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There is generally an Emergency exception to the Takings Clause in times of war for example: "In recent years, courts have consistently held that the government is not liable to private
persons for destruction of property during times of war."
Da gubmint could claim that there was an economic emergency but that had passed almost 4 years later when the Net Worth Swipe was initiated.
7/16/2021
FHFA Eliminates Adverse Market Refinance Fee
Washington, D.C. – Today, to help families reduce their housing costs, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will eliminate the Adverse Market Refinance Fee for loan deliveries effective August 1, 2021.
To allow families to save more money, lenders will no longer be required to pay the Enterprises a 50-basis point fee when they deliver refinanced mortgages. The fee was designed to cover losses projected as a result of the COVID-19 pandemic. The success of FHFA and the Enterprises' COVID-19 policies reduced the impact of the pandemic and were effective enough to warrant an early conclusion of the Adverse Market Refinance Fee. FHFA's expectation is that those lenders who were charging borrowers the fee will pass cost savings back to borrowers.
"The COVID-19 pandemic financially exacerbated America's affordable housing crisis. Eliminating the Adverse Market Refinance Fee will help families take advantage of the low-rate environment to save more money," said Acting Director Sandra L. Thompson. "Today's action furthers FHFA's priority of supporting affordable housing while simultaneously protecting the safety and soundness of the Enterprises."
The vast majority of Enterprise borrowers have successfully exited COVID-19 forbearance. In April, approximately 2 percent of single-family mortgages guaranteed by the Enterprises remained in forbearance, down from a high of approximately 5 percent in May 2020. FHFA will continue to monitor the housing finance system, making policy adjustment in coordination with the Enterprises as necessary.
###
?The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide mor e than $7.2 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.?
Contacts:
?Media: Raffi Williams Raffi.Williams@FHFA.gov / Adam Russell Adam.Russell@FHFA.gov
With so much uncertainty I don't think anyone knows! Could the federal government keep them in perpetual conservatorship/nationalization forever? Possibly, but suppose they did, then what? The gses have experienced a huge outflow of hard to find Executive personnel since Mel Watts tenure. It will only get worse as attracting great talent to run and manage these financially crucial behemoths will become impossible without stock options and with a $600,000 salary cap in place.
Politically influencial industry groups such as the NAR, MBA, and NAHB will begin to realize that privately owned and managed gses will be much better at satisfying their needs than a centralized government czar whose subject to the political whims of whomever is in power.
As time marches on and assuming no victories whatsoever for any shareholder plaintiffs in any courtroom, Fitch, S&P, and Moody's will realize that with the SPSA in place as it stands now, the gses' will have large capital on their books but all of it belongs to the federal government and it is impossible to raise new capital and some if not all of the $7.2T in gse issued MBS belongs on the federal government balance sheet (CBO already thinks this is so now). This would likely end up impacting the federal governments AAA ratings and could result in higher yearly interest payments on the $22T federal debt.
Company Releases Quarterly Forecast
MCLEAN, Va., July 15, 2021 (GLOBE NEWSWIRE) -- According to Freddie Mac’s (OTCQB: FMCC) Quarterly Forecast, the low mortgage rates that have supported the housing market throughout the pandemic are expected to increase later in the year, but just gradually. Therefore, Freddie Mac predicts that the market will remain strong through 2021.
“As the economy continues to mend, the housing market remains strong even as certain obstacles have begun to slow sales across the country,” said Sam Khater, Freddie Mac’s Chief Economist. “Of note, high house price growth has been buoyed by increased demand due to low mortgage rates, disposable after-tax income that has risen during the current recession and a major shortage of housing supply relative to our population.”
Khater continued, “Despite the housing market’s recent highs, there are indications of softening demand in recent home purchase mortgage applications data. We expect refinance activity to soften as higher mortgage rates dampen activity. Overall, we forecast total originations to be $3.9 trillion in 2021 before declining to $2.6 trillion in 2022.”
According to Freddie Mac’s Forecast:
The average 30-year fixed-rate mortgage (FRM) is expected to be 3.1 percent in 2021 and 3.7 percent in 2022. In 2020, the 30-year FRM averaged 3.1 percent.
