something me and you share , fun.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Pls put your seat belt on... and welcome Ben Cason to HUB!
There are more than one Billionaire this time... over 6$ for sure!
Carson also supported scaling back and eliminating various federal programs he deemed “wasteful, inefficient or unnecessary” in a six-page document outlining his positions during the race. He indicated he would support privatizing Fannie Mae and Freddie Mac, which insure mortgages......
http://www.realtor.com/news/trends/ben-carson-as-hud-secretary-what-could-it-mean-for-housing/
If appointed secretary of Housing and Urban Development, retired neurosurgeon Ben Carson — rumored to be President-elect Donald Trump’s top pick — would likely reinforce housing discrimination in an effort to reduce “communist” government overreach.
Carson is a vocal critic of HUD’s “affirmatively furthering fair housing,” an Obama-era rule aimed at strengthening a stipulation in the 1968 Fair Housing Act that requires communities “affirmatively further” fair housing practices.
http://www.alternet.org/news-amp-politics/hud-secretary-front-runner-ben-carson-recently-called-fair-housing-communist
maybe 5$ mark this week!
Mortgage Rates Move Higher Headed into Holiday WeekendFont size: A | A | A
undefined undefined | Marketwired
MCLEAN, VA--(Marketwired - Nov 23, 2016) - Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher with the average 30-year fixed-rate mortgage topping 4 percent for the first time since 2015.
News Facts
30-year fixed-rate mortgage (FRM) averaged 4.03 percent with an average 0.5 point for the week ending November 23, 2016, up from last week when it averaged 3.94 percent. A year ago at this time, the 30-year FRM averaged 3.95 percent.
15-year FRM this week averaged 3.25 percent with an average 0.5 point, up from last week when it averaged 3.14 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.12 percent this week with an average 0.4 point, up from last week when it averaged 3.07 percent. A year ago, the 5-year ARM averaged 3.01 percent.
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.
Quote Attributed to Sean Becketti, chief economist, Freddie Mac.
"In a short week leading up to the Thanksgiving holiday, the 10-year Treasury yield rose 8 basis points. The 30-year mortgage rate followed suit, rising 9 basis points to 4.03 percent. This increase marks the first week since 2015 that mortgage rates have risen above 4 percent."
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=3083999
Freddie Mac (FMCC) Can Bag Bigger Mortgages but That Doesn’t Change Anything
BY VIRAJ SHAH · NOVEMBER 25, 2016 04:20 AM PST
Share on FacebookTweet about this on TwitterShare on Google+Share on RedditShare on LinkedInPrint this pageEmail this to someone
The Federal Housing Finance Agency (FHFA) recently announced increase in loan limits of Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) and Federal Home Loan Mortgage Corp (OTCMKTS:FMCC). The loan limit for mortgages is revised upwards from $417,000 to $424,100. The limit also got changed for an expensive home from $625,500 to $636,150 has been announced.
Changes to help first time buyers
However, the threshold limit is unlikely to make any big changes though brokers and realtors believe that the changes, effected probably for the first time in a decade, would help first-time buyers to enter the market. The perception is that the criteria are not rigid when the mortgage is backed by government for credit and the down payment.
In the past ten years, Fannie Mae (FNMA) and Freddie Mac (FMCC) bought loans with balances of a maximum of $417,000. However, this excluded high-cost areas where the limit was $625,500 until the most recent announcement.
Both the industry and homebuyers attach much importance to the threshold limit citing increased interest rates sometimes than government-backed mortgages. However, the situation has changed in the recent past. For instance, Wells Fargo & Co. (NYSE:WFC) quoted 4.25 percent for a 30-year fixed mortgage and four percent for a jumbo loan.
Another key factor is the tough requirements from lenders for jumbo mortgages like superior credit scores. Similarly, down payment is ranged between 15 and 20 percent.
Steady progress by home market
In 2011, the mortgage market crashed to $154,600. Since then, it has been a steady progress with home prices hitting a high of $247,600 in June reflecting 7.9 percent from over June 2006 prices. Aside from that, home-price index witnessed 6.1 percent YOY growth in the third quarter.
According to a Fairway Mortgage loan officer, Phil Ganz, pointed out that several first-time buyers were prevented from entering the housing market citing the cost to get government-backing for the mortgages. He believes that the first timer would get a change to buy home when the limits are increased.
Though there are number of potential buyers, they could not afford to provider more than three percent as down payment. On the other hand, Guy Cecala, Insider Mortgage Finance publisher, thinks that this is not a big increase to have any major impact.
Related Posts from InvestCorrectly
http://investcorrectly.com/20161125/fannie-mae-fnma-freddie-mac-fmcc-can-bag-bigger-mortgages-doesnt-change-anything/
maybe Monday open at 4$ close 5.30$!!!???
