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"In the Antelope Valley and Inland Empire – north and east of Los Angeles, respectively – rents climbed about 16% from April of last year through this June, according to data compiled by Marcus & Millichap, a real estate brokerage and consulting firm. In downtown Los Angeles, rents fell 8.1% during the same period. In all three areas, the prices investors are paying for apartments have jumped since the start of the pandemic."
https://www.bloomberg.com/news/articles/2021-10-01/charlie-munger-s-timely-apartment-bet-began-with-hebrew-bible
“It’d be nice if I were Mother Teresa and did something I didn’t like doing, because I’m a noble soul,” Munger said. “But my life is organized so that time after time, what works for my pocketbook works for every moral teaching that I’ve been taught.”
I think in order for the gses liabilities to be included on the gubmints balance sheet they need to own at least 80% of a corporation.
Even CBO recognizes the defacto Nationalization of the twins and recommends they be included on the federal balance sheet.
Moody's, Fitch, and Standard & Poor's could easily say that CONSTRUCTIVELY THE GOVERNMENT HAS TOTAL CONTROL OF THE CORPORATIONS AND THEIR PROFITS! Hence their LIABILITIES BELONG ON THE FEDERAL BALANCE SHEET!
Look at the bright side Clark, the current generation skips the onerous 40% to 50% FEDERAL DEATH TAX and the next generation or charity gets the upside!
The Impact of Fiscal Policy on Housing in the U.S. @SSRN https://t.co/xi5Q0pveNO pic.twitter.com/TIBWcDUoXv
— Mark Calabria (@MarkCalabria) September 30, 2021
This is great, "Meanwhile WHERE IS MOODY'S, FITCH, AND STANDARD & POOR'S?"
Fantastic stuff, how come the WSJ (owns/leases Realtor.com and their 'editorial board' refuses to alienate some of their biggest revenue generators - the financial establishment), Market Watch, Bloomberg, The Financial Times, The Economist, Forbes, et. al CAN'T FIGURE THIS OUT?
THIS DEFACTO NATIONALIZATION MEANS THE US GOVERNMENT OWNS THESE FORMERLY PRIVATE CORPORATIONS AND THEIR LIABILITIES BELONG WITH THE OWNER, THE UNITED STATES GOVERNMENT!
"Since when does the government make loans which the borrower is never allowed to repay."
"Uncle Sam is now a Mob banker!"
"Never in the history of conservatorships has this been allowed, but thanks to SCOTUS, that is now the law of the land."
SCOTUS with the Collins decision has unwittingly just exacerbated and confounded the next inevitable financial crisis where government assistance would be needed to SAVE HARD WORKING AMERICANS JOBS AND HELP WITH AN IMPERILLED ECONOMY. Board of Directors will REJECT HAVING THE GOVERNMENT PROVIDE ECONOMIC ASSISTANCE TO THEIR ENTITY AND WILL SLASH COSTS TO THE BONE INCLUDING LABOR COSTS!
NICE JOB SCOTUS!
"Who borrows $151 Billion and pays it off in 18 months? SOMEONE WHO NEVER NEEDED IT TO BEGIN WITH!"
So true Gary, so true!
"According to PennyMac, for a one-unit property a borrower could receive $625,000, an increase of almost $75,000 from the maximum loan limit dictated by the Federal Housing Finance Agency (FHFA)."
https://www.housingwire.com/articles/pennymac-uwm-raise-conforming-loan-limit-ceiling/
Release from conservatorship is based on capital levels, not earnings
FnF are in such a huge core capital hole that retaining earnings alone will take around 20-22 years to hit regulatory capital levels.
Well, the Supreme Court said the NWS is authorized by HERA.
Right now it seems us current shareholders are much more reliant on the carrot of Treasury monetizing the seniors and warrants than the stick of the lawsuits.
"Signed contracts to buy existing homes increased 8.1% month to month in August, according to the National Association of Realtors.
Buyers encountered higher inventory and slightly more favorable prices.
Analysts were expecting a 1% monthly rise. Signings were still down 8.3% compared with August 2020."
https://www.cnbc.com/2021/09/29/pending-home-sales-surged-in-august-after-two-months-of-declines.html
I think BA and Pags are likely to be viewed by many prospective investors in the twins with new money looking for a home, to be seen as 'the boy who cried wolf' too many times!
BA and Pags (and many of us) have been in absolute disbelief at the Federal Judiciary's inability to uphold private property rights and 400+ years of conservatorship legal precedence.
Companies posting these types of earnings do not need a recap. As we know, what they need is for their abusive 'conservator' to remove its boot off the neck of the companies and follow HERA!
Will that ever happen? Don't know.
