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LIES* http://financialservices.house.gov/uploadedfiles/financial_choice_act-_executive_summary.pdf
Read the Choice act and it says nothing about FHFA or the ability for Watt to be fired. they are replacing the CFPB (to be named CFOC) to a 5 person panel with congressional over sight.
bahahahaah
do me a favor and read the next paragraph
without even looking they dont have to disclose OTC shares
Today Steven Mnuchin " Irresponsible to leave fannie and freddie as is for the next four years. we need to figure out how to reform them. ON THE ONE HAND I THINK IT IS VERY IMPORTANT THAT WE HAVE AMPLE LIQUIDITY FOR MORTGAGES. HAVING SECURITIZATION AND AMPLE MORTGAGE CAPITAL IS IMPORTANT TO US....AT THE OTHER EXTREME WE WANT TO MAKE SURE WE DON'T PUT THE TAX PAYERS AT RISK... WE WILL LISTEN TO DIFFERENT GROUPS AND MAKE A RECOMMENDATION TO THE POTUS ON WHAT THE SOLUTION SHOULD BE"!!!
Pretty good news from Mnuchin today
exactly, IMO he would of said wind them down at some point if that was his plan. the previous admin was not shy about that at all.
I read the whole thing last night and it said he alone can stop the NWS specifically. id have to go back and find it again but im at work and need to cover my losses on this F#$#$ing stock
that is not true at all, if you read the 10k he has power to stop the NWS immediately
10k filings state that the only way for FNMA to be put into receivership is if they cant meet their debt obligations for 60 days. Being that FNMA has 117b line of credit from the treasury, a debt ceiling crisis (you might see all over the news today bc of donald trump) would be the only way they could not meet this obligation. *there are a couple of other ways that Watt could put us in there but none are realistic with todays GSE model)
Having said that the threat of the GSE's going under and common and preferreds being worthless can really only come from Mnuchin and Trump wanting a total housing reform excluding FnF.(or including with just new stock or a new IPO or something to that affect)
My bet is that they wont issue new stock and keep the GSE's with their current guaranteed fees business model that seems to be working well.
did you read this from FNMA 10k filing?
why are you so optimistic on preferreds?
"We believe that in the event of a liquidation of our assets it is unlikely that there would be sufficient proceeds to make any distribution to holders of our preferred stock or common stock, other than possibly to Treasury as a holder of our senior preferred stock."
i thought you said the banks still own the mortgages after they sell them to FNMA
you are arguing with someone else about the asset portion. They buy and sell the mortgages and guarantee the payments. they retain some of the assets but most go into consolidated trusts where they earn the guarateed fees.
"We provided approximately $637 billion in liquidity to the mortgage market in 2016 through our purchases of loans and guarantees of loans and securities. This liquidity enabled borrowers to complete approximately 1,401,000 mortgage refinancings and approximately 1,122,000 home purchases, and provided financing for approximately 724,000 units of multifamily housing."
We have two primary sources of revenues: (1) the guaranty fees we receive for managing the credit risk on loans underlying Fannie Mae MBS held by third parties; and (2) the difference between interest income earned on the assets in our retained mortgage portfolio and the interest expense associated with the debt that funds those assets. Our retained mortgage portfolio refers to the mortgage-related assets we own (which excludes the portion of assets held by consolidated MBS trusts that back mortgage-related securities owned by third parties).
?Calculated as of the end of each period based on the number of single-family conventional loans that are 90 days or more past due and loans that have been referred to foreclosure but not yet foreclosed upon, divided by the number of loans in our single-family conventional guaranty book of business.
???Fannie Mae 2016 Form 10-K 4
Business | Executive Summary
???As shown in the chart below, in recent years, an increasing portion of our net interest income has been derived from guaranty fees, rather than from our retained mortgage portfolio assets. This shift has been driven by both the guaranty fee increases we implemented in 2012 and the reduction of our retained mortgage portfolio in accordance with the requirements of our senior preferred stock purchase agreement with Treasury and direction from FHFA. More than two-thirds of our 2016 net interest income was derived from the loans underlying our Fannie Mae MBS in consolidated trusts, which primarily generate income through guaranty fees. We expect that guaranty fees will continue to account for an increasing portion of our net interest income.
from their 10k filing.... how can you read that and assume they dont buy mortgages from banks?
"We operate in the secondary mortgage market. We support the liquidity and stability of the U.S. mortgage market primarily by securitizing mortgage loans originated by lenders into Fannie Mae mortgage-backed securities that we guarantee, which we refer to as Fannie Mae MBS. We also purchase mortgage loans and mortgage-related securities, primarily for securitization and sale at a later date. We use the term “acquire” in this report to refer to both our securitizations and our purchases of mortgage-related assets. We do not originate loans or lend money directly to consumers in the primary mortgage market."
you can actually look at their balance sheet and see 5T in liabilities and 5T in assets....
yes but he says it with such confidence that you want to believe him
good point, how does FNMA sell MBS if they dont buy them first.
thats not 100% true, We sell the mortgage to FNMA and the servicing rights to a 3rd party vendor.
FNMA buys the mortgages from the bank and converts them into bonds. they sell the bonds and pass on the money from homeowners to the owner of the bonds. They guarantee the payments on the bonds and if they cant the govt steps in with a line of credit to help.
what makes you think the bank owns them?
what he meant is that FNF guarantees the payments on the bonds/securities...if the well runs dry they are on the hook
no kidding, he is missing the whole point of FNMA. They are meant to provide banks with liquidity, this derives from the point of selling them the note to get it off their (the banks) books.
Mnuchin didn't say he would privatize FNF bc he is going to keep them GSE's. He (govt) has to guarantee the securities or the bond market will go haywire.
IF he planned on winding down FNF his language would be very different. The fact that he has the word play and ambiguous language means to me that he is going to restore them to pre-2008 level with stricter regulations.
Now that the debt ceiling has been officially raised, housing reform will finally happen.
Matt Gottlieb from Seeking Alpha sure thinks we will be over $5 PPS soon....
can you cut and paste?
what made you think that? I really dont know but the twitter universe seems to think the 11k docs will be released bc of this.
They DID have the ability to pick and choose the documents....now that we have FOIA they would have to mark these documetns classified. these are not a matter of national security so.....11k here we come
by a vote of 425-0....hmmm not sure if this is good or bad. Will all the 11k docs be released now? or does a corker have an ace up his sleeve
The NWS violates Delaware corp law....the by laws say FNMA must conform to Delaware corp laws.
not in love with his IPO comment
Thanks to Jim Hodges @ValuInvstrTodayhttps://t.co/4DUZuVhftc#fanniegate pic.twitter.com/dflUx6xOHU
— frbronfen (@frbronfen) April 27, 2017
Not only are FNMA longs going to make millions but Trump just reduced the capital gains tax to zilch and we get to keep all the profits.....congratulations everyone :)
This should be an interesting week to say the least....tomorrow for sure