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Seriously doubt September 30th amounts to anything but kicking the can down the road. Has the UST even assigned personnel to address housing finance reform?
https://finance.yahoo.com/news/selling-americas-local-landlords-moving-153524084.html
Thanks that's right! SEEMS LIKE FOREVER AND WITH NO END IN SIGHT! THIS IS THE MOST BIZARRE TEMPORARY CONSERVATORSHIPS I HAVE EVER SEEN!
As I recall, the government originally played it as a temporary fix and it has mushroomed into the biggest Nationalization on earth!
I think August 17, 2021 marks the 13th Anniversary of the Net Worth Swipe! According to the ACLU NO PERMIT IS NECESSARY TO PROTEST IN FRONT OF THE FHFA HQ!
https://www.acludc.org/en/know-your-rights/know-your-rights-demonstrations-and-protests
Thanks Guido, for what it's worth I sent a comment to my US Senator in opposition of the 10 YEAR 10 BASIS POINTS TAX ON HOUSING. It's pretty easy to do with the internet, the politicians have raided us enough!
Another 10 year tax on homeownership!
"The massive legislation would be funded, in part, by an extension of the 10-basis-point surcharge on guarantee fees assessed by Fannie Mae and Freddie Mac. The 10 bps, originally enacted to help pay for the 2011 Temporary Payroll Tax Cut Continuation, was scheduled to lapse at the end of September 2021."
https://www.housingwire.com/articles/freddie-mac-posts-3-7b-in-net-income-for-q2-2021/
Given that the SCOTUS said that the government can do whatever is in the FHFA OR THE PUBLIC IT SERVES BEST INTERESTS, THE OUTRAGEOUSLY EXCESSIVE CAPITAL REQUIREMENTS, AND THE INABILITY OF ANY OF THE FEDERAL CIRCUITS TO GROW A PAIR, THESE EQUITIES WON'T HAVE MUCH IF ANY VALUE UNTIL WE SEE SOMETHING POSITIVE COMING OUT OF THE ADMINISTRATION OR THE COURTS.
Here's the problem Mann, I can hear the phone call from the JB ADMINISTRATION right now: "Sandra L Thompson, you need to extend the Eviction moratorium on ALL $7.2T OF GSE MORTGAGES OR YOU ARE FIRED!"
Don't you want to know exactly how much the government is stealing from you each quarter !
I think Sandra L Thompson is keeping a tight leash on the Freddie Mac CEO and CFO, SHE DIDN'T ALLOW THEM TO TAKE ANY QUESTIONS.
Must be depressing for talented people to work for a company knowing they can't participate in its success, I know it is as a "shareholder", frickin gubmint awholes!!!!
"The eviction moratorium has faced numerous legal challenges, and landlords have criticized the policy, saying they can’t afford to house people for free or shoulder the country’s massive rental arrears."
https://www.cnbc.com/2021/07/29/white-house-calls-on-congress-to-extend-the-national-eviction-ban-.html
Per 10Q2Q21: "Litigation in the U.S. Court of Federal Claims
Reid and Fisher vs. the United States of America and Federal Home Loan Mortgage Corporation. This case was filed as a derivative lawsuit, purportedly on behalf of Freddie Mac as a nominal defendant, on February 26, 2014. The complaint alleges, among other items, that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking of private property for public use without just compensation. The plaintiffs ask that Freddie Mac be awarded just compensation for the U.S. government's alleged taking of its property, attorneys' fees, costs, and other expenses. On March 8, 2018, the plaintiffs filed an amended complaint under seal, with a redacted copy filed on November 14, 2018. The United States filed a motion to dismiss on August 1, 2018 and an amended motion to dismiss on October 1, 2018. The Court denied the United States' motion to dismiss on May 8, 2020 and granted plaintiffs' motion to certify the decisions for interlocutory appeal on June 11, 2020. The Federal Circuit denied the petition for interlocutory appeal on August 21, 2020. These proceedings are stayed pending a ruling on the Fairholme Funds appeals.