There are more than one billionaires
Another Sweeping Rebuke Of Government Secrecy
http://www.investors.com/politics/commentary/another-sweeping-rebuke-of-government-secrecy/
A Look At the Use of Executive Privilege: Fannie Mae (FNMA) and Freddie Mac (FMCC)
http://investcorrectly.com/20160616/look-use-executive-privilege-fannie-mae-fnma-freddie-mac-fmcc/
Many were surprised when President Barack Obama used “presidential communications privilege” with regard to documents pertaining to Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA), and Federal Home Loan Mortgage Corp (OTCMKTS:FMCC). Let’s look at what it is and past instances in which it was used?
What is presidential communications privilege?
Presidential communications privilege is a power which is used by President and his team to resist certain subpoenas and other interventions by the legislative and judicial branches of government with regard to accessing information and documents related to the government.
What are the different instances when executive privilege was used?
George Washington in 1796 refused to provide documents related to Jay treaty to House of Representatives.
President Thomas Jefferson for trial on Aaron Burr in 1809.
President Andrew Jackson in 1833 when he was asked to provide documents with regard to removal of federal deposits.
Harry S Truman in 1948 in Hiss-Chambers case.
Eisenhower in 1954 used privilege to refuse McCarthy’s Committee to access monitored telephone calls.
President Richard Nixon in 1974 during Watergate Scandal.
“To read the Article II powers of the President as providing an absolute privilege as against a subpoena essential to enforcement of criminal statutes on no more than a generalized claim of the public interest in confidentiality of nonmilitary and non-diplomatic discussions would upset the constitutional balance of ‘a workable government’ and gravely impair the role of the courts under Article III.” Because Nixon had asserted only a generalized need for confidentiality, the Court held that the larger public interest in obtaining the truth in the context of a criminal prosecution took precedence.
“Once executive privilege is asserted, coequal branches of the Government are set on a collision course. The Judiciary is forced into the difficult task of balancing the need for information in a judicial proceeding and the Executive’s Article II prerogatives. This inquiry places courts in the awkward position of evaluating the Executive’s claims of confidentiality and autonomy, and pushes to the fore difficult questions of separation of powers and checks and balances. These ‘occasion[s] for constitutional confrontation between the two branches’ are likely to be avoided whenever possible. United States v. Nixon, supra, at 692.” [7]
Note from Wikipedia:
The Supreme Court confirmed the legitimacy of this doctrine in United States v. Nixon, but only to the extent of confirming that there is a qualified privilege. Once invoked, a presumption of privilege is established, requiring the Prosecutor to make a “sufficient showing” that the “Presidential material” is “essential to the justice of the case” (418 U.S. at 713-14). Chief Justice Burger further stated that executive privilege would most effectively apply when the oversight of the executive would impair that branch’s national security concerns.
In 1998, President Bill Clinton used executive privilege during investigation into Lewinsky scandal. However, Court refused the executive privilege and the case was lost by Government.
President George W. Bush used executive privilege on multiple instances.
Scandal involving FBI over misuse of documents (December, 2001).
Did not disclose VP Dick Cheney’s meetings with energy executives (2004).
Denied congressional subpoenas request related to former presidential counsel Harriet Miers and former political director Sara Taylor (2007).
Vollmer used executive privilege during Madoff investigation and refused to answer few questions asked by before the US House Committee on Financial Services.
The Obama Administration most recently used Presidential Privilege in documents related to Operation Fast and Furious to withhold documents relating to Department of Justice then again to withhold documents relating to Fannie Mae (FNMA) and Freddie Mac (FMCC).
Judge Amy Berman Jackson denied Obama’s executive privilege claim in the Fast and Furious case:
“There is no need to balance the need against the impact that the revelation of any record could have on candor in future executive decision making, since any harm that might flow from the public revelation of the deliberations at issue here has already been self-inflicted,” Jackson wrote. “The Department itself has already publicly revealed the sum and substance of the very material it is now seeking to withhold. Since any harm that would flow from the disclosures sought here would be merely incremental, the records must be produced.”
Politico
What next?
Based on above instances it is clear that President Barack Obama is not the first one to withhold documents. It is something which has happened in the past as well, although the instances are totally different. Instances which are not related to national security can always be questioned. Use of third amendment by FHFA in case of Fannie Mae (FNMA) and Freddie Mac (FMCC) leaves lot of questions unanswered. Is the government using executive privilege to hide its true motivation for the sweep?
It will be interesting to see what action the judiciary takes? Judge Sweeney has questioned how the government has protected documents.
Some interesting social media comments and reads
#FANNIEGATE $FNMA Looks like David H Stevens is still pushing his "law is tired and old" philosophy pic.twitter.com/mW58rjgnPD
— Glen Bradford (@DoNotLose) June 15, 2016
Related Posts from InvestCorrectly
Fannie Mae (FNMA) and Freddie Mac (FMCC) Investors Elated By Trump Win: Here are 3 Reasons Why
http://investcorrectly.com/20161123/fannie-mae-fnma-freddie-mac-fmcc-investors-elated-trump-win-3-reasons/
Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) and Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) is seeing renewed interest. Investors and billionaire John Paulson expect a policy clean up for mortgage sector from Trump.
