the median income. This quota began at 30% of all purchases in the early 1990s, and was gradually ratcheted up until it called for 55% of all mortgage purchases to be "affordable" in 2007, including 25% that had to be made to low-income home buyers.
The guy writes this article how Yoda would write it...believe in the force, you must...lol
Wall Street votes for Freddie/Fannie single security: WSJ
The proposed single mortgage-backed bond for Freddie Mac (OTCQB:FMCC) and Fannie Mae (OTCQB:FNMA) cleared its last hurdle when the Securities Industry and Financial Markets Association--Wall Street's largest trade group--voted for the new security, the Wall Street Journalreports.
The new bond will bring together two products that currently are issued separately by the two government-sponsored enterprises. It's expected to debut in June as part of a revamp to the $5T market in bonds guaranteed by Fannie and Freddie.
Fannie and Freddie, combined, back about half of the U.S. mortgage market.
Eventually it could lead to a larger overhaul of the housing-finance system and bring in new competitors that could also issue bond son the single-security platform.
ETFs: MORL, REM, MORT, DMO, TSI, PGZ, JLS, CMBS, FMY
Eventually it could lead to a larger overhaul of the housing-finance system and bring in new competitors that could also issue bond son the single-security platform.
ETFs: MORL, REM, MORT, DMO, TSI, PGZ, JLS, CMBS, FMY
Highs in gse's...highs at Costco...highs at BK...and highs on.....
You're already getting lots of highs...
Confirmation of not combining the entities...
I said the same thing when I used Vidal Sassoon back in the days...
Moderator was trying to give Tim the last word cause time was running out but gassy still kept interrupting...rude...
It's what you call a last minute scare tactic...more fear mongering to suppress the stock as long as he can
Whatever...you said it'll go under 2...makeup your mind...
My...so irritable today...
Gee...don't be so hard on the GUY...lol
Where do they get this idea that they have to wait until Calabria has to be voted in...Otting with the consent of Treasury can make changes including recap and release from conservatorship...De Marco did what he wanted without Watts...the same will apply for Otting...
"Mr. Mnuchin has reimbursed Mr. Milken for the cost of the flight, the spokesman said, but did not disclose the amount."
It's just another Milliken Institute trying to put in their 2 cents on reform that nobody cares to hear...
For some reason it just seems like they're going to use Otting to start the release process so that Calabria can just continue the pattern of gse rehab once confirmed...it was already in place when I got here...just like how watt boy played it off...except it's done by Trump...
It's defying gravity...lol
You can't cash in on collateral when the original debt is paid back (official testimony in front of Congress)...
When you're under oath...it's considered a fact...hence under oath...
It was said under oath...
It's stated in front of Congress that the dept is paid in full...you must have missed out on the hearing...
All this nonsense talk about eliminating preferred and commons...debt is paid back...i can see this if the debt was not paid back but the gse's have paid back plus 10%...let's move on to the next topic...how to infuse private money backstop while in government hands and putting back gse's to the rightful owners...the shareholders...
The capital is already given to Treasury as a holding pot. Whichever plan they use, the capital will be used as an inevitable backstop...the excess payments doesn't just go away just because the government wants to use the money for governmental projects...they record shows that the bailout funding was already paid back in full...
Mnuchin didn't attend either...
How were the Gse's principal contributors to the financial crisis?...that's not what the judges said...they don't even make loans...
10 years after the last recession and they're still generating billions in income...how long must a company continue while all profits are taken before it's determined that they're flawed?...most company fail within 3...
If they were flawed...congress would have acted more quickly then they have been...the fact that they're not leaves them as status quo...why fix something that's not broken...why not just reap the profits instead...
No reform was not and is still not required...you reform something to prevent or fix what is broken...when the gse's are solvent and still is...then they have funds to cover the losses which is what they were made to do...to prevent another depressions...some of you have forgotten why the GSE's were made to begin with...or just may not know...there are still flaws with the ever changing times and laws, but that doesn't imply that the GSE's are flawed by any means...