is...waitin for the government to get rite for the people
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Nothin but B.S comin out in the news for us now.
Short Takes: A Fannie-Freddie IPO? Not So Fast / $20 a Share? / When in Doubt, Pick the White Guy Category / If Cordray Was Running the CFPB… / New Hires for Waterstone, LoanLogics
By Paul Muolo
pmuolo@imfpubs.com
We understand that Raymond James has issued a report estimating that any initial public offering by Fannie Mae and Freddie Mac could take three to four years. The report was mentioned in a news roundup put out by Credit Suisse. Bloomberg was cited as the source. We haven’t viewed the RJ report and no further details were available at press time…
The share price of Fannie/Freddie common is now trading on the OTC for north of $3 each. A few months back, we had a conversation with one speculator/investor who believed that if a Treasury-backed recap and release occurred, the common would spike to at least $20. For an update on GSE R&R, see the new edition of Inside Mortgage Finance…
The Consumer Financial Protection Bureau’s consent order against Freedom Mortgage serves as an interesting study in how companies improvise when faced with a HMDA data-reporting quandary. To make a long story short, someone at Freedom ordered loan officers there to pick the category of “non-Hispanic white” when faced with a loan application with incomplete borrower information, in this case the ethnicity of the customer. Why pick the white guy category? Answer: Because if no box was checked the lender’s software would create a “hard stop” preventing the loan file from advancing. In some cases, the borrower did not want to provide ethnicity…
One obvious question: Who at Freedom told the LOs to pick the NHW category? The practice ultimately cost the privately held lender $1.75 million in damages, not a ton of money, but money nonetheless. If Democratic appointee Richard Cordray was still in charge at the CFPB would the fine be larger
sittin in his basement with upgraded lighting and popcorn ceiling.
quite the Money Maker there
something to think about.
Most of us have been here for a very long time and have had our chains pulled more than once. The noise that has been made on this stock is been more extreme than averge. we have been in court battles for years now, longere than the average. with the economy doing as well a it is WITHOUT the housing market in the middle of it all is just typical of stock and how one can be hot for a day and then just fall off the podium. The thing that gets me is the system and the corruption that can allow the interest of justice be put on the burner in lew of higher interest.
April 1 there was a 1:25 split. was anyone here for this event?
not yet
position exited today. stock has been downgraded.
Perfect example of how warrants work. Still room for the price to go up.
romper room day. This is fun. Nothing but back n forth green
He is quite the big head. Fortunately he may be right about the happenings.
Went to the bathroom at Ricks house and guess what I heard his mom yell to me through the basement pipes. She said "well into 2020 and absolutely nobody wants to mess with housing going into an election year!!." SHe scared the shnizzle outta me.
I dont believe anything will happen till interest rates are reset. with all the fees they are talking about that is a keypoint in the priceing control in housing and loans combined. nobody wants to f up this market. It will all be from one bad move. haha jackass congress.
trust me I agree. I want it to be all over too, but I make my money along the way man. its all ggod
Not a guru economist but it just makes sense
Beginning to think they want the recap to start at the point of recession now.
Investing is blue collar gambling. Im taking my chances that we will gap down. Ive been wrong before but it is what it is.
Maybe failing us was the wrong word. I meant it as we as in every9ne is waiting for the court, but the court appears to be waiting for the government. That is why Im changing my investing tact
no announcements anywhere near saying they will retain capital in less than the next 3 months. I feel like this wll go lower amongst all the uncertainty with trade and interest rates. The watch party will dwindle the price with no action or news. Using target dates for trading this now. EN BANC is failing us. Obviously inside. I sold 2/3rds off today. Will be on hold for a chili dip and opportunity to add more
Did we just fall for another famous NB
Sent a request to halftime report to touch on the GSEs and the goins ons.
Lets goins FnFins!!
5th circuit website still down as it was all weekend. I cant get anything
Mortgage CostsBy
Austin Weinstein
June 3, 2019, 1:00 AM PDT
Regulator’s plan to boost capital could raise housing expenses
Higher mortgage costs might hurt Trump in 2020 campaign
Fannie Mae and Freddie Mac’s watchdog has a vision for ending U.S. control of the mortgage giants that hinges on the companies holding more capital. But that dream could run into a cold political reality of making home loans more expensive as President Donald Trump ramps up his re-election bid.
Federal Housing Finance Agency Director Mark Calabria, who became Fannie and Freddie’s regulator in April, has said the companies need to raise capital buffers to protect against the kinds of catastrophic losses they had during the 2008 financial crisis. He doesn’t want to release Fannie and Freddie unless they have sufficient backstops to prevent another taxpayer bailout.
Read More: Fannie Mae and Freddie Mac Died But Were Reborn, Profitably
“It was insufficient capital that triggered the conservatorship, and it’s going to be sufficient capital that triggers an exit,” Calabria, a Trump appointee, said last month at a mortgage banking conference in New York. He added that he wants Fannie and Freddie ready to start raising funds by January.
To get there, Calabria has suggested the companies boost their capital levels to as much as 5% of assets, which would be a whopping $274 billion. For a cushion that high, mortgage finance experts say Fannie and Freddie would probably have to increase the fees they charge lenders to insure against borrower defaults. Those expenses would be passed along to home-buyers.
Economic Impact
A downside: mortgage costs could go up. Trump is heading into his re-election campaign with his approval stuck at less than 45% in almost every poll, and his chances for winning a second term may depend on the health of the economy next year. Any housing woes would add another potential impediment, along with his trade war with China and possible new tariffs on Mexico.
“It’s unnecessary and doesn’t make any sense,” said Mark Zandi, chief economist of Moody’s Analytics, who believes that fees Fannie and Freddie charge are already at appropriate levels. “Higher mortgage rates will raise payments and reduce demand. Less demand will mean lower house-price growth.”
