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Well, what can you do about it, nothing. So, just put it into perspective. It is only one of many lawsuits, it may allow the Collins Plaintiffs for an opportunity for expanded Discovery Documents to include all periods of time when a confirmed director was installed, and it prevents the gubmint from implementation of the dilution solution and other more aggressive restructuring plans.
Also, depending on who the trial Judge is, we may end up recovering billions.
We know that bad actors inside da gubmint did us wrong and the lawsuits are but one avenue of relief and remedy.
I think none of the lawsuits have gone to trial yet and in America we don't do secret trials , so all the court transcripts will be available and in essence we can see inside the courtroom.
So hang in there, I think us remaining holdouts all know that this current swiping of our private property will not stand.
But sir, I just want my damn property back! What's super scary is after Collins, the new clowns in town may be rubbing their hands together, smiling and saying, "Oh, they thought the nws was insidious, this time we will succeed in salting the Earth with their carcasses!" . What a country!
They are adept at pulling the levers in DC to get EXACTLY WHAT THEY WANT! Here's the head of the NAHB in 2014 spewing the gospel on Uncle Suggy handing out MBS government guarantees like candy to the tbtf banks:
https://www.cnbc.com/video/2014/03/12/nahb-ceo-replacing-fannie-freddie-will-reinvigorate-housing.html
I think lately the MBA, NAR AND NAHB are singing a different tune after realizing because of TINA and the raping of the twins daily for the last 8 years has brought on higher gfees and things that are unpleasant to them like adverse market fees...
Even though we were an accessory to the crime murdering the world economy in 08-09, the perpetrators, the TBTF BANKS JUST ANNOUNCED BUYBACKS AND SHARE REPURCHASES!
"The first wave of borrowers to enter the government’s coronavirus mortgage bailout program are entering their last possible quarter for relief, which means that come September they will either have to start paying, sell their homes or go into foreclosure."
https://www.cnbc.com/2021/07/02/mortgage-servicers-brace-for-fallout-as-covid-bailout-comes-to-an-end.html
Maybe the gses can treat these mortgagors to one of those, "We'll take 79.99% of your equity and no principal reduction for all your payments into PERPETUITY!"
"“Allowing more families to qualify for an interest rate reduction will prevent unnecessary foreclosures, help strengthen the Enterprises’ books of business, and make sustainable homeownership a reality for more families currently living with the uncertainty of forbearance,” said acting FHFA Director Sandra Thompson."
For 2022 through 2030, the baseline includes projected subsidy costs of new mortgage loans and guarantees made by Fannie Mae and Freddie Mac in each year, estimated on a fair-value basis.
For more information about CBO's budgetary treatment of Fannie Mae and Freddie Mac, see Congressional Budget Office, CBO’s Budgetary Treatment of Fannie Mae and Freddie Mac (January
2010), www.cbo.gov/publication/41887.
The above was from footnote a of: Congressional Budget Office
Supplemental Data for The Budget and Economic Outlook: 2021 to 2031
Baseline Projections
Federal Programs That Guarantee Mortgages
This from the 2010 cbo report: In September 2008, the Director of the Federal Housing Finance Agency placed into
conservatorship two large government-sponsored enterprises, the Federal National
Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corpora-
tion (Freddie Mac).1
At the same time, the Secretary of the Treasury took a major
ownership interest in both entities. In taking those steps, federal officials were exercis-
ing authority provided in the Housing and Economic Recovery Act of 2008.2
In the
judgment of the Congressional Budget Office (CBO), those actions make Fannie Mae
and Freddie Mac part of the government and imply that their operations should be
reflected in the federal budget.
Now, however, the federal government controls both
entities and is operating them to fulfill the public purpose of supporting the housing
and mortgage markets.4
Moreover, both entities rely on federal backing to maintain their low-cost access to financial markets. Although they are not legally government
agencies, and their employees are not civil servants, CBO believes it is appropriate and
useful to policymakers to include their financial transactions alongside all other fed-
eral activities in the budget.5
5. The Administration’s Office of Management and Budget makes the ultimate decision about
whether Fannie Mae and Freddie Mac will be included in the federal budget. Although the Presi-
dent’s budget documents have not included the activities of Fannie Mae and Freddie Mac in the
budget totals, they have provided financial information about the two entities for several years;
see, for example, Budget of the U.S. Government, Fiscal Year 2010: Appendix, pp. 1339–1340.