House price growth is expected to be 12.1 percent in 2021, slowing to 5.3 percent in 2022. Growth was 11.3 percent in 2020.
Home sales are expected to reach 6.9 million in 2021, remaining flat in 2022. Sales were 6.5 million in 2020.
Purchase originations are expected to increase to $1.8 trillion in 2021 and $1.9 trillion in 2022. This is up from $1.5 trillion in 2020.
Refinance originations are expected to soften, declining from $2.2 trillion in 2021 to $713 billion in 2022. This is down from $2.6 trillion in 2020.
Overall, annual mortgage origination levels are expected to be $3.9 trillion in 2021 and $2.6 trillion 2022. These levels were $4.1 trillion in 2020.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac, and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f943a0bb-9d0e-458b-ba7f-4d07336d4869
“The reduction in credit availability came as a result of GSE policy changes — which reduced the availability of high LTV refinance loans, impacting both conforming loans and GSE-eligible high balance loans.”
The conventional MCAI decreased 17.1%, and the government MCAI decreased by 1.4%. Of the component indices of the conventional MCAI, the Jumbo MCAI decreased by 11.5%, and the conforming MCAI that tracks loans backed by Fannie Mae and Freddie Mac fell by 23.5%.
Kan added that the “full impact” of new loan programs remains to be seen."
https://www.housingwire.com/articles/mortgage-credit-drops-to-lowest-level-since-september/
Fannie Mae Announces the Results of its Twenty-first Reperforming Loan Sale Transaction
July 15, 2021
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the results of its twenty-first reperforming loan sale transaction. The deal, which was announced on June 10, 2021, included the sale of approximately 12,100 loans totaling $1.58 billion in unpaid principal balance (UPB), divided into four pools. The winning bidders of the four pools for the transaction were DLJ Mortgage Capital, Inc. (Credit Suisse) for Pools 1 and 3 and RCF II Loan Acquisition, LP (Pretium) for Pools 2 and 4. The transaction is expected to close on August 26, 2021. The pools were marketed with Citigroup Global Markets Inc. as advisor.
The loan pools awarded in this most recent transaction include:
Pool 1: 4,449 loans with an aggregate UPB of $592,010,069; average loan size of $133,066; weighted average note rate of 4.35%; and weighted average broker's price opinion (BPO) loan-to-value ratio of 59%.
Pool 2: 3,411 loans with an aggregate UPB of $460,024,607; average loan size of $134,865; weighted average note rate of 4.34%; and weighted BPO loan-to-value ratio of 61%.
Pool 3: 3,448 loans with an aggregate UPB of $418,469,092; average loan size of $121,366; weighted average note rate of 4.51%; and weighted BPO loan-to-value ratio of 52%.
Pool 4: 766 loans with an aggregate UPB of $110,858,344; average loan size of $144,724; weighted average note rate of 4.33%; and weighted BPO loan-to-value ratio of 63%.
The cover bids, which are the second highest bids per pool, were 105.07% of UPB (47.35% of BPO) for Pool 1, 100.63% of UPB (46.25% of BPO) for Pool 2, 106.51% of UPB (39.50% of BPO) for Pool 3, and 102.00% of UPB (49.24% of BPO) for Pool 4.
Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of U.S. households. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog
Media Contact
Matthew Classick
202-752-3662
Fannie Mae Newsroom
https://www.fanniemae.com/news
Photo of Fannie Mae
https://www.fanniemae.com/resources/img/about-fm/fm-building.tif
Fannie Mae Resource Center
1-800-2FANNIE
MCLEAN, Va., July 15, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent.
“The summer swoon in mortgage rates continues as the 30-year fixed-rate mortgage fell for the third consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “Since their peak at 3.18% in April, mortgage rates have declined by thirty basis points. While this decline is not large, it provides modest relief to borrowers who are purchasing in a market with strong home appreciation and scant inventory.”
News Facts
30-year fixed-rate mortgage averaged 2.88 percent with an average 0.7 point for the week ending July 15, 2021, down from last week when it averaged 2.90 percent. A year ago at this time, the 30-year FRM averaged 2.98 percent.