Maybe Uncle Suggy will become bored with shaking down the 'evil mortgage banksters/hedge fund guys' and give them their toys back (but they won't be the same toys they had 13+ years ago).
https://www.housingwire.com/articles/us-home-prices-hit-record-level-again/
Less of a need for an instant recap.
Nice! 3Q21 earnings should be a helpful contribution to retained earnings.
9/28/2021
FHFA House Price Index Up 1.4 Percent in July; Up 19.2 Percent from Last Year
Washington, D.C. – House prices rose nationwide in July, up 1.4 percent from the previous month, according to the latest Federal Housing Finance Agency House Price Index (FHFA HPI®). House prices rose 19.2 percent from July 2020 to July 2021. The previously reported 1.6 percent price change for June 2021 was revised upward to 1.7 percent.
For the nine census divisions, seasonally adjusted monthly house price changes from June 2021 to July 2021 ranged from +0.8 percent in the West North Central division to +1.9 percent in the South Atlantic division. The 12-month changes ranged from +15.6 percent in the West North Central division to +25.6 percent in the Mountain division.
"Record appreciation rates for the U.S. continued in July," said Dr. Lynn Fisher, FHFA's Deputy Director of the Division of Research and Statistics. "Although the monthly pace of increase slowed in most Census Divisions in July, four areas experienced year over year growth rates in excess of 20 percent and all saw annual gains in excess of 15 percent."
The FHFA HPI is the nation's only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.
FHFA releases HPI data and reports on a quarterly and monthly basis. The flagship FHFA HPI uses nominal, seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac. Additional indexes use other data including refinances, FHA mortgages, and real property records. All the indexes, including their historic values, and information about future HPI release dates are available on FHFA's website: https://www.fhfa.gov/HPI.
FHFA will release its next HPI report on October 26, 2021 with monthly data through August 2021.
How ironic! The WSJ Editorial board knows who butters their bread and while property rights and the rule of law are very important to them, they don't want to print any story that could upset the financial establishment and their lucrative advertising dollars.
Even the WSJ, (who b*tched and moaned very loudly and often about the Eviction moratoriums) which has a financial interest in Realtor.com, IS STILL PEDDLING THE 'EVIL HEDGE FUND GUYS' ARE THE ONLY WINNERS HERE WITH A FAVORABLE SHAREHOLDERS OUTCOME AND NOT PROPERTY RIGHTS.
I suspect that the editors of the WSJ believe it's more important for their financial interests to keep the governments boot on the GSES neck than to dig deeper on this abomination of the US GOVERNMENT TAKING BILLIONS VIA THE NWS (NOW LP).
Whatever's left, Uncle Suggy will take 1/2 of when he passes away, if Uncle Suggy doesn't get it BEFORE....
The average low and moderate income American hasn't got a clue that the $1.5T 'infrastructure bill' contains a 10 basis point annual tax or approximately $100 annually for EVERY $100K BORROWED DURING THE LIFE OF THEIR 30 YR FRM!
Do you think Uncle Joe will mention this when he is signing the bill?
I'm sure the 'average American' hasn't a clue as to what has happened here. Let's hope we finally get a trial somewhere exposing the federal governments bad acts!
"Any attempt to take property without consent is morally wrong and will be resisted in myriad ways by those enslaved or otherwise expropriated. “Ideal” socialism systematizes legalized theft and hence will be resisted in ways large and small, rendering it less productive than systems that recognize the way humans naturally cognize property."
https://www.aier.org/article/the-property-instinct-and-the-utter-futility-of-socialism/amp/
I think this entire 13 year plus 'conservatorship' speaks volumes as to the great dsyfunction of our US Government, their lack of respect for its citizens Constitutional Rights, and their misplaced desires of greed and retribution, sad!
More US Government abuse of private property rights? "Intellectual property is what created the thriving life sciences sector that was ready when the pandemic hit," Bourla said. "Without that, we wouldn’t be here to discuss if we need boosters or not because we wouldn’t have vaccines."
https://www.foxbusiness.com/healthcare/pfizer-ceo-cdc-coronavirus-vaccine-ip-rights.amp
"I am glad to see that the capital requirements for the GSE's is being looked into. As we all know the cost of holding too much capital would have to be passed on to the cost of getting a mortgage. With the recent results of the Stress Test that was completed which looks at what a Severe Adverse Scenario would look like for the GSE's it is obvious that the prior proposed capital requirement that Mark Calabria drafted would require the GSE's to retain way too much capital for the amount of risk that is present. I encourage the new director of the FHFA to take into consideration the actual risk that the GSE's have so that we have them at a safe and sound capital level while at the same time allow the GSE's to provide the lowest cost mortgages possible which will allow them to fulfill the mission for which they were designed."
