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I do recognize this quote from an old article.
The exit is approaching much sooner.
I provided with two links .
One is from the past.
And other link is to the future of 2024.
These two links are connected together to form into one straight line.
You know how to talk but you don't know how to think.
https://247wallst.com/banking-finance/2020/05/28/fannie-mae-might-become-a-dividend-payer-again/
Quote "With tens of billions of new capital coming to effectively privatize these GSEs, is it possible that one or both of the future Fannie Mae and Freddie Mac will be able to pay dividends to their shareholders? Nomura/Instinet’s Matthew Howlett believes that the company will be capitalized and he sees at least Fannie Mae paying a dividend."
I thought that it would be helpful to share information with you.
You and I are in the same boat. Do not expect so much from me. You should best do your own part of dd to help me back so we can help each other
Remember the dividend will be raised from quarter to quarter depending on the earnings.
There is something to consider and ask ourselves of why paying dividend to common stock in utility model.
Although common stock is in a low class, the mass selloff upon relisting to NYSE CAN ALSO CRASH both FnF and the entire market just like in 2008.
Entire market can collapse in both ways if :
1. Mass selloff in primary mortgage market , common stockholders.
2. Mass selloff In secondary mortgage market, bondholders
For 15 years in conservatorship, do you think that all stockholders will continue to hold after relisting.?
No
That is why the utility with the rate of return in dividend for common stock is the best solution
Usually the dividend will be raised from time to time based on earnings per quarter
Dividend will kick in year 2024 at $0.28 which is equal to $0.07 per quarter https://markets.businessinsider.com/stocks/fnma-stock?miRedirects=1
Debt ceiling debate put Fannie and Freddie investors in a huge upside.
Both cases of cfpb and ftc helped to navigate illegal conservatorship cases into the right direction.
Bill ackman comments on Fannie Mae and Freddie
https://www.quotemedia.com/portal/news?qm_symbol=Fnma
Mtg = dividend at $0.10 per share
Agm = dividend at $1.10 per share
Fnma = dividend is ?
Fmcc = dividend is ?
Why is now an affordable housing Biden top priority?
It's to complete the mission of conservatorship as required by hera.
Action of svb is causing a miracle to grow.
In fact big Ramaswamy/Trump backers such as VC Peter Thiel helped trigger the collapse by leading the panic withdrawals by major VC backers of SVB clients—on top of the 2018 regulatory rollbacks led by then-President Trump and Kevin McCarthy.
The word "dividend" was not used.
Utilities with the rate of return for shareholders.
We are preparing the enterprises to adjust to supervision in a way that they would be regulated outside of conservatorship,” Thompson said during an interview with Dennis Shea, head of the Bipartisan Policy Center’s Terwilliger Center for Housing Policy.
The March 31 event covered several topics with Thompson outlining what was on the horizon for FHFA and the GSEs. Housing affordability and closing the racial gap in homeownership were among the issues being discussed, as well as the longstanding conservatorship relationship, which was a large part of the conversation.
Big event in March !!
Fannie and Freddie will become public utilities with the dividend payout from $0.15 to $0.40 per share every quarter.
Fannie and Freddie will become public utilities with the dividend payout from $0.15 to $0.40 per share every quarter.
I expect the dividend payout for common between $0.15 to $0.40.
Executive summary gses : a viability a public utility
Will Fannie Mae and Freddie become a single utility?
This is true.
NAFCU?
How powerful is NAFCU?
Will congress listen to NAFCU?
What does NAFCU have to do with Fannie and Freddie?
There is much more to know, just because it is an old article.
https://filene.org/learn-something/reports/gse
NAFCU = national association of federal credit Union.
This NAFCU was also placed into conservatorship in 2009 in relating mortgage crisis.
https://www.cutoday.info/Fresh-Today/FHFA-Treasury-Announcement-Means-GSEs-to-Remain-in-Conservatorship-At-Least-in-Short-Term
Global recession!! Big techs Begin to lay off thousands across the globe."
Oh yes they are . . . . in a big way!
So housing market is another way to hedge against the global recession.
Global recession!! Big techs Begin to lay off thousands across the globe.
Surging inflation, rising interest rates, and stock market volatility have led many investors to assume that a recession is coming. The alarms have been sounding for a while now, particularly after gross domestic product (GDP) declined for two consecutive quarters in the summer of 2022.
Release Fannie and Freddie is one way to hedge against the global recession.
"Let's finish the job of unfinished business"
Ahf = affordable housing fund
Since 2014 ,This ahf from Fannie and Freddie flows to :
1. Housing trust fund
2. Capital magnet fund
Then from 1 and 2 , these two funds flow to every states and local communities and other developers
Yes it is true that this article is old but the money flows from fnf every years is not old.
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FINANCE
Next Generation of GSEs
Questions emerge about the future of Fannie and Freddie as well as their roles in affordable housing
By Jerry Ascierto
Fannie Mae and Freddie Mac have played a vital role in the affordable housing world, but the government-sponsored enterprises (GSEs) are an endangered species.
As Congress begins to remake the nation's housing finance system, one of the biggest issues is to what extent the next generation will play in the affordable housing arena.
All options, at this point, are on the table. “I don't think anything is immune from being reengineered,” says Sheila Crowley, president of the Washington, D.C.-based National Low Income Housing Coalition (NLIHC). “The whole system, including the Federal Home Loan Banks and the Federal Housing Administration (FHA), is up for review at this point.”