Hedge fund billionaire Paulson is expecting humongous profits through Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) and Federal Home Loan Mortgage Corp (OTCMKTS:FMCC). Investors have struggled to get a pie of their dividends from both the companies as the government took majority of the profits. The companies were bailed out by government by shelling out $187.5 billion in 2008.
Billionaire Paulson is having a stake in both Fannie Mae and Freddie Mac. Shareholders continue to fight with government through lawsuits without much success. But now the chances of bringing back a smile to the investors has increased. Shares of mortgage lenders have almost doubled ever since trump won.
Here is why investors are cheering a Trump win, below are the three reasons.
Policy cleanup
Investors are expecting a radical policy cleanup which will help the housing and mortgage lobby finally get their due. After Fannie Mae and Freddie Mac were acquired by the government, the investors have been looking for respite. Though Trump never formally acknowledged housing-mortgage industry and their woes during his Presidential campaign, The Republican Party has long been calling it a corrupt business model that needs restructuring.
End to litigations
Years of litigation with the government has rendered investors helpless as the Obama administration took control of both mortgage agencies and kept most of their profits. However, a new Republican White House may mean an end to litigations. A pro-business Trump and his economic adviser during campaign Paulson are expected to ensure that the institutionalization of housing mortgage market does not get out of hand. As documents get released and several advocacy groups find their voice in Trump’s presidency, litigations may end and investors may get their due.
The presence of Paulson
The move to sweep all profits “violated the rights of thousands of shareholders across America, “This action should be reversed, and we look forward to an outcome that restores the rights of shareholders in these companies.” According to Paulson & Co
Paulson’s association with the ‘Informal Coalition on Housing Finance Reform’ should not be ignored. As more hedge fund managers and housing advocates find their space in Washington DC, it is highly likely that a pro-investor policy could turn the tables for good.
Academicians and policy think tanks are backing Fannie Mae and Freddie Mac shareholders. A new White House brings a new ray of hope for investors.
1:30 court ruling?
Modest Economic Growth Expected Despite Legislative and Regulatory Uncertainty
PR Newswire
WASHINGTON, Nov. 21, 2016
WASHINGTON, Nov. 21, 2016 /PRNewswire/ -- The forthcoming change in the U.S. administration poses new uncertainties about the economy, but modest growth is still expected for 2016 and 2017, according to Fannie Mae's (OTC Bulletin Board: FNMA) Economic & Strategic Research (ESR) Group's November 2016 Economic and Housing Outlook. The slowdown in job growth and business investment suggests the economic expansion has transitioned to a late-cycle phase, in which growth tends to moderate and, in turn, makes the economy more vulnerable to shocks. Although increased market volatility may occur in the medium term as policy developments take shape, the ESR Group continues to expect economic growth to pick up in the second half of this year, averaging 2.4 percent, following 1.1 percent growth during the first half. The full-year 2016 growth forecast remains at 1.8 percent, with a similar pace of growth expected for 2017.
"We haven't changed the general tone of our forecast at this time, but we will incorporate new policy assumptions as they become more concrete. Given campaign themes, we may see some changes in policies regarding corporate and individual tax rates, infrastructure investment, government spending, health care, and immigration," said Fannie Mae Chief Economist Doug Duncan. "Depending on the incoming President's policy priorities, our forecast for 2017 is subject to both upside and downside risks. For example, we expect near-term growth would get a boost from any tax cuts and spending increases that are made, but if new policies result in sharply higher tariffs on China and Mexico, rethinking the Trans-Pacific Partnership, and renegotiating the North American Free Trade Agreement, it would likely drag on growth."
"In our fourth quarter GDP forecast, we expect domestic sales to strengthen and business investment in equipment to rebound, given a recent improving trend in core durable goods orders. However, we don't anticipate a substantial turnaround going forward given the uncertainty of government policy facing businesses," said Duncan. "Consumer spending is also likely to be a key growth driver, although we expect consumers will remain cautious given recent weakening in real disposable income. We also expect that residential investment will no longer drag on GDP as single-family construction spending has showed signs of stabilizing. However, the lack of homes for sale, particularly at the lower end of the market, continues to be a significant challenge for housing. Demand from first-time buyers has increased with household formation and is outpacing supply, leading to significant price increases and affordability challenges for entry-level buyers. Home purchase affordability will be constrained further if the recent pickup in mortgage rates persists, which would present a downside risk to our forecast of housing and mortgage activity."