"Give me my company back to me now. Release it to me now. Thanks"
"Fannie Mae and Freddie Mac have been in conservatorship for 13 years, while making billions in net profits each quarter. The loan to the twins has been repaid, and as a result the warrants should be retired and the stocks relisted to the big exchange. Ending the conservatorship now is the right thing to do. The companies can be government controlled after being released from conservatorship."
"Many police, firefighters, and teachers' retirement funds have been holding GSE stocks and those people just cannot retire on time, according to plan because in the name of saving America mortgages crises caused by commercial banks/loan institutions not GSE. Those caused and put GSE in conservatorship have recovered and/or retired, but not those holding the GSE stocks retirement plans’ holders.
GSE is privately owned entities and government has no right/responsibility to take it over."
https://www.fhfa.gov//SupervisionRegulation/Rules/Pages/Comment-Detail.aspx?CommentId=15839
Norbert Michel, a director at CATO, must have called MC before he wrote the article. "...and the proposal is a clear signal that the administration wants to lower the overall capital requirements."
It would be fun if Norbert submitted a comment to the proposed new capital rule (with MC's assistance) and like MC ignored everyone's comments, Sandra L Thompson ignores his !
Are you and your wife still considering drafting/submitting a comment on the new proposed capital rule?
Remember, be civil !
Nice reply, Guido! I think many people in the multifamily industry are relieved that she eliminated and/or raised the caps, ESPECIALLY AS THE NATION FACES AN AFFORDABLE HOUSING CRUNCH.
What was MC's reasoning behind the multifamily biz cap, just to shrink the footprint of the gses/thwart their business purpose?
MC's latest retweet: "In the sciences, the authority of thousands of opinions is not worth as much as one tiny spark of reason in an individual man."
-- Galileo Galilei
https://mobile.twitter.com/MarkCalabria/
JB's TAX ON LOW AND MODERATE INCOME AMERICANS WITH THE NEW 10 BASIS POINT GUARANTY FEE. Bet he won't say that if he signs the $1.5T "Infrastructure Bill" into law.
No wonder Americans respect for politicians IS AT ALL TIME LOWS!
How many hard working low and moderate income Americans WOULD WANT TO PAY $400 EXTRA PER YEAR ON A 30 YEAR FRM TO HELP PAY FOR NEW INNER CITY ELECTRIC BUSES REPLACING EXISTING BUSES?
https://www.housingwire.com/articles/homeowners-gain-2-9-trillion-in-equity-in-q2-2021/
CoreLogic report shows a 29.3% year-over-year increase in equity
"Homeowners with mortgages gained $2.9 trillion in equity in the second quarter of 2021, a 29.3% year-over-year increase, according to a new report by CoreLogic released Wednesday. This marks an average gain of $51,500(!) per borrower since the second quarter of 2020"
3 years will be when he sells his "free lottery tickets"
Rob Zimmer hits the nail on the head with this upcoming tax increase on lower and middle income Americans (e.g., 10 bps over 30 yrs on a $300k mortgage = $4,500.00!) which is buried in something innocuously termed a bipartisan Infrastructure Bill: "Even today, there seems no end in excess premiums. In the current bipartisan infrastructure bill, Congress balked at raising user fees on drivers, but enthusiastically increased user fees on young homebuyers — even those not owning cars. And it gets worse: because the fees are applied to Fannie and Freddie mortgages only, which have mortgage limits, wealthy families taking out the largest mortgages will pay nothing. Now, the Baby Boomers running the government and most sectors of America today have their comfortable homes already. They have plenty of built-up home equity and have refinanced many times over the years to have ultra-low mortgage coupons as well. Most don’t have need today of Fannie, Freddie, FHA, or VA mortgages — if they need a mortgage at all."
https://www.fanniemae.com/newsroom/fannie-mae-news/multifamily-protections-renters-extend-indefinitely
Press Release
Fannie Mae Extends Multifamily Protections for Renters Indefinitely
September 24, 2021
Multifamily Borrowers Remain Eligible for COVID-19-related Forbearance
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced its multifamily COVID-19 forbearance program has been extended indefinitely to provide continued support for Fannie Mae-financed multifamily property owners and renters in multifamily units experiencing financial difficulties due to COVID-19. The program, which requires landlords to suspend all evictions for renters unable to pay rent during the forbearance period, was formerly set to expire on September 30, 2021.
"As financial and economic uncertainties around COVID-19 persist, Fannie Mae is committed to providing continued forbearance options for Fannie Mae multifamily borrowers," said Michele Evans, Executive Vice President and Head of Multifamily. "This will allow for the continuation of essential tenant protections to help keep renters in their apartments as the recovery process continues."