Fairholme Funds, Inc., et al. vs. the United States of America, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation. This case was originally filed on July 9, 2013 against the United States of America. On March 8, 2018, plaintiffs filed an amended complaint under seal. A redacted public version was filed on May 11, 2018 and adds Freddie Mac and Fannie Mae as nominal defendants. The amended complaint alleges, among other items, that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking or exaction of private property for public use without just compensation, and that by enacting the net worth sweep, the government breached the fiduciary duty it owed to Freddie Mac and Fannie Mae, and implied-in-fact contracts between the United States on the one hand and Freddie Mac and Fannie Mae on the other. The plaintiffs ask that plaintiffs, Freddie Mac, and Fannie Mae be awarded (1) just compensation for the government's alleged taking or exaction of their property, (2) damages for the government's breach of fiduciary duties, and (3) damages for the government's breach of the alleged implied-in-fact contracts. In addition, plaintiffs seek pre- and post-judgment interest, attorneys' fees, costs, and other expenses. The United States filed a motion to dismiss on August 1, 2018 and an amended motion to dismiss on October 1, 2018. On December 6, 2019, the Court dismissed the claims plaintiffs labeled as direct claims and denied defendant's motion to dismiss with respect to the claims plaintiffs labeled as derivative. Accordingly, derivative takings, exaction, breach of fiduciary duty, and breach of implied-in-fact contract claims remain. By order dated March 9, 2020, the Court granted unopposed motions by plaintiffs and defendant to certify the December 6 opinion for interlocutory review, modified its December 6 opinion to include the language necessary for an interlocutory appeal to the U.S. Court of Appeals for the Federal Circuit, and stayed further proceedings in the case pending the completion of the interlocutory appeal process. The Federal Circuit granted the petition for interlocutory appeal on June 18, 2020.
Perry Capital LLC vs. the United States of America, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation. This case was filed as a derivative lawsuit, purportedly on behalf of Freddie Mac and Fannie Mae as nominal defendants, on August 15, 2018. The complaint alleges, among other items, that the net worth sweep dividend provisions of the senior preferred stock constitute an unlawful taking of private property for public use without just compensation or an illegal exaction in violation of the Fifth Amendment, and that by enacting the net worth sweep, the government breached the fiduciary duty it owed to Freddie Mac and Fannie Mae, and implied-in-fact contracts between the United States on the one hand and Freddie Mac and Fannie Mae on the other. The plaintiff asks that it, Freddie Mac, and Fannie Mae be awarded just compensation for the government's alleged taking of their property or damages for the illegal exaction; damages for the government's breach of fiduciary duties; and damages for the government's breach of the alleged implied-in-fact contracts. These proceedings are stayed pending a ruling on the Fairholme Funds appeals.
At present, it is not possible for us to predict the probable outcome of the lawsuits discussed above in the U.S. District Courts and the U.S. Court of Federal Claims (including the outcome of any appeal) or any potential effect on our business, financial condition, liquidity, or results of operations. In addition, we are unable to reasonably estimate the possible loss or range of..."
MC said he "Stayed awake at night worrying about the gses being leveraged 1000:1" whereas skirt chaser Watt said he, "Didn't stay awake at night worrying about the shareholders."
Seems crystal clear DJT had a different vision on housing finance than BHO.
If the court puts the burden of proof on the federal government we may have an easier go at it. At this point I am disappointedly not expecting relief from the courts.
"These shares are your shares, these shares are MY shares, from California to the New York island..."
https://hnn.us/article/177412
This Judge is the Chief Judge of the entire 5th Circuit, I imagine that she might have a say so in which Judge is picked to hear the Collins case on remand, assuming it survives Uncle Sugars upcoming Motion to Dismiss. She was nominated by GWB and worked at her stepfathers insurance company before becoming a Judge.
https://en.m.wikipedia.org/wiki/Priscilla_Owen
Don't see Judge Atlas on the list of 5th Circuit Judges maybe I was thinking of Judge Jones in my previous post.
https://en.m.wikipedia.org/wiki/United_States_Court_of_Appeals_for_the_Fifth_Circuit
The nice thing about Judge Atlas is she was around in the RTC days and understands that these governmental interventions weren't suppose to be perpetual in nature.
https://www.cnbc.com/amp/2021/07/28/mortgage-rates-at-six-month-low-and-refinances-shoot-up.html
I think the main issue in Collins on remand is HOW WHERE THE SHAREHOLDERS DAMAGED (IF ANY) BY POTUS NOT BEING ALLOWED TO INSTALL HIS GUY ON DAY 1.
