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Bank of America CEO Moynihan: [Don't ditch F&F] Don't be quick to ditch Fannie and Freddie
http://finance.yahoo.com/news/bank-america-ceo-moynihan-dont-162707473.html
WASHINGTON (Reuters) - Bank of America (BAC) Chief Executive Brian Moynihan on Friday said the taxpayer-supported mortgage giants, Fannie Mae (FNMA) and Freddie Mac (FMCC), should not be eliminated as policymakers calibrate the right balance of government support for home buying.
Regulatory uncertainty is holding back the return of private capital to the mortgage market, Moynihan said. But he cautioned that Fannie and Freddie should not be eliminated without first building a housing finance system for the future.
Moynihan, in remarks before a panel at the Brookings Institution in Washington, said that a government withdrawal that goes too far would put homeownership out of reach for many borrowers. Some of the "the old assumptions" designed to support home buying should be revisited, and there are steps that can be taken to ease the government out of the market, he said.
"I don't think changing Fannie and Freddie in some abrupt fashion is wise policy," he said. "We need Fannie and Freddie. They are critical to the transition."
The Obama administration and Congress have yet to decide on a specific option for weaning the mortgage market from its dependence on the government. A transition to a new housing-finance system is likely to take years, and lawmakers have yet to endorse a long-term option.
However, both Republicans and Democrats have called for the government to shrink and eventually wind down Fannie Mae and Freddie Mac, the companies that helped fuel the housing bubble before being walloped by investments in subprime mortgages.
Fannie Mae and Freddie Mac, which together have drawn almost $190 billion from the Treasury since they were seized by the government in 2008, are at the center of the debate over how to fix the mortgage-finance system.
"A healthy market needs private capital so the government - and the taxpayer - doesn't take all the risk," Moynihan said. "Access to credit is critical."
With higher hurdles to obtain homeownership in the wake of the financial crisis, he said lenders need to ensure buyers are credit-worthy and that owning still might be out of reach for many Americans.
"As the housing market strengthens, now is the time to have this dialogue in earnest so we can reset to a more secure, sustainable system for all the players involved," he said.
Moynihan said Fannie Mae and Freddie Mac are not the only players providing mortgage money that might need to reassess their missions to supply liquidity for the housing market, and suggested the Federal Housing Administration should return to its focus "of providing credit to low to moderate income borrowers."
Combined, the FHA, Fannie and Freddie back 9 out of 10 mortgages used for home purchases.
(Reporting By Margaret Chadbourn and Rick Rothacker; Editing by Nick Zieminski)
ahhh... the 11th...didn't catch that
fidelity not showing it.
i wonder where to find another version...
did i miss that yesterday??
not today... http://finance.yahoo.com/quotes/FMCC,FNMA,FMCKJ,FMCKI,FMCCM,FMCCK,FMCCT,FMCCI,FMCKK,FMCCG,FMCCH,FMCCL,FMCCN,FMCCO,FMCCP,FMCCJ,FMCKP,FMCCS,FMCKO,FMCKM,FMCKN,FMCKL,FNMAP,FNMAO,FNMAM,FNMAG,FNMAN,FNMAL,FNMAK,FNMAH,FNMAI,FNMAJ,FNMAS,FNMAT,FNMFM,FNMFN/view/v2?info=view_updated
miller -- congrats on post #2000!
post 2000????
FHFA lawsuit: a very good german friend in Hamburg is an associate at the law firm representing the FHFA! I just put two and two together, he's been there about a year now, but I just now put the pieces together.
He is not involved in the suit, but I told him to tell his buddies in NY and DC to kick ass for us!!!
awesome...wish he could give me the inside scoop..but, attorney client privilege and all that :(
Black Rock on GSE Reform:
http://www.reuters.com/article/2012/12/12/us-usa-housing-blackrock-idUSBRE8BB1RR20121212?feedType=RSS&feedName=PersonalFinance&rpc=43
The GSEs should continue to exist but should be downsized, have more conservative underwriting standards and should provide government guarantees for a fee, Novick said.
She declined to comment on another possible risk to housing: possible changes to the federal tax deduction on mortgage interest.