For any Fannie Mae-financed multifamily properties with a new or modified COVID-19 forbearance plan, the property owner must agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance and inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods, which include:
Allowing the tenant flexibility to repay back rent over time and not in a lump sum;
Not charging the tenant late fees or penalties for non-payment of rent; and
Giving the tenant at least a 30-day notice to vacate.
Here to Help
Since March 2020, Fannie Mae has taken a number of actions to help renters facing financial hardship due to COVID-19, including extending eviction protections to multifamily renters when the property owner received a forbearance and announcing a Renters Resource Finder tool.
These and the many other resources, including KnowYourOptions.com, that we make available are part of our ongoing Here to Help education effort, aimed at helping homeowners and renters impacted by COVID-19 understand the options available to them. For renters, KnowYourOptions.com provides straightforward information to understand rent relief and assistance options and to understand the available tenant protections.
Renters also have access to Fannie Mae’s Disaster Response Network, which offers free assistance from U.S. Department of Housing and Urban Development-certified housing counselors who can help navigate financial challenges caused by COVID-19, such as information and guidance on accessing federal and state housing assistance, unemployment benefits, nutritional assistance, and other available programs. The Disaster Response Network can be accessed from the Renters Resource Finder on KnowYourOptions.com, or by calling 877-833-1746.
Freddie:
As of Freddie Mac’s most recent report, there are 304 forborne securitized loans, representing about 1.1% of Freddie Mac’s total securitized loans as measured by unpaid principal balance. In recent months, very few loans have started a new forbearance agreement, and no new forbearances were started in August, a first for the program.
FHFA Extends Availability of COVID-19 Multifamily Forbearance
??Washington, D.C. — Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will continue to offer COVID-19 forbearance to qualifying multifamily property owners as needed, subject to the continued tenant protections FHFA has imposed during the pandemic. This is the fourth extension of the programs, which were set to expire September 30, 2021. On October 1, 2021, FHFA will allow the Enterprises to continue offering COVID-19 forbearance to qualified multifamily owners, unless otherwise instructed by FHFA.
"Given the uncertain nature of this pandemic, FHFA is taking further action to protect renters, property owners, and the mortgage market," said Acting Director Sandra L. Thompson.
Property owners with Enterprise-backed multifamily mortgages can enter a new or, if qualified, modified forbearance if they experience a financial hardship due to the COVID-19 emergency. Property owners who enter into a new or modified forbearance agreement must:
Inform tenants in writing about tenant protections available during the property owner's forbearance and repayment periods; and
Agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance.
Additional tenant protections apply during the repayment periods. These protections include:
Giving tenants at least a 30-day notice to vacate;
Not charging tenants late fees or penalties for nonpayment of rent; and
Allowing tenant flexibility in the repayment of back-rent over time, and not necessarily in a lump sum.
FHFA may extend or sunset its policies based on updated data and the impacts of COVID-19. Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines.
Freddie:
As of Freddie Mac’s most recent report, there are 304 forborne securitized loans, representing about 1.1% of Freddie Mac’s total securitized loans as measured by unpaid principal balance. In recent months, very few loans have started a new forbearance agreement, and no new forbearances were started in August, a first for the program.
"In Sunday’s election, voters will decide whether the government should take control of apartments from the biggest landlords to protect affordable housing."
https://www.bloomberg.com/news/features/2021-09-23/berlin-referendum-targets-city-s-corporate-landlords
PROPERTY RIGHTS DO THEY EVEN EXIST ANYMORE?
"That campaign is a grassroots fight to transfer rental properties owned by landlords with more than 3,000 units to public entities. Activists have succeeded in getting a referendum — advisory rather than binding — on the ballot for Sept. 26, the same day as Germany’s national and local elections. If passed — by no means a foregone conclusion — that proposal could mean 226,000 apartments going into public ownership. As cities around the world grapple with similar affordable-housing crises, Berlin’s electorate would be the first to vote on possible measures to wrest back properties from private landlords."
"Polls suggest that on Sunday a majority of Berliners will vote in favor of expropriation."
“Expropriation will only bring a redistribution of existing housing. It doesn't create a single additional apartment,” says David Eberhart, from the Association of Berlin-Brandenburg Property Companies, an industry group that represents the interests of around 350 private and cooperative housing companies in Berlin. "
You know the FHFA/UST has total control over this and given the size and profitability of their asset base there are alot of ways to get shareholders made somewhat whole. But it seems to me that for every dollar of capital retained on their balance sheet, the easier it will be to exit conservatorship.
How long will that take? I think the answer may be in the Houlihan, JP Morgan, et. al. recommendations as well as internal FHFA/UST documents.
But I would imagine that the dust needs to settle from all the litigation to determine EXACTLY WHERE THE PARTIES LEGAL RIGHTS ARE PRIOR TO EXITING THE CONSERVATORSHIP, and that could take awhile....