15-year fixed-rate mortgage averaged 2.22 percent with an average 0.6 point, up from last week when it averaged 2.20 percent. A year ago at this time, the 15-year FRM averaged 2.48 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.47 percent with an average 0.3 point, down from last week when it averaged 2.52 percent. A year ago at this time, the 5-year ARM averaged 3.06 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/87517f69-8064-4a19-8bb7-70a16a9c643d
"JULY IS slipping away, and Sept. 6, the 13th anniversary of the federal takeover of Fannie Mae and Freddie Mac, is on the way. Mark your calendars - and marvel at the permanence of what was supposed to be a temporary measure ..."
What should we get the "temporary conservator" for the 13th Birthday of the gses "conservatorship"?
The 5th Circuit is typically one of the best Circuits to be in when dealing with governmental overreach. It will be interesting to see who the trial Judge is that will be assigned to reside over the case.
Since September 06, 2008, almost everyone interested in taking a position in the gses assumed that jps was the way to go and logically was the best bet, but that paradigm seems to have shifted in the last 5 years.
Quite a few of the people who sold when the SCOTUS ruled in Collins were either looking for quick silver, disillusioned by the inability of the federal courts to decisively rule against the federal government, or after 12.75 years said that's enough for me.
Some previous jps holders may have possibly shifted to common since the quick recap and quick dilution solution don't seem to be happening.
I looked at a performance chart in one of my brokerage accounts the other day comparing common versus jps YOY, and it looks like they got hit 2x as hard as common!
I hope we all do well and I still believe that Private Capital in a 1st Loss Position is the best use of the gses for the American people and the government that is suppose to serve them.
Seems like another pyhrric victory, BUT Collins is still alive, the 5th Amendment Takings Claim looks more promising (I haven't heard Nationalization uttered so many times in any previous oral arguments and SCOTUS has handed the Pacific Legal Foundation their 13th out of 15th win with the Cedar Point Nursery case decided on June 23rd), and the possibility exists for expanded Discovery Documents in Collins as well as a possible 1O to 13 figure judgment. Although Collins sat in the SCOTUS inbox for 21 months, it did allow time to book approximately $50B in capital.
Had MC been installed on Day 1, don't you think that the gses would be much further along with the R,R,R? That may be the focus on remand as the 5th Circuit determines what type of relief should be granted because the POTUS had zero control over the decisions made by the confirmed FHFA Directors.
Lastly, we did contribute to giving all future POTUS's more control over an often out of control 4th branch of government. This was in todays WSJ:
The Meaning of Biden's Firing Spree
The Biden Administration may be the most progressive in decades, but it is accelerating a conservative revolution in presidential power over the federal bureaucracy. The latest example is the President's sacking Friday of Social Security Administration (SSA) commissioner Andrew Saul, the Trump appointee whose six-year term wouldn't have expired until 2025.
Democrats in Congress lobbied for Mr. Saul's firing because he displeased federal employee unions. Mr. Biden has been aggressive in purging the federal government of Trump appointees, even those like the SSA commissioner who typically serve under Presidents of both parties. The Administration has also broken norms by axing the National Labor Relations Board general counsel and leaders at the U.S. Commission on Fine Arts and the Administrative Conference of the U.S.
In a legal memo justifying the firing of Mr. Saul, the Biden White House pointed to the Supreme Court's decisions in Seila Law v. CFPB (2020), which held that the President could fire the head of the Consumer Financial Protection Bureau, and Collins v. Yellen (2021) which held that he can fire the head of the Federal Housing Finance Agency.
Those decisions were a major blow to the favored progressive model of governance, which sees agencies insulated from accountability as preferable to traditional democratic processes. Mr. Biden's nominee to lead the CFPB, Rohit Chopra, in 2018 proposed a new agency to regulate political lobbying headed by a virtually unremovable director with a term of up to 10 years.
Yet Democrats are now adopting the conservative view that a President ought to be able to exert greater control over executive agencies. This shift comes from partisanship, not principle, but it could have lasting implications.
If Mr. Saul sues to serve out his statutory tenure, and the case makes its way to the Supreme Court, it would present the Justices with a novel question about agency accountability. The Court's conservative majority could build on its Seila Law precedent.