The deduction is estimated to cost the Treasury about $100 billion a year and may be restricted by politicians looking for ways to reduce the deficit without triggering $600 billion of automatic tax hikes and spending cuts at year end.
I think blow out earnings in 10K come Feb/ Mar whenever they get it out.
the question, the question, the question...who will claim the profits long term??????
AIG Sale Mechanics:
interesting....
http://www.cnbc.com/id/100302098 (click link for more)
The mechanics of what happens to the money are actually quite interesting. Jeffrey Sparshott at Real Time Economics explained them after the Treasury's September AIG offering. The investors buying the shares of AIG from Treasury make payments to JP Morgan Chase, which acts as the administrative agent for the deal. The Treasury and JP Morgan then sign agreements authorizing the money to be transferred via the Federal Reserve's Fedwire Funds Service to the Treasury's account at Bank of New York Mellon. What this means is that the Fed debits the digital account of JP Morgan and credits the account of BoNY with the money.
The real-world effect is to reduce the amount of money the government will borrow by a tiny bit. Today's $7.6 billion in proceeds buys just over half a day of spending before we hit the next debt ceiling.
but I am @skibrian if anyone cares to follow and see a picture of my boy in the www.twitter.com/#Royals dugout LOL!!!
the houses on the F&F twitter site you posted are English! the typical "semi-detached" homes built just prior and post WWII in the London suburbs.
not a very robust page.
i have almost no followers and nobody gives a crap what i have to say. I really use twitter to follow news, not to tweet. if I tweet, nobody hears. so, i must not really have tweeted? if a tree falls in the forest and nobody hears.....
great work joe, great work.
let's see what happens.
might i suggest, like quick links, links to investor websites, to sec filings, preferred share prospectuses, etc. so newbies can go straight to the sources when they have questions? just a thought.
I'm glad somebody took the lead and tried something. as an entreprenuer in my past, I can appreciate how hard it is to get something novel off the ground. in the social media age, it is even harder to get a following. I hope this develops not into a chat board per se, but perhaps a force for education and a lobby effort...but, you are the creator, so my "hopes" don't drive the bus.
anyway, good luck. I'm registered, and it would be cool to have a twitter options to tweet good posts and especially the introductory "launch" message.
the good thing is, the IG cannot act, they can only report. They have no enforcement mandate.
it's the inspector general. they investigate and issue recommendations to Congress(or to the Justice department when there is a crime) on how finances or security (think Defense department) or organizational controls (to prevent rogue operators) can be done better to have a more effective, honest, and efficient government. Every government agency has its own IG staff charged with that mission. It is the watchdog so that the white house and congress don't have to worry about such things on a daily basis. they are there to hold bureaucrats in check.
theoretically anyway. and while the FHFA controls F&F under Conservatorship, the FHFA IG is responsible to oversee the FHA, Freddie and Fannie.
it is what it is....
though millstein looks unlikely:
from the article:
Obama administration considered nominating Jim Millstein, the corporate restructuring executive who oversaw the Treasury’s re-privatization of American International Group , but backed off when it appeared that any nominee would be blocked, according to people familiar with the matter. “That ship has sailed,” said Mr. Millstein, who has since started his own restructuring company. He says he isn’t interested in the job if it is to be a caretaker position.
swim...did NOT catch that! 5 stars if millstein replaces...
thank goodness: "The measure isn’t going anywhere -- it faces a presidential veto threat and was blocked this week by the Senate -- but the temptation to tap Fannie and Freddie whenever Congress needs a ready supply of cash is likely to grow. "
joe -- excellent work. i hope it is received well when it goes public.
joe -- can' reply to priv. msg...I got it though. won't reply here to keep private.
joe....just looking for consensus on whether people think a ban is necessary.
For the record, I do not, and we only have one vote for a red card so far...as Europa put it :)
wish we could get along wooden...so, sounds like you are ok with leaving him/her yellow carded for now?
Lord of the Flies btw
i think the yellow card has been shown by most of us!
i think we ARE discussing the red card now.
who votes for sending him off? who votes for letting him stay?