The Administration’s Office of Manage-
ment and Budget (OMB) continues to treat Fannie Mae and Freddie Mac as outside
the budget, and it records and projects outlays equal to the amount of those cash infu-
sions.
As a result, the Administration has not included in its budget figures subsidy
costs that would be directly comparable to CBO’s $291 billion estimate of such costs
in 2009. Instead, because the Treasury provided a total of $95.6 billion in cash outlays
to the two entities in fiscal year 2009, the government’s final report of spending for
2009 included that amount, which is similar to CBO’s August 2009 estimate of cash
infusions for that year ($112 billion).8
OMB has estimated that cash outlays from the
Treasury to the two entities will total another $65 billion over the 2010–2019
period.9
In contrast, because CBO has concluded that Fannie Mae and Freddie Mac should be
treated in the federal budget as government entities, it considers transactions between
them and the Treasury to be effectively intragovernmental payments, which do not
affect net federal outlays. Adding those transactions to the subsidy costs that CBO has
estimated for the entities would amount to double-counting.
Neither CBO nor OMB incorporates debt securities or mortgage-backed securities
issued by Fannie Mae and Freddie Mac in estimates of federal debt held by the public.
In budget documents, debt held by the public is defined narrowly as including only
debt issued directly by the Treasury. Excluding the two entities’ debt is consistent with
the exclusion of other federal obligations, such as those of the Tennessee Valley
Authority or commitments made under federal loan guarantee programs. Moreover,
CBO’s treatment of the entities’ debt does not constitute a statement about whether
or not that debt should be considered federal debt. Such a determination depends on
how narrowly or broadly one interprets the concept of federal debt and for what pur-
pose. Nevertheless, recent events clearly indicate a strengthening of the federal govern-
ment’s commitment to the obligations of Fannie Mae and Freddie Mac.
Shareholders should try to and fight to say we are no longer owners of these companies the US government is and push for them to assume the debt.
“Ms. Spears: You have been mistreated by America’s legal system. We want to help. The United States Congress should hear your story and be inspired to bipartisan action. What happened to you should never happen to any other American,” the letter read.
“Your story is so powerful, and the admiration of your achievements so great, you (and perhaps only you) can blow that door wide open, giving hope to millions.”
I FEEL YOUR PAIN MS. SPEARS!
Our problem is society mistakenly views us as opportunistic hedge fund guys and banksters, instead of hard working American retirees and workers who have been through a shakedown of our property rights.
For some reason I think the US MBS Secondary market with both explicit government guarantees (Ginnie Mae) and implicit government guarantees (FNF) are still mostly relatively rare throughout the globe. I think the Canadians get hit with a prepayment penalty whenever they pay their mortgage off early. The Europeans use something called a covered bond.
I think there is no question that the gses provide value to the Primary Mortgage Market, I guess the question is does the US want an explicit or implicit guarantee on the gses?
That sounds right! I just think it's so amazing that all these powerful people CANNOT KILL THE TWINS! I think the shareholders cause is just, but as we've seen Justice doesn't always happen!
Born and breed in the 5th Circuit and nominated by the gipper, he may hate the twins anyway and see them as an abomination of governmental influence in free markets, who knows. But his bread has been buttered in DC for along time now. https://ballotpedia.org/Royce_Lamberth
Inertia will likely be the status quo for a while as the current administration doesn't want to be seen as giving a break to hedge fund billionaires when millions of hard working American families are getting shut out of the affordable housing market and the financial divergence between lower middle income and higher income Americans continues to expand.
Do you think that the 4th Amendment was enacted to deny the new administration access to free money and continue shrinking the gses footprint or was it done to eliminate the chance for prospective relief in Collins (which the SCOTUS bought hook, line, and sinker) or both?