More significant, it could reconsider two of its mistaken decisions limiting presidential control over bureaucracies -- Morrison v. Olson (1988) on the independent counsel statute, and Humphrey's Executor (1935) on independent agencies. A legal complaint by Roger Severino, whose three-year term on the council of the Administrative Conference was cut short in February, cites the latter case in demanding his reinstatement. A savvy legal shop representing Mr. Saul could bring those issues to the fore.
Progressives cringed when Mr. Trump or his supporters spoke of a "deep state" and "Obama holdovers." Yet Mr. Biden's firing spree shows that, especially in a time of heightened polarization, officials appointed by a prior President of either party may differ with an incoming Administration in meaningful ways. The constitutional approach is to let a new President pick his own personnel, so his Administration can be accountable to Congress and in elections.
Even the Biden Administration is now operating as if it endorses the originalist view of a unitary executive. Conservatives may not like the policy results of this in the short term, but the long-term result could be a more accountable government.
I know! How long will it finally take for the realization that having private capital in a 1st Loss Position is in the best interests of the nation, the secondary mortgage market, and most importantly the American home buyer?
I used to have lunch with this guy before he passed away that use to provide security for President Truman, and he always referred to that publication as "Pravda on the Potomac", HE WAS SO RIGHT WASN'T HE!
https://en.m.wikipedia.org/wiki/Pravda
Since the status quo seems to keep the Secondary Mortgage Market humming, there may be little appetite inside the beltway to tackle the complex issues associated with housing finance reform. The SCOTUS could have easily given the political cover the current administration needed to "create a windfall for the evil hedge fund guys/banksters", but alas they punted.
The individual he picks to replace Sandra L Thompson will be telling. Having raped the twins daily of their profits since August 17, 2012 (via cash sweeps and now the LP), THERE AIN'T MUCH LEFT FOR THE CURRENT ADMINISTRATION TO PILLAGE!
With her 20 years experience at FDIC as well as with the FHFA since 2012, this BO appointed director may possibly remain.
https://www.washingtonpost.com/opinions/2021/07/11/forever-war-over-fannie-mae-freddie-mac/
JULY IS slipping away, and Sept. 6, the 13th anniversary of the federal takeover of Fannie Mae and Freddie Mac, is on the way. Mark your calendars - and marvel at the permanence of what was supposed to be a temporary measure to keep these government-backed housing-finance giants from going bankrupt amid financial panic in 2008. The latest institution to weigh in on this situation was the Supreme Court, which ruled against opponents of the federal takeover late in its just-completed term.
Before 2008, private shareholders owned and profited from Fannie and Freddie, which nevertheless enjoyed various congressionally conferred advantages because of the "public purpose" of their business - providing liquidity to the market for 30-year home mortgages by packaging them as securities for sale to investors. Implicitly backed by the full faith and credit of the United States, the two companies could and did take risks in pursuit of shareholder gain, leading to distress when housing prices crashed - necessitating a bailout-cum-takeover by the Federal Housing Finance Agency (FHFA).
At issue in the Supreme Court was a 2012 government policy under which the FHFA continued to send all Fannie- Freddie profits to the Treasury long after the pair had recovered and paid back a federal cash injection estimated at $187 billion. The plaintiffs opposing it were hedge funds that had bought the companies' beaten-down stock and would make a killing if the firms wer suddenly required to share cash with private investors again. In fact, the plaintiffs argued that they were entitled to $124 billion Fannie and Freddie had allegedly overpaid the Treasury. Fortunately, the justices ruled that the government's profit "sweep" was fully authorized by a 2008 statute that created the FHFA. This was correct both legally and common-sensically - a taxpayer-funded speculator windfall would have been a deeply unjust conclusion to this saga.
Not that this result is necessarily the happiest possible ending (assuming it is an ending), in terms of public policy. The government will continue to bear the downside risk of backing nearly half of the United States' $11 trillion in mortgages, while also reaping the profits. That's an improvement over the pre-bailout situation, in which taxpayers bore the risk but shareholders got the upside, but it's still far from optimal. Under the FHFA during both the Obama and Trump administrations, Fannie and Freddie took incremental steps toward greater transparency and reduced risk. Nevertheless, the country could benefit from a more fundamental overhaul of its mortgage- finance system. Bipartisan coalitions repeatedly tried to craft one in Congress - without success. This failure of governance was a victory for housing lobbies that benefit from the status quo.