Visit the Economic & Strategic Research site at www.fanniemae.com to read the full November 2016 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, Housing Forecast, and Multifamily Market Commentary. To receive e-mail updates with other housing market research from Fannie Mae's Economic & Strategic Research Group, please click here.
Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. 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 and follow us on twitter.com/fanniemae.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/modest-economic-growth-expected-despite-legislative-and-regulatory-uncertainty-300366329.html
SOURCE Fannie Mae
had the link in posted!
5$ is coming ...woo ..woo..and 20$ http://www.valuewalk.com/2016/11/bruce-berkowitz-fannie-conference-call/
We are in talks with DOJ and willing to settle but ready to see it through.
We are ready to win this case and have 6 foot swords in our office.
Bruce Berkowitz says he is very excited and said David has done a great job and moves onto St Joe – we will end there stay tuned for transcript later. Also video below
http://www.valuewalk.com/2016/11/bruce-berkowitz-fannie-conference-call/
Bruce Berkowitz’s analyst? on DC appeals court – informal terms they heard 308 cases and just 4 remain so we should be close it is probably taking so long is because dissent is being written. Fortunately two of the judges seem very favorable especially on six key issues. We only need to win on one of them.
Was FHFA genuine and operating in solvent manner – obviously not if every nickel is given away as Judge Ginsberg noted. Government says companies were in death spiral but this is nonsense because they have generated huge profits – and Government itself knew this – Fannie CFO told them right before net sweep that they were massively profitable
Treasury imposed net sweep and HERA prevents that
Treasury exceeded authority for proceeding new securities after 2009 when net sweep happened in 2012.
Breach of fiduciary – self dealing for no consideration – its classic breach
Breach of contract – Right to liquidation preference and dividend stops on common and they are still doing it. Tres is paying itself dividends
Breach of good faith – No one would give them $33B they raised in offerings if they could just send money to affiliated entity.
These 6 are key and we think we should prevail. We could get $20 a share on breach of contact claim.
http://www.valuewalk.com/2016/11/bruce-berkowitz-fannie-conference-call/
i don't but ppl trade few mils shares in 30 mins they may know!
court ruling today at 1:30pm Est maybe
he did bought some ....greedy very greedy
Stop lost should be set 2.83$! GLTA
Ackman maybe push this up before major Selling...who know what ever happened in conversation with Trump! Good or Bad ...that should be the way Billionaires done.
Then there are mortgage giants, Fannie Mae and Freddie Mac, which are still
under government conservatorship. Their stock actually moved higher with
some investors thinking they`ll be recapitalized and released, but Donald
Trump said nothing about the two during the campaign. Now, we have a
Republican-controlled Congress, and the mortgage giants generate billions
of dollars that go straight to the treasury. That money could be well
spent on the infrastructure projects Donald Trump has promised.
ROOD: The GSEs Fannie Mae and Freddie Mac are throwing off roughly around
$15 billion a year in cash to the treasury. That pays a lot of bills.
http://nbr.com/2016/11/14/transcript-nightly-business-report-november-14-2016/
Bill Ackman : "I think it's very good for the companies that we own. We're long America. I have John Oliver to take care of Herbalife. I have Donald Trump to take care of the rest of the portfolio."
https://www.bloomberg.com/gadfly/articles/2016-11-15/bill-ackman-trusts-trump-to-make-returns-great-again
Corker want to buy!
Investors Unite Teleconference: What is Risk Sharing? And how does it Work?Font size: A | A | A
undefined undefined | Comtex Newswires
On Tuesday, November 15 at 10:30 am EST, Investors Unite will hold a teleconference to discuss risk sharing in the secondary mortgage market, a major policy that could affect Fannie Mae and Freddie Mac moving forward.
The teleconference will feature Investors Unite Executive Director Tim Pagliara, former Chief Financial Officer and Vice Chairman of the Board of Fannie Mae Tim Howard, and the Head of External Affairs for the Community Mortgage Lenders of America Rob Zimmer.
To join the teleconference, please RSVP to media@investorsunite.org.