With inertia in the executive and legislative branch of government the only one left is judicial.
The funny part is that the new administration won't be able to raid their balance sheets for more spending, BECAUSE THEY IS NOTHING LEFT AFTER THE LAST 12.75 YEARS OF CONSERVATORSHIP
Look at the bright side, Bill Cosby just got his freedom back based on a violation of his US Constitutional rights by the governments bad acts, maybe WE will get our property back based on a violation of our US Constitutional rights by the governments bad acts.
I've owned shares in these two financial behemoths for decades now (since I worked there in the late 1980's), I will continue to hold for a long time as I've always viewed almost all my investments as long term.
Although disappointed in this whole unnecessary 12.75 year temporary conservatorship, I like the low prices and will continue to dollar cost average over the years as free cash flow is generated from my other holdings. GLTA!
Did you see this in todays Washington Post?
Watchdog who oversees housing agency quits, months after scathing report
The inspector general overseeing the Federal Housing Finance Agency resigned Tuesday, two months after a scathing watchdog report alleged that she abused her authority, retaliated against employees and blocked an investigation into her conduct.
In April, an investigation by a special panel - known as the Integrity Committee - sent a report to the White House about Laura Wertheimer, the inspector general overseeing FHFA, who was nominated by President Barack Obama in 2014. The report noted years of complaints against Wertheimer and other staff members, and it ultimately concluded that "misconduct of this nature warrants consideration of substantial disciplinary action, up to and including removal."
The report found that Wertheimer "showed a disdain and resistance" toward oversight from Congress and the Integrity Committee and that she fostered "a culture of witness intimidation through a pattern of staff abuse and fear of retaliation." The report said that Wertheimer wrongfully refused to cooperate with investigators from the Integrity Committee by denying them complete access to office staff and documents.
Wertheimer did not immediately respond to a request for comment. In a letter to staffers on Tuesday, a copy of which was obtained by The Post, Wertheimer did not acknowledge the Integrity Committee's report or its allegations. She wrote that "President Biden should have the opportunity to fill both the FHFA Director and IG positions with his own nominees" and that she "had no intention of staying for seven years." Wertheimer will leave her post at the end of July.
However, Wertheimer's attorney, Emmet T. Flood, disputed the findings in the report.
Flood told The Post on Tuesday that Wertheimer played no role in deciding what materials to provide to investigators and that she did not obstruct or resist the fact-finding mission. Flood said it was difficult to respond to specific complaints about intimidation since the report did not include witness names.
"There was no evidence of retaliation against witnesses," Flood said. "There was no evidence offered of intimidation."
The report included complaints of a toxic work environment in which Wertheimer called people by "demeaning nicknames," including "Boris and Natasha," the spy villains in the "Rocky and Bullwinkle" cartoon series. Wertheimer also used the term "weasel" to disparage staff, and reinforced the message by buying and distributing a children's booked titled "Weasels" around the office. Photos of the children's book were obtained by The Post.
Flood acknowledged that Wertheimer used the term "weasel" in private to a small group of staff years ago.
However, Flood added that the allegations about a toxic office culture were years old and that there had been no complaints about office culture since.
Since the report's release, many people close to federal inspectors general wondered whether the Biden administration would remove Wertheimer. In many instances, the concern was that the allegations against Wertheimer were not only serious in their own right, but that they also directly undermined the role of an inspector general and the independence they are afforded to uphold their jobs.
The Integrity Committee is a body within the Council of Inspectors General on Integrity and Efficiency. The job of the committee is to investigate allegations of misconduct against inspectors general.
Earlier this year, the Integrity Committee report prompted two top Republican lawmakers - Sens. Charles E. Grassley (Iowa) and Ron Johnson (Wis.) - to call on the Biden administration to remove Wertheimer. In a statement at the time, the lawmakers wrote that "to put it mildly, the only thing this watchdog appears to hunt is her own employees."