President Donald Trump placed Mark Calabria, a free-market advocate of privatizing the companies, in charge of the FHFA, but the court's opinion, in a separate holding on the executive's power to hire and fire agency directors, enabled President Biden to dismiss Mr. Calabria. An end to government control, for which Mr. Calabria had prepared the companies by modifying the 2012 policy and letting them retain profits as a capital base, is therefore seemingly off the table. The risk is that the status quo develops even more inertia. Mr. Biden replaced Mr. Calabria with Sandra L. Thompson on an acting basis, but must soon make a permanent choice. He should use the pick to advance the cause of reform.
It's funny how the NAR, MBA, and NAHB years ago did a full court press to lobby for the dismantling of the twins and only NOW REALIZE THAT THE GSES ARE UNABLE TO HELP THEM WITH NO CAPITAL!
The issue on remand in Collins will be laser focused on answering one question: Where the shareholders damaged financially by the fact that the POTUS was unable to remove any of the confirmed FHFA Directors? If the Collins Plaintiffs can show for example that the prior administration wanted to remove Mel Watt on Day 1 (through intra governmental emails discussing the situation or by deposition) then the 5th Circuit could order a remedy consistent with financial damages sustained by the shareholders as a result of the shareholders unnecessarily having to wait for a FHFA Director who unlike Mel Watt ACTUALLY WANTED TO GET THE GSES OUT OF GOVERNMENT CONTROL.
Of course that would probably require the 5th Circuit allowing the Collins Plaintiffs to obtain these intra governmental communications through expanded Discovery Documents.
Meanwhile the government will likely file a Motion to Dismiss based on some new legal analysis they've come up with just to see if it will work for them and the case would likely stop dead in it's tracks. I'm pretty sure that the government will try something but I don't know what that is based on.
https://www.cnbc.com/2021/07/12/homebuyers-finally-get-a-break-as-new-listings-rise-and-mortgage-rates-drop.html
https://www.seattletimes.com/opinion/the-magnitude-of-our-housing-shortage-requires-more-action/#comments
There may be still some room to run towards retrospective relief in Collins. At a minimum all the pending litigation keeps the government from taking more drastic self dealing actions that wipe out the shareholders.
Not sure what the governments and Davids next moves are but I suspect that the government will drum up another Motion to Dismiss and David may ask for expanded Discovery to obtain intra governmental communications involving the confirmed FHFA Directors.
Craig Phillips said the prior administration wanted the funds from the NWS for spending on their pet projects but there may be some documents that shed light on whether or not the prior administration wanted Mel Watt out on Day 1.
Given the pandemic, I think everyone is trying to do the best they can! No question that the government payments directly to Americans helped with paying the bills, the largest bill for most being rent or mortgage. As I am sure you are aware, once a tenant is in arrears by a month or two, the prospects of getting the rent back is low! Perhaps in the end, the government will do the right thing and cover the back rent but given the way the government has treated the twins I wouldn't hold my breath!
So much still up in the air on these two private now totally government controlled corporations! Perhaps some day the government will realize that they should just follow HERA and get the government out of running two private corporations.
Litigation between the shareholders and the government over the final disposition of hundreds of billions of dollars could take some time.
Just seems to me a quick recap and dilution solution is not in the cards in the immediate future and where and how this extraordinarily bizarre "temporary conservatorship" eventually ends up is still to be determined.
You made a great call on the textualist approach to the SCOTUS decision on the Incidental powers of HERA overriding the duty of a Conservator to preserve and conserve their wards assets!
What do you think about the prospects of the Takings Claims and what recovery if any do you see in Collins?
This is exactly how markets respond when the federal government expropriates rental properties by sticking the landlords with up to 18 months of free rent for their tenants:
From todays Washington Post: "Lauren Campos opened the door to her Phoenix apartment recently to find a note stuck in the door frame. Her rent was going up nearly $400 a month, the note said, a 33 percent increase.