WHO: Tim Pagliara, Investors Unite Executive Director and CapWealth Advisors Chairman and CEO
Tim Howard, Former Chief Financial Officer and Vice Chairman of the Board of Fannie Mae
Rob Zimmer, Community Mortgage Lenders of America Head of External Affairs
WHAT: Investors Unite Risk Sharing Call
WHEN: Tuesday, November 15th, 10:30 am EST
DIAL IN: 800-895-2195; Conference ID: Investors
RSVP: Please RSVP to media@investorsunite.org
About Investors Unite: Formed by Tennessee investor and CapWealth Advisors Chairman and CEO, Tim Pagliara, Investors Unite (investorsunite.org) is a coalition of over 1,400 private investors from all walks of life, committed to the preservation of shareholder rights for all invested in Fannie Mae and Freddie Mac. The coalition works to educate shareholders and lawmakers on the importance of adopting GSE reform that fully respects the legal rights of Fannie Mae and Freddie Mac shareholders and offers full restitution on investments.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/investors-unite-teleconference-what-is-risk-sharing-and-how-does-it-work-300361592.html
SOURCE Investors Unite
http://rt.prnewswire.com/rt.gif?NewsItemId=DC42918&Transmission_Id=201611140912PR_NEWS_USPR___
Wall Street Wants To Buy Fannie Mae And Freddie Mac Dirt Cheap
http://seekingalpha.com/article/4023062-wall-street-wants-buy-fannie-mae-freddie-mac-dirt-cheap
Pershing Square's Bill Ackman says he's 'extremely bullish' on Trump
http://www.cnbc.com/2016/11/10/pershing-square-portfolio-manager-bill-ackman-speaks-at-dealbook-conference.html
DJ Fannie, Freddie Shares Soar Even as Fate Remains Foggy
Nov 10, 2016 19:41:00 (ET)
By John Carney
It's back to the drawing board for any overhaul of housing finance -- and the future of Fannie Mae and Freddie Mac.
Shares of the mortgage-finance companies are up sharply since election day even though President-elect Donald Trump gave little if any indication during his campaign of what might happen to them in his administration. Over the past two days, shares in both Fannie Mae and Freddie Mac have each risen more than 50%.
"In talking to the campaign, the one thing they are telling me is that anyone who thinks they know what Trump thinks about Fannie and Freddie is making it up," said David Stevens, president of the Mortgage Bankers Association.
There have been many proposals to revamp housing finance but little serious movement in the eight years since Fannie Mae and Freddie Mac were taken over by the government. It is possible that change in the White House will restart overhaul efforts -- but those may not closely resemble earlier legislation.
"This remains the great unfinished business from the great recession," said Ed DeMarco, former acting director of the Federal Housing Finance Agency, which oversees the firms, and now a senior fellow at the Milken Institute Center for Financial Markets. "Having a new administration and a new Congress creates a meaningful opportunity to pick this challenge up again."
And there is another unknown facing Fannie Mae and Freddie Mac: Rep. Jeb Hensarling (R., Texas). Aides to Mr. Trump are considering him as a contender for Treasury secretary, The Wall Street Journal reported Thursday.
Yet he has repeatedly called for the mortgage giants to be eliminated. If he joins a Trump cabinet, his view could hold considerable sway.
And even if Mr. Hensarling stays in the House, he will matter to any housing-finance effort. His role as chairman of the House Financial Services Committee makes it unlikely any legislation dealing with Fannie and Freddie could pass without his approval.
Mr. Hensarling said in an interview Thursday that he hasn't had "detailed discussions" yet with the Trump transition team on housing-finance overhauls, "but it is something I am very hopeful that we can accomplish in this administration."
Meanwhile, the center of gravity for revamping housing finance has likely shifted, according to veterans of the earlier overhaul efforts. Previous proposals, one from Sens. Bob Corker (R., Tenn.) and Mark Warner (D., Va.) in 2013 and another from Sens. Tim Johnson (D., S.D.) and Mike Crapo (R., Idaho), were aimed at forging compromises acceptable to Republicans and Democrats on Capitol Hill as well as the Obama administration. At the time, Democrats not only controlled the White House but the Senate as well.
New proposals are likely to be a compromise between different factions of the Republican Party on Capitol Hill and the Trump administration. It will take time to discern how those forces will coalesce on the issue.
"It is impossible to anticipate with any certainty what path we will see on Fannie and Freddie reform in the next few years of Republican control, as the Republican caucus is divided and Trump himself has expressed no public view on the issue," said Jim Parrott, a former senior adviser to the Obama administration who now advises financial institutions on housing finance issues through his firm, Falling Creek Advisors.
The divide among Republican lawmakers can be viewed through the prism of the prior Capitol Hill proposals. The Senate proposals included a role for the government in backstopping the secondary mortgage market, while separate House legislation introduced by Mr. Hensarling left Ginnie Mae as the only source of government support for the housing market.
"All the earlier proposals are dead. They were products of attempts to satisfy the Obama administration and Hill Republicans," said Peter Wallison of the American Enterprise Institute. "The first part of that equation is no longer relevant."
Mr. Parrott agrees. "If we see legislation at all in this space, it likely comes in the form of a compromise between these two groups of Republicans," he said.
Shares in Fannie Mae and Freddie Mac, which still trade publicly even though the firms are in government conservatorship, have been buoyed by hopes a new administration might not adopt the Obama administration's idea of winding down the mortgage finance giants. Not everyone agrees, though.
"There's nothing that Trump has ever said, or that people around Trump said, that would suggest that he would be interested in restoring Fannie Mae and Freddie Mac to their status where the profits go to shareholders and the risk is borne by taxpayers," Mr. Wallison said.