In a statement following Wertheimer's resignation on Tuesday, Grassley said: "Whistleblower after whistleblower shared stories with my office about Ms. Wertheimer's professional misconduct . . . That's not what our government needed, and it took longer than it should have for this change."
Wertheimer's role got renewed attention since the White House recently announced a different leadership shake-up at FHFA. Last week, the administration removed the agency's director, Mark Calabria, a libertarian economist appointed by President Donald Trump, and named Sandra L. Thompson as acting director. The switch came immediately after the Supreme Court ruled that the FHFA's leadership structure was unconstitutional because it limited the president's ability to remove the FHFA director, except "for cause."
Many people tied to the work of inspectors general grew frustrated over the past week that the White House did not also replace Wertheimer. The White House declined to comment on Wertheimer's resignation on Tuesday.
This needs to be filed under irrelevant! Litigation involving over $308 BILLION DOLLARS against the federal government won't be settled overnight.
Charles J. Cooper of Cooper and Kirk successfully litigated a win for the S&L industry from government overreach during the S&L crisis of the 1980's.
https://en.m.wikipedia.org/wiki/United_States_v._Winstar_Corp.
Inertia is the status quo in DC and while affordable housing and racial equity are important for this administration they can no longer tap the gses as a source of funding because of the cash sweeps and LP for the last 12.75 years as well as all the uncertainty surrounding the cases in the federal circuits.
I think it will be a given that both parties will continue the fight in earnest and on Friday we will see more posturing by each side and David Thompson will likely ask for expanded Discovery to include all periods and intra governmental communications involving a confirmed director.
In the meantime we build capital.
I posted this answer the other day when I looked it up on the oral argument transcript.
David said, "We did file a Takings Claim, but that doesn't resolve this court of deciding the issues we brought on this case!"
I'm pretty sure that there is a Takings Claim floating around in the Court of Federal Claims which apparently is the only venue for Takings Claims against Uncle Suggy!
https://www.fool.com/investing/2021/06/30/heres-why-fannie-mae-and-freddie-mac-were-up-big-t/
Motleys Fool says commons rose because JB is done extending the eviction moratorium. I don't know why jps wouldn't have risen as well...
MONTHLY SUMMARY HIGHLIGHTS
May 2021
• Fannie Mae's Guaranty Book of Business increased at a compound annualized rate of 8.0% in May.
• The Conventional Single-Family Serious Delinquency Rate decreased 14 basis points to 2.24% in May.
• The Multifamily Serious Delinquency Rate decreased 2 basis points to 0.53% in May.
• As of May 31, 2021, 2.2% and 2.0% of our Single-Family Conventional Book of Business based on unpaid
principal balance and loan count, respectively, was in active forbearance, the vast majority of which were
related to COVID-19; 9% of these loans in forbearance (based on loan count) were current.
• As of May 31, 2021, 0.3% of our Multifamily Guaranty Book of Business based on unpaid principal balance
was in an active forbearance, the vast majority of which were related to COVID-19.
• In May 2021, Fannie Mae issued resecuritizations that were backed by $13.0 billion in Freddie Mac securities.
• As of May 31, 2021, Fannie Mae's maximum exposure to Freddie Mac collateral that was included in
outstanding Fannie Mae resecuritizations was $163.9 billion.
IMPORTANT NOTE:
Fannie Mae has been under conservatorship, with the Federal Housing Finance Agency (FHFA) acting as
conservator, since September 6, 2008.
JUST OUT! SCOTUS SUMMER READING LIST: (1) DAS KAPITAL (2) THE MISUNDERSTOOD HUGO CHAVEZ (3) THE EVIL ADAM SMITH (4) BERNIE AND SCOTUS BFF! (5) HOW SCOTUS CAN ACCELERATE NATIONALIZATION (6) THOSE DIRTY CAPITALISTS!
And sadly, I believe we are picking up the legal bills to DEFEND THE LAWSUITS WE INITIATED AGAINST THE FHFA! In other words, WE ARE PAYING FOR THE FHFA DEFENSE ATTORNEYS!
The SCOTUS greenlighting Nationalization of two private corporations in America IS HORRIBLE PRECEDENCE!