The right wing in Congress wants a fully private market and to make affordable housing efforts the FHA's domain. The left wing wants the next generation of government-chartered entities to concentrate only on affordable housing and remain largely in the government's control. But a hybrid system incorporating elements of both is much more likely.
In analyzing proposals—from the Cato Institute, the Center for American Progress, the Mortgage Bankers Association (MBA), the National Multi Housing Council (NMHC), and the National Apartment Association—a way forward is emerging. Here are three general points of consensus that will likely survive the debate.
1. Multiplicity
The housing finance system of tomorrow will include several new government- chartered entities, built on the ruins of the GSEs. These entities will all be private companies, capitalized with private equity. As such, the entities can fail like any other private company. But a regulator modeled on the Federal Deposit Insurance Corp. will be able to put them into conservatorship if necessary.
Having several entities ensures that none of them are too big to fail, and it might bring more attention to underserved parts of the market, such as small properties. While Fannie Mae has a dedicated small loan program, Freddie Mac is less interested in anything small. Yet a large portion of the nation's multifamily stock needs loans of under $2 million.
“No one at the national level, neither Fannie, Freddie, nor the FHA, has been able to address financing for smaller properties,” says Buzz Roberts, a senior vice president for policy at the Local Initiatives Support Corp. “It's great if Fannie can go down to $1 million, but we need more than just one way to go. Competition encourages innovation and better pricing.”
The fledgling entities will be hungry to build up a market niche, Roberts says, and if an entity is a fraction of the size of Fannie Mae, small loans might look like a more attractive business line.
But having multifamily-specific entities is unlikely. “Capital markets like the brand comfort of the much larger market that is single-family,” says Sarah Rosen Wartell, executive vice president for the Washington, D.C.-based Center for American Progress. “So, if you take the rental market and put it in separate institutions, you actually may increase the cost of capital.”
2. Government guarantee
These chartered mortgage issuers will likely have access to an explicit government guarantee for the securities they issue, much like the Ginnie Mae structure of securitizing FHA-insured loans. And that guarantee will have a few strings attached to it, namely a public mission and a price tag.
“More of the loans will be securitized, and there will be some public mission tied to it,” predicts David Cardwell, vice president of capital markets for the NMHC. “Luxury properties will probably not be looking to the GSEs the way they are today. But how you define luxury is going to be the $64,000 question.”
The NLIHC naturally hopes to see deeper affordability goals than were previously imposed on the GSEs. The lowest income level the GSEs are required to serve is 50 percent of the area median income (AMI). “That's all well and good, but there's no shortage of rental housing for people at 50 percent of AMI and above,” says Crowley. “The shortage is for 30 percent of AMI and below, and in some markets, between 30 and 50 percent.”
The government guarantee won't be provided for free: The entities will pay for it in the form of fees or additional basis points built into the interest rate of each loan. Those fees will be collected in a reserve to protect against losses, and some portion of those fees might be diverted to support affordable housing initiatives.
The guarantee will help these entities provide countercyclical liquidity, to serve the market in good times and bad. When the rest of the market is healthy, the entities will see a reduced market share. And when the private market craters, the entities will scale up. Importantly, the guarantee would also ensure a lower cost of capital in times of illiquidity.
“It's possible, and almost very highly likely, that with industry support and public policy support, some kind of government guarantee for a preferred portion of the market will revive,” says Wartell.
3. Portfolio capacity
These entities will focus on securitization first and foremost. They will have very limited portfolio capacity, just enough to warehouse loans pre-securitization and to offer mortgages that don't have broad investor interest. As such, there may also be some level of government guarantee on the portfolio.
The GSEs have a wide range of products, not all of which can be securitized. This is particularly true in the affordable housing space, where tax-exempt bond credit enhancements, or forward commitments on tax credit properties, are still portfolio executions.
“There should be some portfolio availability for highly structured transactions, and specifically in the affordable multifamily sphere,” says Michael Berman, chairman-elect of the MBA and CEO of agency lender CWCapital. “But the total portfolio now is something like $1.5 trillion, and we don't even need a peppercorn compared to that.”
Miles to go
So much is still up in the air. Will the entities be existing companies or brand-new organizations? What level of government involvement is necessary to ensure liquidity and stability? How many entities will there be? Will they all do the same thing? Is it regional or national?
“The biggest question mark is the transition from here to there,” says Shekar Narasimhan, a managing partner of McLean, Va.-based Beekman Advisors. “Once we agree on the form, how long does it take to go from what exists today to that new form?”
ABOUT THE AUTHOR
?Jerry Ascierto
Jerry Ascierto is Editor at Large for the Residential Construction Group at Hanley Wood. Based in the New York City area, Jerry has been covering the multifamily and single-family industries since 2006. He can be reached at jascierto@hanleywood.com or follow him on Twitter @Jascierto.
Keywords:
Subject:
Affordable Housing
Mortgages and Banking
Government Entities
Loans
Demographics
Organization:
Fannie Mae
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Confusion is the best strategy in order to fulfill the affordable housing for all colors in 2023.
Fannie Mae and Freddie Mac’s regulator on Thursday directed the two government-controlled mortgage firms to begin setting aside money for an affordable-housing fund established in 2008, saying they are financially fit enough to do so.