One source of hope for Fannie and Freddie shareholders may be the role of hedge-fund manager John Paulson as a backer of Mr. Trump. Mr. Paulson's Paulson & Co. has been among the hedge funds that have financed a lobbying campaign aimed at lifting government control of the companies and ending the sweep of their profits into the U.S. Treasury.
But any plan to release Fannie and Freddie would likely meet strong opposition from Republican lawmakers. One thing that the earlier legislative proposals that garnered Republican support all shared is that they included a plan to wind down the companies rather than release them.
--Ryan Tracy contributed to this article.
Write to John Carney at john.carney@wsj.com
(END) Dow Jones Newswires
November 10, 2016 19:41 ET (00:41 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
MW Fannie, Freddie surge as Trump taps advisors who back privatization
Nov 10, 2016 15:51:00 (ET)
By Andrea Riquier
Will the Trump administration undo the 2012 sweep of profits to the Treasury?
Shares of Fannie Mae and Freddie Mac have rallied this week as President-elect Donald Trump surrounds himself with advisors seen as sympathetic to shareholders of the two mortgage companies.
Shares of Fannie are up about 41% since Tuesday, and Freddie shares have risen about 46% in that time.
Fannie (FNMA) and Freddie (FMCC) were placed into federal conservatorship during the 2008 financial crisis, and in 2012 the Obama administration amended the terms of the 2008 agreement to sweep quarterly profits from the two enterprises, a move that's been challenged in court by shareholders.
Ken Blackwell, who's been tapped to lead the domestic transition team, wrote an op-ed (http://thehill.com/blogs/congress-blog/economy-budget/207937-treasury-stealing-from-fannie-and-freddie-shareholders) in 2014 in which he called the Treasury arrangement "theft of private property." In the piece, Blackwell noted that there is a "bipartisan consensus on how to wind down Fannie and Freddie."
On Wednesday, the Wall Street Journal reported (http://www.wsj.com/articles/donald-trumps-financial-advisory-team-stocked-with-wall-streeters-1478730578?mod=djemMoneyBeat_us) that hedge fund investor John Paulson had been tapped to be a Trump advisor because of his understanding of the housing market. Paulson is known (https://www.amazon.com/Greatest-Trade-Ever-Behind-Scenes/dp/0385529945/ref=sr_1_1?ie=UTF8&qid=1478808291&sr=8-1&keywords=the+greatest+trade+ever) for shorting the subprime mortgage market as the housing bubble inflated a decade ago.
Paulson's company has donated extensively (http://www.wsj.com/articles/bets-on-fannie-and-freddie-get-help-from-lobbyists-1463087581) to nonprofits and lobbyists advocating for the release of the enterprises from government controls, according to an earlier Journal article.
Other Trump advisors have a less explicit stake in ending conservatorship, but are likely to be sympathetic to the shareholder interests. Steven Mnuchin, a Goldman Sachs veteran who's reportedly on the short list (http://www.marketwatch.com/story/gingrich-palin-among-possible-trump-cabinet-picks-obamacare-defenders-vow-total-war-2016-11-10) to be Treasury secretary, serves on the board (https://searsholdings.com/invest/corporate-governance/board-of-directors) of directors of Sears Holdings(SHLD) with Bruce Berkowitz, CIO of Fairholme Capital Management, one of the firms leading the shareholder lawsuits (http://www.marketwatch.com/story/what-one-big-fund-is-saying-about-fannie-freddie-2014-03-10).
-Andrea Riquier; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
11-10-16 1551ET
Copyright (c) 2016 Dow Jones & Company, Inc.
Bill Ackman could hardly contain himself: American voters had just elected a businessman to run the country — someone who would steer the U.S. in the right direction.
While others were skittish about Donald Trump, Ackman felt nothing but optimism Wednesday morning when he heard the election results.
on CNBC live !
10 House Candidates with the Most Mortgage Backing
http://www.nationalmortgagenews.com/gallery/10-house-candidates-with-the-most-mortgage-backing-1089160-1.html
No. 10: Kevin McCarthy, R-Calif.
Total Contributions from Mortgage Industry: $23,600
Total Contributions Overall: $7,217,621
No. 9: Brad Sherman, D-Calif.
Total Contributions from Mortgage Industry: $24,200
Total Contributions Overall: $1,051,535
No. 8: Kyrsten Sinema, D-Ariz.
Total Contributions from Mortgage Industry: $24,350
Total Contributions Overall: $3,311,077
No. 7: Jeb Hensarling, R-Texas
Total Contributions from Mortgage Industry: $26,530
Total Contributions Overall: $2,098,462
No. 6: Paul Ryan, R-Wis.
Total Contributions from Mortgage Industry: $26,725
Total Contributions Overall: $17,848,632
No. 5: Andy Barr, R-Ky.