OMG!! Has our nation really headed there, let's hope not, but lately I have my serious doubts!
As trying as this clusterf**k is, I'm going to give the system some more time to see if they eventually get it right. If they don't, maybe I can find an island nation with an easily bribable dictator to spend my remaining years....
Let's face it, Karl sounds good in theory but is a disaster when applied to Society:
Karl Marx described a socialist society as such: ... The same amount of labor which he has given to society in one form, he receives back in another. Socialism is a post-commodity economic system and production is carried out to directly produce use-value rather than toward generating profit.
https://en.m.wikipedia.org › wiki
Socialist mode of production - Wikipedia
USSCT SAYS CDC EVICTION MORATORIUM IS NOT OK IN A 5-4 COURT ORDER BUT IT WILL EXPIRE SOON SO WE AIN'T DOING ANYTHING ABOUT IT! Justice Kavanaugh joined by Roberts joined Kagan, Sotomayor, and Breyer:
KAVANAUGH, J., concurring
SUPREME COURT OF THE UNITED STATES _________________
No. 20A169
_________________
ALABAMA ASSOCIATION OF REALTORS, ET AL. v.
DEPARTMENT OF HEALTH AND HUMAN
SERVICES, ET AL.
ON APPLICATION TO VACATE STAY
[June 29, 2021]
The application to vacate stay presented to THE CHIEF
JUSTICE and by him referred to the Court is denied.
JUSTICE THOMAS, JUSTICE ALITO, JUSTICE GORSUCH, and
JUSTICE BARRETT would grant the application.
JUSTICE KAVANAUGH, concurring.
I agree with the District Court and the applicants that
the Centers for Disease Control and Prevention exceeded
its existing statutory authority by issuing a nationwide
eviction moratorium. See Utility Air Regulatory Group v.
EPA, 573 U. S. 302, 324 (2014). Because the CDC plans to
end the moratorium in only a few weeks, on July 31, and
because those few weeks will allow for additional and more
orderly distribution of the congressionally appropriated
rental assistance funds, I vote at this time to deny the ap-
plication to vacate the District Court’s stay of its order. See
Barnes v. E-Systems, Inc. Group Hospital Medical & Surgi-
cal Ins. Plan, 501 U. S. 1301, 1305 (1991) (Scalia, J., in
chambers) (stay depends in part on balance of equities);
Coleman v. Paccar Inc., 424 U. S. 1301, 1304 (1976)
(Rehnquist, J., in chambers). In my view, clear and specific
congressional authorization (via new legislation) would be
necessary for the CDC to extend the moratorium past July
31.
https://www.scotusblog.com/2021/06/divided-court-leaves-eviction-ban-in-place/
"Although the justices do not always reveal their votes on requests for emergency relief, the real estate agents would have prevailed if a fifth justice had voted in their favor, which means that the remaining justices – Roberts, Kavanaugh and Justices Stephen Breyer, Sonia Sotomayor and Elena Kagan – all voted against relief."
"In a Lender Letter sent out Wednesday, Fannie Mae made three key updates to its program:
Allow current subordinate financing, or a second debt that pays an amount not covered by a primary mortgage, to be refinanced at the same time
Allow borrowers who missed payments during the COVID-19 forbearance period to be eligible
Clarified lender requirements pertaining to paystubs for the program
https://www.foxbusiness.com/money/homeowners-covid-mortgage-forbearance-low-income-refinance-eligibility.amp
David Thompson's response to Justice Breyers, "Why didn't you do a Takings Clause case?":
"There's no reason to think
Congress would have wanted to stick the
taxpayers with a big tab for a takings verdict
in the Court of Federal Claims."
I think David Thompson is right!
So now, going forward, it looks a government conservator can self deal or have the best interests of the "public it serves" in ANY ACTIONS IT TAKES THAT ARE CONTRA TO THE PRESERVE AND CONSERVE FUNCTION THAT CONSERVATORS HAVE ADHERED TO FOR CENTURIES!