Campos and her fiancee read the letter in shock. The property management company gave them four days to decide whether to commit to stay or leave by the end of July. They spent the rest of the day poring over apartment listings online, only to realize they would either have to move or downsize from their two-bedroom place to a one-bedroom.
"It almost feels like there is nowhere to go. It's just insane everywhere," said Campos, 28, a lifelong Phoenix resident who has noticed a growing number of California license plates in her complex's parking lot. "It feels like I'm being chased out of my own home, and it's the worst feeling in the world."
Rents are starting to surge in many parts of the country as the economy reopens and young people return rapidly to cities. On top of the influx of millennials and Gen Z renters coming back after staying with family or friends, people who can work from anywhere are still moving to lower-cost cities, and the hot home sale market has caused some baby boomers to sell their family homes and rent again now that their kids are grown."
Rent prices soar through the roof as Americans return to cities is the name of the article.
Are the shareholders paying the over $100 million in legal fees for the "conservator" FHFA to defend itself in these multiple litigation cases through the annual extraction from the corporations assets?
How would we find that out? Probably protected from Discovery by the "National Security" privilege !
"'Britney Spears’ father, Jamie Spears, is being called out for allegedly spending more than $2 million of her money on legal fees to remain her conservator."
https://www.yahoo.com/entertainment/britney-spears-jamie-conservator-millions-lawyer-fees-212446553.html
I know MC seems a little bitter about something...
This response was pretty good: "Waste of time making a “new” capital rule the old one took long enough and was high enough. These entities aren’t and won’t ever be banks. Why bank like capital. #donkey. #Fanniegate"
whaley
@presvnconsv
·
22h
Replying to
@MarkCalabria
Chartering with the risk of being nationalized isn’t really the definition of capitalism
Right of Left
@RightOfLeft_TX
·
21h
"Please start a business! And if you're lucky, we won't confiscate it!"
- pro business Libertarian
I think it's a nothing burger: "As previously reported, the parties have had productive negotiations over the past few weeks to
narrow the range of issues addressed in Plaintiffs’ motion. In addition to resolving entirely Plaintiffs’
argument regarding waiver of the attorney-client privilege, the parties have had continued discussions
about the deliberative process privilege issues raised in Plaintiffs’ motion. Recently, Treasury produced
additional documents that it had previously withheld pursuant to the deliberative process privilege, and
the parties continue to engage in a meet-and-confer process that has the potential to further narrow the
issues in dispute. The additional time requested in this motion will allow this process to continue while
also affording Defendants time to prepare a response to issues raised in Plaintiffs’ motion that the parties
are unable to resolve through their negotiations."
MC just fails to acknowledge that handing out MBS government guarantees to financial intermediaries will result in a race to the bottom in both loan pricing and quality! Who wants a repeat of the GFC?
The Libertarian Federal Reserve Chairman Greenspan, turned his head the other way, incorrectly believing that the private market PLS would most efficiently price the risk/reward premium when instead competitors engaged in a race to the bottom and brought the world economy to its knees. Who wants that to happen?
That was a clear thumbs up!
He has gone from the ACCOUNTABLE TO NO ONE IN GOVERNMENT CZAR OF THE GSES with a passion for micromanaging to unemployed.
Watch him land a new "employment opportunity" at the end of his mandated "cooling off" period (if there is one!) with a financial intermediary that holds mortgages in their portfolio to reward MC for crafting an outrageously excessive Capital Rule to stymie the gses. Of course the salary won't be disclosed, nor will his stock options !
Kudlow said in his exit interview with MC on Fox Biz, "You'll find a new job!"
I think Kudlow SHOULD HAVE SAID, "Don't worry old boy, I told SM and DJT to throw you under the bus in furtherance of the Unitary Executive Principle and besides we never wanted the gses to not be under federal control!"
It seems that the government is having a hard time with full transparency during the Discovery Documents period, hiding behind, Executive Privilege, National Security, ANYTHING THAT MIGHT STICK.
Here, I think "Negotiations", simply means negotiations over letting Plaintiffs have access to documents in the defendants possession!
With the government continuing its "sweep" of victories in almost every single court hearing to date, I don't think they are inclined to give in an inch on giving up one thin dime of the $308B transferred from the two private enterprises to the UST.