Total Contributions from Mortgage Industry: $29,250
Total Contributions Overall: $1,876,752
No. 4: Patrick McHenry, R-N.C.
Total Contributions from Mortgage Industry: $31,000
Total Contributions Overall: $2,569,709
No. 3: John Delaney, D-Md.
Total Contributions from Mortgage Industry: $31,500
Total Contributions Overall: $1,093,583
No. 2: Dennis Ross, R-Fla.
Total Contributions from Mortgage Industry: $32,000
Total Contributions Overall: $1,004,746
No. 2: Dennis Ross, R-Fla.
Total Contributions from Mortgage Industry: $32,000
Total Contributions Overall: $1,004,746
No. 1: Blaine Luetkemeyer, R-Mo.
Total Contributions from Mortgage Industry: $37,000
Total Contributions Overall: $1,771,956
The mortgage industry gets behind politicians for a variety of reasons. Some sit in leadership positions, while others sponsor legislation the industry supports. Here's a look at the candidates for House of Representatives who have received the most money in political donations from the mortgage industry, based on data from the Center for Responsive Politics and its website
Trump could impact housing through Fed choices, Fannie Mae plan
By Andrea Riquier
Published: Nov 10, 2016 1:53 p.m. ET
http://www.marketwatch.com/story/trump-could-impact-housing-through-fed-choices-fannie-mae-plan-2016-11-10
What effect the Trump administration will have on the housing market
Something to watch under Trump could be what happens to Fannie Mae and Freddie Mac. Reform efforts have stalled the past several years. But hedge-fund billionaire John Paulson, who is part of the president-elect’s economic policy team, could push for action. Paulson bought shares of Fannie and Freddie in the hope of cashing in when they regained their independence. Since being placed under government control, the mortgage-backers have sent nearly all their profits to the U.S. Treasury, not investors.
“Paulson cares passionately about this, given his positions,” Goodman said.
Trump made a lot of promises during the campaign. It is unclear how many of them he’ll be able to keep. Until he and his advisers provide more clarity on his intentions, the housing sector, like everyone else, will have to take a wait-and-see approach.
“We are totally guessing,” Goodman said. “It could be that housing is not on his list of things to do and you don’t end up with much change over the status quo.”
https://www.washingtonpost.com/news/where-we-live/wp/2016/11/10/what-effect-the-trump-administration-will-have-on-the-housing-market/
The Wall Street Journal reported that Trump would not be seeking Federal Reserve Chairwoman Janet Yellen's resignation. But neither would he appoint her to a second term when her current term ends in February 2018. And who knows what will happen between now and then?
Trump said he would also boost infrastructure and defense spending, cut taxes, and deregulate - all of that will both stimulate the economy and be inflationary, thereby steepening the yield curve. And the president-elect has said he would call for a moratorium on new financial regulations and has often spoken of "dismantling" the Dodd-Frank financial reform law that created the CFPB.
But on the bad news side of things, the 10-year Treasury yield saw its biggest jump in three years, and yields went back to where they were in January, as investors prepared for a President Trump and a supportive Congress to sharply increase U.S. government borrowing. Wait a minute... isn't that more of a Democratic thing? Trump will not even be inaugurated until late January, much less have his plan passed by then, but his campaign proposals were radical enough that traders sold. Blame some of President-Elect Trump's proposed polices regarding tax cuts, fiscal stimulus, and infrastructure spending. In addition, the stock market staged quite a turnaround. Go figure.
Treasuries initially rallied on the massive risk-off trade with the 10-year note hitting a low of 1.72%, versus the 1.86% close, before ripping higher hitting a high yield of 2.09% just after the sloppy 10-year auction, for an intra-day range of 37 basis points - larger than even the 30 bp range in the post-Brexit trade. Our benchmark 10-year price sank over 1.75, 5-year Treasury securities sold off .625, and agency MBS prices followed but not as badly.
Looking at the big picture, remember this verbiage from the FOMC's meeting last week? "The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until normalization of the level of the federal funds rate is well under way." But what if principal payments go down? With the higher rates comes less chance of the Fed receiving money from rate & term refis and thus early payoffs to purchase more agency MBS. That's a bit of a double whammy (higher rates lead to fewer refinances, fewer refinances lead to less Fed purchases, less Fed purchases lead to higher rates), although with many areas appreciating cash-outs are picking up. And there are borrowers selling their homes and moving up. ......
http://www.mortgagenewsdaily.com/channels/pipelinepress/11102016-donald-trump-janet-yellen.aspx
Will Trump Tackle Housing Finance Reform?
By Ian McKendry, Bonnie Sinnock, Brad Finkelstein
November 9, 2016
WASHINGTON – Housing was the talk of the campaign two presidential elections ago, but it stayed under the radar in the 2016 race, leaving plenty of room to speculate about President-elect Donald Trump's likely mortgage policy for the next four years.