(he/she only has 17 posts, and only on this board BTW---I checked his profile)
How do I ban someone?
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http://ihwiki.advfn.com/index.php?title=FAQ:Board_Management#How_do_I_ban_someone.3F
europe: 4 cents made the deletions, not i. I think it can be funny too, but if anyone finds us in the future, they may be disgusted and not contribute...that's my worry. We have so few here already.
other comments? 4 cents and I can recommend that ihub bans him, I think...I'll check on that in a second...
looking forward to what the community thinks...how about we let a little "democratic (small "d")" straw poll of who's here today vote on what we as a community should do about him?
Moderator guidance on "free speech":
http://ihwiki.advfn.com/index.php?title=FAQ:Board_Management#This_one_guy_keeps_posting_that_I.27m_violating_his_.22Free_Speech.22_whenever_I_delete_his_posts_that_violate_the_TOU
This one guy keeps posting that I'm violating his "Free Speech" whenever I delete his posts that violate the TOS.
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teach: 1st ammendment no apply:
Terms of Service (Link is at the bottom of your ihub page)
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beta, it seems to me 4 cents is on the ball...i'm not sure when it crosses the line to ban a poster. 4 cents? maybe we should consult the terms of service as our guide, as IHUB requested we do so when in question?
i think thestreet.com uploaded all of this stuff on one day...just posted their archive of clips all at once.
if so, very annoying that you can't tell when on the calendar cramer is flip flopping! this is very important information for us amateurs to use this with any credibility!
F&F going down? what? posted same day?
Anyone can make sense of "buy fannie soon" and F&F going away posted on same day?
Cramer on fannie
Freddie Mac informed lenders on Friday that it would begin making repurchase demands on mortgages written in 2004 as well, U.S. Bancorp Chief Executive Richard Davis said at an investor conference in New York.
http://www.reuters.com/article/2012/12/04/usbancorp-putbackreserve-idUSL4N09E3Z920121204?feedType=RSS&feedName=financialsSector&rpc=43
he doesn't want more taxes? of course he should take issue with the legislation that passed! when the payroll tax was passed, he actually spun an argument that is was not a tax increase...probably cause he hates F&F. you can look it up. many a pundit were scratching heads trying to figure out why he could spin it as not a new tax....
dumb post? dumb post? 4 cent, we used to be so amicable, why the hate?
i'm just rallying congress to tell the american people what it is!
grover is a hypocritical bastard for not outing this as a TAX
it helps ensure their survival. I wish they would be honest and tell the american people this is a new TAX on every home they finance via F&F. That's only honest...they are leading the public to believe (and the press isn't holding the politicians accountable) that they are sweeping more profits from F&F and punishing them. That simply isn't true.
The day they take more profits than the current Treasury agreement is the day that Congress crosses the line. I will be pissed and likely sell and finally agree with Kyle Bass that there is no interest in Washington to revive these companies and release from Conservatorship as private companies.
I wait and see....
well, what people need to wake up and see is that this is a TAX on new homeowners, it will not detract from F&F profits.
what a joke these politicians...
December 3, 2012, 5:55 AM
Fannie Mae, Can You Spare a Dime?
Overheard HOME PAGE »
U.S. taxpayers are still on the hook for $137 billion used to bail out Fannie Mae FNMA -0.73% and Freddie Mac FMCC -1.69%. But with the mortgage giants now posting profits, some in Congress see them as piggy banks.
The House of Representatives Friday passed a bill to allow foreign students graduating from a U.S. university with degrees in science and technology to obtain green cards. While the bill isn’t likely to get far, one aspect has rankled some groups.
Namely, parts of it would be funded using an increase in the fee Fannie and Freddie charge to guarantee mortgages. This wouldn’t be the first time Congress used the “G-fees” as a revenue source. In late 2011 the fees were raised to help pay for the payroll tax cut extension.
Washington, it seems, can get blood out of a stone.
– David Reilly
don't follow?
was saying that author in the Maine paper was probably a shareholder too. I suppose the more precise term would be stakeholder in case he is indeed a preferred owner. I wasn't making a distinction between common and preferred at all. maybe I missed your train of thought...