I would imagine that the 5th Circuit would allow the Collins Plaintiffs some expanded Discovery to obtain intra governmental communications involving this issue OR they may try to stop the case in its tracks. Has the federal government responded to the Collins Plaintiffs briefs or do you know when?
So the most likely outcome is zero relief from the courts, the status quo forever, and the gses becoming another branch of the federal government?
Seems undisputable that had MC been installed on Day 1 the gses would be much further along in the recap, relist, and release process! But will a federal Judge whose paycheck and pension IS the federal government ACTUALLY RULE AGAINST THE FEDERAL GOVERNMENT? Don't know!
I hear you! The whole thing is kind of hilarious in that the federal government created these special purpose entities in 1968 and 1970 with private capital AND as private profit making corporations but decided to Nationalize them on August 17, 2012 as they were on the verge of escape from the "conservatorship".
If the federal government is victorious in all the remaining litigation by shareholders then the twins will simply become another branch of the federal government with all their inefficiencies and waste.
There will be a dearth of Executive talent as those individuals best suited to effectively and efficiently run such gargantuan enterprises put their talents to more lucrative endeavors.
Eventually the federal government will have to include some if not all of the $7.2T in MBS outstanding on their balance sheet and it would be a loss for the American taxpayer as well as shareholders who believed that the federal government would follow HERA and rehabilitate the gses and return them to their rightful owners.
Finally it would create a bad precedent when the next financial crisis inevitably arises as board of directors of shareholder owned companies will choose massive layoffs, cutting expenses to the bone and attempting to survive without governmental assistance as they fear potential Nationalization.
What do you think about this statement and how the 5th Circuit might think about it: "Plaintiffs argue that if Trump could have fired Watt day 1, then team Trump would have been able to complete GSE reform for all the reasons listed above and that this constitutional violation should be remedied by executing the Treasury plan created under Trump:"
Per glens latest post.
"According to the latest Federal Housing Finance Agency House Price Index (FHFA HPI®).
House prices rose 18.0 percent from May 2020 to May 2021. The previously reported 1.8 percent
price change for April 2021 was unrevised.
For the nine census divisions, seasonally adjusted monthly house price changes from April 2021 to
May 2021 ranged from +1.0 percent in the Middle Atlantic division to +2.4 percent in the
Pacific division. The 12-month changes ranged from +15.4 percent in the West South Central
division to +23.2 percent in the Mountain division.
“House prices continued their record-setting growth into May,” said Dr. Lynn Fisher, FHFA’s
Deputy Director of the Division of Research and Statistics. “This trend will likely continue around
the country as busy summer homebuying months maintain the pressure being felt in already tight
housing markets.”
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 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 August 31, 2021 with data for the second quarter of 2021
and monthly data through June 2021.
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These
government-sponsored enterprises provide more than $7.2 trillion in funding for the U.S. mortgage markets and
financial institutions."
Navy, how does 25% YOY price appreciation sound on your adobe (2nd highest in USA)? There's no place like home! "Phoenix’s 25.9% increase led all cities for the 24th consecutive month in accelerating home prices, with San Diego (+24.7%) and Seattle (+23.4%) close behind. Prices were strongest in the West (+19.9%) and Southwest (+19.8%), but every region logged double-digit gains from April to May."
https://www.housingwire.com/articles/home-prices-explode-on-the-west-coast/
FHFA House Price Index Up 1.7 Percent in May; Up 18.0 Percent from Last Year
???Washington, D.C. – House prices rose nationwide in May, up 1.7 percent from the previous month, according to the latest Federal Housing Finance Agency House Price Index (FHFA HPI®). House prices rose 18.0 percent from May 2020 to May 2021. The previously reported 1.8 percent price change for April 2021 was unrevised.