So why couldn't the FHFA Director restart the cash net worth swipe? Of course they can, BUT the federal government should be liable for violating our Constitutional rights under the 5th Amendment so likely won't.
"establishing a temporary COVID-19 emergency pre-foreclosure period under Regulation X that prohibits servicers from making the first notice or filing required to initiate foreclosure until Dec. 31, the Federal Housing Finance Agency today said that Fannie Mae and Freddie Mac servicers may not make a first notice or filing for foreclosure that would be prohibited by the CFPB rule before it takes effect."
I'm sure "temporary" means a short time period (e.g., a "temporary conservatorship"), I mean how long can that last?
Do you think private capital will be foolish enough to provide the first lost capital to public private entities like the GSEs again when SCOTUS just gave legislators a nationalization playbook?
https://www.cnbc.com/video/2021/06/29/coldwell-banker-ceo-on-surging-home-prices-fundamentals-are-strong.html
https://www.cnbc.com/2021/06/29/cfpb-beefs-up-protections-for-homeowners-but-will-not-ban-foreclosures-.html
https://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=FHFA-Protects-Borrowers-After-COVID-19-Foreclosure-and-REO-Eviction-Moratoriums-End.aspx
https://www.housingwire.com/articles/fhfa-wont-give-servicers-break-on-cfpb-rule/
https://www.housingwire.com/articles/april-home-price-increase-truly-extraordinary/
"“Today, many families’ finances are improving allowing them to exit forbearance,” said Thompson. “The protections FHFA is putting in place today will protect vulnerable families as they begin their financial recovery from the impact of the COVID-19 pandemic.”
According to the new CFPB rule, servicers can initiate a foreclosure action only after the borrower has submitted a loss mitigation application, and either isn’t eligible for, breaks or rejects a loss mitigation agreement. Those extra steps do not apply if the borrower was already six months past-due by March 2020 or if the property is abandoned.
The rule also establishes expectations for how servicers should communicate with borrowers about loss-mitigation options. The new regulation allows escrow-shortages to be included in a loss-mitigation plan, to provide an alternative to paying excessive amounts in a short period."
"It is frustrating that the State of California and numerous local governments have not quickly disbursed funds to those in need, especially to mom-and-pop rental housing providers who have not seen any rent payments yet. They are still required to pay the mortgage, insurance, taxes, maintenance, and other expenses.”
https://caanet.org/governor-signs-short-term-extension-of-covid-19-eviction-moratorium/
"Even without the achievement of that target, Calabria’s tenure was notable because he started the process of restoring Fannie and Freddie’s depleted capital reserves so they would be secure in the event of a future downturn. He also sought to clarify the dance around the federal government’s implicit guarantee from the federal government that enables the GSEs to issue low-rate bonds and write low-coupon loans. However, a change in the status would require legislation that either made the guarantee explicit or ended it altogether, and legislative changes continue to be a non-starter."
Are you still confused? You see the implicit guarantee is the lynchpin that is one of the main reasons that the primary mortgage markets unload their illiquid 30 year mortgages on the gses!
FDR during the Great Depression created Fannie Mae as a 100% federal government entity to buy mortgages from financial institutions. Originally THERE WAS NO 30 YR FRM, THEY WERE LIKE 5 YEARS WITH A BALLOON PAYMENT DUE AT THE END OF THE 5 YEARS. HENCE THESE MORTGAGES BECAME A LIABILITY ON THE FEDERAL GOVERNMENTS BALANCE SHEET!
Fast forward 30+ years to 1968. LBJ was facing skyrocketing deficits with his Great Society Plan and financing the Vietnam War and at that point the idea was to private Fannie Mae as a private corporation. This was know as a government sponsored enterprise because it was largely assumed that the federal government would come to their rescue if necessary. 4 years later Freddie Mac was created. In 2008, the federal government stepped in with originally the $100B PSPA and that increased to $200B and then the nws in 2012.
SO THERE IS NO FEDERAL GOVERNMENT GUARANTEE FOR FANNIE MAE OR FREDDIE MAC OR ON THE $7.2T IN MBS OUTSTANDING, DO YOU UNDERSTAND?