On the one hand, without a crisis, observers said there is little incentive for him to move quickly on the issue.
But the unresolved question of what to do with Fannie Mae and Freddie Mac – both in conservatorship since before Barack Obama's election – will loom large over the future Trump administration.
Exactly how Trump would address the issue is a complete mystery. The issue was never raised on the campaign trail.
"The disappointing part [of the election] has been that the Trump campaign has had very little to say about housing," said Patrick Sinks, the chief executive of MGIC Investment Corp. and the chairman of U.S. Mortgage Insurers, a trade group for the private mortgage insurance industry.
Trump may also be reluctant to weigh in on a subject that has tripped up policymakers in the past.
"Lots of people have put a lot of thought into [government-sponsored enterprise] reform, but it is incredibly difficult to get a super-majority consensus on it," said Dennis Kelleher, the head of the advocacy group Better Markets.
With the GOP in control of the House and the Senate closely divided, it's clear that any housing finance reform legislation would need significant bipartisan support – and it's not at all obvious how that can happen. The last bipartisan effort died two years ago after progressive Democrats said the bill would not do enough to promote affordable housing.
"Any new housing policies will have to be bipartisan and carefully negotiated," said John Dalton, head of the Financial Services Roundtable's Housing Policy Council.
Yet Trump may eventually have to address the issue as Fannie and Freddie are projected to run out of capital by 2018. The two GSEs have a line of credit with the Treasury Department, but as part of their conservatorship they are required to transfer their profits and a portion of their operating capital to the Treasury, a structure that was meant to force Congress and the next administration to reform the housing finance market.
Some speculated that Trump will at least start allowing the GSEs to rebuild capital so that the issue will not come to a head. Recapitalizing the GSEs and releasing them from conservatorship might prove too difficult a lift, given opposition from Republican and Democratic lawmakers.
"We believe that recapping and releasing the GSEs will prove difficult without legislation, but our sense is that there is a high likelihood of capital retention if Trump takes the White House," wrote Isaac Boltansky, an analyst at Compass Point Research & Trading in a note to clients.
Ed Groshans, an analyst at Height Securities, argued in a note to clients that Trump would delay dealing with the issue as long as possible.
The complete exclusion of housing as a priority means that the issue of housing finance reform would not come to the forefront unless he were reelected to a second term," he wrote. "In our view, the GSEs will continue to pay all earnings to Treasury well into the second term of the next President, assuming reelection."
Joseph Murin, who previously served as president of Ginnie Mae during the George W. Bush and Obama administrations, said Trump may leave the issue to GOP lawmakers.
"There are people on the Hill eager to retool the government-sponsored enterprises and move them forward," said Murin, now the chairman of the investment advisory firm Jjam Financial. "Folks on that side of the aisle believe in housing finance reform. They believe that a structure needs to be put in place that allows the government to participate in catastrophic coverage, not first-tier coverage."
Beyond GSEs
Outside of housing finance reform, Trump is expected to shake things up. Some predicted that he would seek new leadership of the Federal Housing Finance Agency.
"[Director] Mel Watt will be gone," said A.W. Pickel III, president of the Midwest Division at AmCap Mortgage Ltd. in Houston, a lender and servicer of government and GSE loans.
Trump is also expected to be supportive of big businesses, but it is unclear what his single-family-housing policies are or what they could portend for smaller lenders, said Brent Nyitray, director of capital markets at iServe Residential Lending in Stamford, Conn.
While Trump has been involved in home mortgage lending and has ties to the industry, more of his work has involved large commercial real estate projects.
"It could be good or it could be bad [for single-family lenders]," said Nyitray.
Trump and the Republicans have shown interest in reforming the Consumer Financial Protection Bureau, but Senate Democrats retain enough influence to make that challenging at best.
Still, CFPB Director Richard Cordray's term will expire in 2018, giving Trump an opportunity to influence the agency at that time. The agency's fate may also depend on pending litigation.
The GOP will also likely to push legislation that will lighten the regulatory burden on lenders.
"It's pretty obvious the Republicans are [for] less government in housing," said Brian Montgomery, vice chairman of The Collingwood Group and a former Federal Housing Administration commissioner.
But no one expects sweeping action because other issues are higher priority, such as health care reform.
"If you ask most lenders, the market works today," Sinks said. "A lender wants to originate a loan, insure that loan and turn around and sell that loan to the GSEs and replenish their capital and start the process over again. That works. And it keeps humming along."
As long as that remains true, the incentive to take big chances won't be there.
"The bigger issue is what the right role for government in housing is," Sinks said. "That's going to take legislative action and [lawmakers in either party] just don't seem to be in a hurry to resolve it."
http://www.nationalmortgagenews.com/news/compliance-regulation/will-trump-tackle-housing-finance-reform-1090481-1.html
RS 1:1000 is coming!