For the nine census divisions, seasonally adjusted monthly house price changes from April 2021 to May 2021 ranged from +1.0 percent in the Middle Atlantic division to +2.4 percent in the Pacific division. The 12-month changes ranged from +15.4 percent in the West South Central division to +23.2 percent in the Mountain division.
“House prices continued their record-setting growth into May," said Dr. Lynn Fisher, FHFA's Deputy Director of the Division of Research and Statistics. “This trend will likely continue around the country as busy summer homebuying months maintain the pressure being felt in already tight housing markets."
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 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 August 31, 2021 with data for the second quarter of 2021 and monthly data through June 2021.
The article was titled that he sold his holdings but I wasn't quite sure after reading David Einhorns letter whether he did or not!
It seems that he may have exited his position as his and probably most investors premised their holdings on the very legal and sound conclusion that a conservator could NOT rape and pillage their wards, contrary to what the SCOTUS ruled.
Will we recover ANYTHING in the courts? Will all the federal Judges be unwilling to adversely rule against Uncle Sam for TENS IF NOT HUNDREDS OF BILLIONS OF DOLLARS, when after all he signs their paychecks? Will ANY administration EVER do anything to allow the shareholders to regain their standing as the true owners of the company?
Will this and future administrations simply treat the gses as tools for their "best interests"?
Don't know!
But time will tell. Seems to be more volatility lately in the jps versus common, but BOTH seem to be going south.
https://www.housingwire.com/articles/industry-to-congress-g-fees-arent-your-piggybank/
“It’s a tax on housing consumers for one purpose, risk management of the [Government Sponsored Entities] loan portfolio, to pay for some other purpose,” said Killmer.
The kill the twins crowd with their pitchforks and torches from pre NWS seem to have changed their tune! I wonder if last May 2020 proved to this group that the gses serve an important function or perhaps it is just the MBA, NAR AND NAHB realizing that financially crippled gses has major repercussions on their bottom lines through unpleasant side effects such as 50bp adverse market fees, an inability to serve effectively the housing needs of Americans, and the unpredictability of politics and government calling the shots in the Secondary Mortgage Market.
Dick Bove is very familiar with the historical interactions of the US Government coming in to assist with homeownership in the United States during times of housing shortages (e.g., post WWII). He probably envisions the current or future administration monetizing the twins to help in that area, but with the scars of the GFC still in the rearview mirror that type of major governmental intervention may not be politically feasible.
Senator Mark Warner asked Jerome Powell earlier last week at the SBC about a 20 year FRM program going through HUD to help minority groups gain equity faster, but that seems like they will use the FHA to subsidize these social housing programs as the gses capital has been depleted so badly for the last decade.
Edward DeMarco, the only known conservator in history to give away the profits of his wards into perpetuity to the government!
Just another tool for the MBA, who wants to further expand their lucrative CRT share and ultimately aim for Uncle Sugar to hand out FEDERAL GOVERNMENT GUARANTEED MBS CHARTERS TO ANY AND ALL FINANCIAL INTERMEDIARIES.
But "Fulcrum Security" was a stroke of marketing genius:
ful·crum
/'fo?olkr?m,'f?lkr?m/
noun
the point on which a lever rests or is supported and on which it pivots.
a thing that plays a central or essential role in an activity, event, or situation.
"research is the fulcrum of the academic community"
se·cu·ri·ty
/s?'kyo?or?de/
noun
1. The state of being free from danger or threat.
"the system is designed to provide maximum security against toxic spills"
Similar:
certainty
safe future
assured future
safety
reliability
dependability
solidness
soundness
2. A thing deposited or pledged as a guarantee of the fulfillment of an undertaking or the repayment of a loan, to be forfeited in case of default.
"It still remains to address the unconstitutional way these agencies are funded.”
Yes, first stop COFC Appeals Court, then possibly En Banc and the SCOTUS if granted.
Look where the former CEO of Fannie Mae went, can you blame him given ZERO STOCK OPTIONS AND ANNUAL SALARY CAP AT $600K?
https://www.housingwire.com/articles/blend-is-now-worth-4-6b-now-what/
https://blend.com/blog/news/fannie-mae-tim-mayopoulos-president/