MC tried to decrease the gses footprint and put more private capital into a 1st Loss Position via retained earnings and potential future equity raises.
"Teach your tongue to say "I don't know" instead of to make up something. ..."
https://www.housingwire.com/articles/house-price-increases-still-growing-fhfa/
6/29/2021
FHFA House Price Index Up 1.8 Percent in April; Up 15.7 Percent from Last Year
?Washington, D.C. – House prices rose nationwide in April, up 1.8 percent from the previous month, according to the latest Federal Housing Finance Agency House Price Index (FHFA HPI®). House prices rose 15.7 percent from April 2020 to April 2021. The previously reported 1.4 percent price change for March 2021 was revised upward to a 1.6 percent increase.
For the nine census divisions, seasonally adjusted monthly house price changes from March 2021 to April 2021 ranged from +1.2 percent in the West North Central division to +2.6 percent in the Mountain and Middle Atlantic divisions. The 12-month changes ranged from +13.0 percent in the West North Central to +20.6 percent in the Mountain division.?
“House prices recorded another monthly and annual record in April," said Dr. Lynn Fisher, FHFA's Deputy Director of the Division of Research and Statistics. “This unprecedented price growth persists due to strong demand, bolstered by still-low mortgage rates, and too few homes for sale."
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 July 27, 2021 with monthly data through May 2021. ?
https://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=FHFA-House-Price-Index-Up-1pt8-Percent-in-April-Up-15pt7-Percent-from-Last-Year.aspx
https://www.cnbc.com/2021/06/29/home-price-gains-in-april-truly-extraordinary-sp-case-shiller-says.html
Don't understand:
Does this look like an EXPLICIT GUARANTEE ON FANNIE MAE MBS TO YOU? IT APPLIES TO ALL OF THE $7.2T OF MBS OUTSTANDING:
"Principal and interest payments on Fannie Mae-issued certificates by are not guaranteed by the United States and do not constitute a debt or obligation of the United States or any of its agencies or instrumentalities other than Fannie Mae."
https://capitalmarkets.fanniemae.com/mortgage-backed-securities/single-family-mbs
The U.S. government does not explicitly guarantee Fannie Mae and Freddie Mac.
https://www.newyorkfed.org › ...PDF
The Appropriate Government Role in US Mortgage Markets - Federal Reserve Bank of New York
I think Guido's comment about the purpose all along of the NWS was for the Executive branch using nonappropriated Congressional funding for non FHFA agency and non housing related purposes (e.g., Wall or ACA funding) may become relevant.
The 5th Circuit may allow for expanded Discovery Documents to include intra governmental communications from August 17, 2012 - June 23, 2021 related to the POTUS relationship and policy between him and the FHFA.
That could include sensitive documents within the administration(s) that shows that the reason for continuing the cash sweeps was to fund these presidential pet projects with shareholders money.
The most sensitive documents will likely be in camera only, but the trial Judge will see it and may allow the Collins Plaintiffs to amend their Complaint to include a Takings Claim, SINCE YOU CAN'T STEAL FROM SHAREHOLDERS TO FUND THE PUBLIC FISC!
Not a total loss in Collins, we should get some idea about the approach the parties are going to take moving forward this Friday.
I would imagine that the Collins Plaintiffs will ask for expanded Discovery to include emails and documents from the DJT administration as well as any time period involving an unconstitionally insulated confirmed FHFA Director going back to the August 17, 2012 announcement of the nws.
Do you have ANY DOUBT that we would have been much further along in the recap, relist, and release process BUT FOR the fact that DJT COULDN'T INSTALL MC ON JANUARY 20, 2017?
Do you think that Mel Watt and the DJT administration saw eye to eye on gse housing finance policy?
What about other damning government documents from August 17, 2012?
"Were it not for that pro-
vision, they suggest, the President might have replaced one
of the confirmed Directors who supervised the implementa-
tion of the third amendment, or a confirmed Director might have altered his behavior in a way that would have bene-
fited the shareholders."