This lady ought to apply for a job at the FHFA, they both know how to use the law to steal others property:
https://therealdeal.com/2021/07/08/tenant-skipped-rent-for-a-year-despite-endless-parade-of-illegal-airbnb-guests-lawsuit/amp/
What insane prospective investors will willingly put their own money in a 1st Loss Position after the government has treated us this way?
The replies to MC'S tweet, just keep coming! Great response tweets!
Finally someone endorses my call to give #FHFA chartering authority, bringing need competition to our secondary mortgage market pic.twitter.com/aSY1VTnXV0
— Mark Calabria (@MarkCalabria) July 9, 2021
I think the days of a quick resolution on this whole clusterf**k are in the rear view mirror. From what I understand, the Collins Plaintiffs originally focused on the validity of the INITIATION OF THE NWS (AUGUST 17TH, 2012). We've got plenty of smoking guns showing bad actors in the government on its CREATION.
What the SCOTUS decision said was (1) sure the FHFA Director can legally (but NOT unconstitionally) do whatever it wants so long as they are in the interests of the FHFA or the public it serves and (2) the CREATION OF THE NWS IS NOT A SEPARATION OF POWERS PROBLEM BECAUSE THE POTUS EVEN THOUGH HE WAS PREVENTED FROM FIRING A CONFIRMED DIRECTOR AT WILL HE ALWAYS COULD FIRE AN ACTING DIRECTOR and because of that the Collins Plaintiffs can only seek retrospective relief from the IMPLEMENTATION OF THE NWS.
Indeed, just last night, the POTUS fired the head of the SSA, based on Collins and Seila Law.
So, that means on remand to the 5th Circuit, the court will focus on a remedy that deals only with the time periods involving a SENATE CONFIRMED DIRECTOR!
Wouldn't the Collins Plaintiffs be interested in asking the Judge in the 5th Circuit on remand for expanded Discovery to obtain intra governmental communications involving the implementation of the nws between a confirmed director and the POTUS administration?
If the Judge says yes, it could take awhile to gather those documents from an overly reluctant government adversary. So, I wouldn't expect a prompt resolution to this clusterf**k!
Of course you know the government will file a Motion to Dismiss based on some theory that I haven't figured out yet, and that could stop the Collins Plaintiffs in their tracks.
In the meantime the dollar for dollar increase in the LP continues but due to the governments voodoo accounting it builds much needed capital after the government took all of our net worth for 7 years!
I think one thing to keep an eye on is to see if he gets his massive housing bill through Congress, whether in "infrastructure" or elsewhere. If he doesn't he may return to looting the gses as his former boss showed him how to do on August 17, 2012!
Given Collins and Seila Law, JB seems to be embracing the Unitary Executive Principle and likes saying, "You're fired!":
"Saul, whose six-year term was set to end in January 2025.
The Justice Department's Office of Legal Counsel signed off on Biden's move, concluding that two recent Supreme Court decisions including on Calabria indicate that Congress' effort to limit the president's dismissal power over the Social Security commissioner is unconstitutional. In another case last year, the court ruled that Congress could not limit the president's power to dismiss the head of the Consumer Financial Protection Bureau.
Biden and other administration officials have been sued by one Trump appointee they fired. Roger Severino, who was appointed to the council of the Administrative Conference of the United States in the final days of Donald Trump's presidency, said the Biden administration requested his resignation on Feb. 2. If he did not accept, he alleged, he would be removed from his post. He filed the lawsuit on Feb. 3.
The latest court filing from Thursday fleshes out the administration's argument that the president has broad power to dismiss appointees like Severino or Saul.
"Because the President possessed the statutory authority to terminate Severino’s service, and no constitutional bar precluded his exercise of that authority, the amended complaint fails to state a claim for which relief can be granted," reads the document, in which administration attorneys have moved to dismiss the case.
Saul, 74, a wealthy former women's apparel executive and prominent Republican donor, was confirmed as SAA commissioner in early 2019. He was formerly a trustee at the Manhattan Institute for Policy Research, a conservative think tank that has called for cuts to Social Security benefits. The agency pays out more than $1 trillion a year to about 64 million Americans."
https://www.politico.com/news/2021/07/09/biden-fires-social-security-commissioner-499009