While the courts continue to work out these issues, the gses should continue retaining earnings.
Congress can write pretty much whatever they want but always look at the judicial rulings and interpretation by the courts when crafting new legislation based on previously enacted statutes.
I'm not sure about the Act that created and regulates Farmer Mac but I'm sure you can find it on the web and search the Statute.
The implicit guarantee on $7.1T of gse MBS saves the US GOVERNMENT alot in extra interest payments on the US Debt so the US Congress may not want an explicit government guarantee on them. So having private capital in a 1st Loss Position is beneficial to the US GOVERNMENT.
It seems that the interest rates paid by governments in the G-7 nations have been steadily decreasing since they peaked in the late 1970's/early 1980's to where we are today! Lots of different theories and guesses as to why. Keeping the $7.1T of gse MBS OFF the federal government balance sheet helps keep the interest rates the UST pays to bondholders lower.
AS A MATTER OF FACT, IN 1968 WHEN LBJ WAS CREATING HIS GREAT SOCIETY AND THE US GOVERNMENT WAS PAYING FOR THAT AND THE VIETNAM WAR THEY DECIDED TO REMOVE QUITE A BIT OF EXPLICITLY GUARANTEED US MORTGAGES OFF THE FEDERAL GOVERNMENT BALANCE SHEET.
Guess how they did it? By privatizing Fannie Mae, with private capital in a first loss position (I believe S&L's were the first to put up private capital)! In 1973, Freddie Mac was created as a private enterprise to compete with Fannie Mae.
HousingWire Daily
A deep dive on the Supreme Court's FHFA ruling
https://www.housingwire.com/
Brooge, I am pretty sure, according to the above listen that the Primary Mortgage Market is pressing hard to lift the caps designed by MC to shrink the gses footprint! They also will likely take a crack at eliminating the 50bp adverse market fee!
Sandra L Thompson won't be easily hoodwinked by the incessant demands put upon her by the tbtf banks and the Primary Mortgage Market. This ain't her first rodeo and having spent 20 years at FDIC before joining FHFA in 2013, unlike the clueless USSCT Justices she should know all too well exactly about the primary mortgage markets role in taking down the world economy during the GFC.
Sandra L Thompson seems all about subsidizing mortgage access and mortgage rates for minorities at the expense of the wealthier income spectrum of the middle and lower to middle upper income households that MC had been targeting in his low risk credit and high immediate capital build and who largely are the major recipients of 2020-2021 mortgage refi boom!
MC realized that if the gses were to EVER exit Conservatorship, he and SM would have to recapitalize them. This in his vision looked like: (1) Grow earnings asap while minimizing risk (2) Renegotiate the commitment UST line of credit with SM with an appropriate commitment fee (3) try to settle some or all the lawsuits with a $5 billion maximum cap on pending unresolved Litigation and (4) do a new equity offering.
The new administration, Yellen and Sandra L Thompson probably ALL SEE EYE TO EYE ON THE FUTURE DIRECTION OF THE GSES, namely to increase mortgage access RESPONSIBLY (at least optically) to minorities and have a cross subsidization from the more wealthy Americans (who do you think is picking up the tab for the 2 million plus forebearances, ITS THE CURRENT REFINANCERS).
It wouldn't surprise me if Sandra L Thompson IS the next FHFA Director. On the other hand, JB'S closest advisors may have a different person in mind for a 5 year term!
It will be telling to see who it is!
That said, once the new administration decides whatever the hell it wants to do, JB can instruct Yellen and his new Director whatever his vision is in a 5th Amendment that could be 180 degrees different than the 4th Amendment.
Stay tuned, the twisted saga of the 12.75+ year conservatorship will likely continue for some time.
Looks like the tbtf banks have too much capital! So reassuring to know that the originators of the PLS MARKET ARE OVER CAPITALIZED! Good thing we have a conservator who is following the law by preserving and conserving our capital, right?
https://www.cnbc.com/2021/06/28/morgan-stanley-doubles-its-dividend-as-banks-start-to-raise-payouts-following-fed-stress-tests.html