Figuring out a fix for Fannie and Freddie, something Trump has called a “pretty urgent” problem, is the main unresolved issue from the 2008 meltdown.
The Treasury Department is near completion of a plan to return Fannie and Freddie to private ownership that could be released within weeks, said people familiar with the matter. The White House is reviewing a draft of the proposal, one of the people said. Treasury Secretary Steven Mnuchin would have to sign-off on the plan before it’s formally sent to the White House, and officials expect months to pass before any of it starts to be implemented.
An FHFA spokeswoman said the agency is still reviewing what would be sufficient capital levels for Fannie and Freddie. A Treasury spokesman didn’t respond to a request for comment.
Taxpayer Rescue
Fannie and Freddie don’t lend themselves. They buy mortgages made by lenders and wrap them into securities that are sold to investors with guarantees against default. The two companies were seized by regulators more than a decade ago and sustained by $191.5 billion in taxpayer money. They have since returned to profitability and sent more to the Treasury in dividends than they received in bailout funds.
Here’s why capital impacts the fees that Fannie and Freddie charge lenders to backstop loans: The companies are expected by regulators and investors to earn money on their capital stockpiles. So if Fannie and Freddie have a combined $200 billion of capital and must make a 10% rate of return, then they would have to raise fees to a level that allows them to earn about $20 billion.
While under U.S. control, Fannie and Freddie are each restricted to a capital buffer of $3 billion, far less than they’d need to get through an economic downturn. Instead of retaining profits to build up capital, the companies send almost all of their earnings to the Treasury, a practice Calabria says he wants to bring to an end.
Fannie and Freddie’s old capital requirements were suspended when they were seized by the government in 2008. New rules were proposed last year by then-FHFA director Mel Watt that would have had the two companies hold anywhere from $103.5 billion to $139.5 billion combined. Calabria is expected to issue a final plan later this year.
Like Insurers
Hedge fund manager Bill Ackman, whose firm is one of the largest holders of the companies’ common stock, called the proposed higher capital levels unlikely and unnecessary on a recent earnings call.
“These are not banks,” said Ackman, who runs Pershing Square Capital Management. “They’re really insurance companies, and they’re insuring what we believe to be one of the safest assets in the world, which is the first mortgage on, kind of, middle-class homes to a credit-worthy borrower on a geographically diversified basis.”
Ackman said Fannie and Freddie will have all the capital they need at 2.5% of assets because of their “huge” cash flows.
Trump and Treasury officials have publicly said they want to work with lawmakers on an overhaul of housing-finance policy, though some within the administration are skeptical they can reach a compromise with House Democrats, said one of the people, who like others asked not to be named in discussing internal deliberations. That might prompt the administration to bypass Congress in releasing Fannie and Freddie.
Coming IPOs?
The capital levels floated by Calabria could complicate such efforts. He told Fox Business Network last month that a $250 billion capital raise is “in the ballpark” of what he thinks is appropriate. While Calabria and administration officials have said they’re evaluating an initial public offering, a stock sale of even a fraction of that value would easily be the largest in history.
Regardless, Calabria has leverage because the White House and Treasury need his backing to execute any plan to end the conservatorships, said Brandon Barford, founder of Beacon Policy Advisors.
“If they want to release them on a schedule that the administration would want, they’re going to have to agree to what the director wants on capital,” Barford said.
We will need news Monday for sure or the shorts will take hold on us.
hopefully not from the litter box
Stalker board catchin fire lol
VERY VERY NICE CLOSING PRICE TODAY!
BOOM LETS GO FnF!!!
June 3rd is here in 25 minutes. lets see what Monday brings..
We have no reason to be red from today out. The plan is here and the excitement is building. No one wants to be out now knowing the admins has its mits deep into this turkey
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POLITICS
Administration Nears Plan to Return Fannie Mae, Freddie Mac to Private OwnershipEffort would put the companies on sounder financial footing, then release them from government control
Mark Calabria, director of the Federal Housing Finance Agency, is part of an effort to return Fannie Mae and Freddie Mac to private ownership. PHOTO: T.J. KIRKPATRICK FOR THE WALL STREET JOURNAL
By
Andrew Ackerman
Updated May 30, 2019 6:13 p.m. ET
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TEXT
WASHINGTON—Trump administration officials are putting the finishing touches on a plan to return mortgage-finance giants Fannie Mae andFreddie Mac to private-shareholder ownership, people familiar with the matter said.
The proposal, coming more than a decade after the government seized the firms to save them from collapse, would seek to put the companies on sounder financial footing and then release them from government control, if Congress doesn’t enact a more fundamental overhaul, these people said.
The plan is being developed by the Treasury Department in consultation with a regulator of the companies, the Federal Housing Finance Agency. It could change as it advances through the Trump administration, works its way through the White House and ultimately is submitted to the president for his approval as early as June, the people said.
The proposal is expected to include a version of what has been called “recap and release,” which would ensure the firms have adequate capital to absorb loan losses in a future housing slump and thus avoid needing another taxpayer-backed bailout.
If carried out, the companies could return to a status similar to how they operated prior to the financial crisis. Still, administration officials would prefer Congress to act on a more sweeping remake of housing finance.
Former officials of the companies and housing experts say the moves could be daunting. Shoring up Fannie and Freddie’s finances could entail raising more than $125 billion for the firms, the companies’ regulator has estimated—in part by selling new shares in an initial public offering. In comparison, the largest initial public stock offering ever was $25 billion for Alibaba Group Holding in 2014.
Fannie and Freddie are central players in the mortgage market, buying mortgages from lendersand packaging them for issuance as securities.
The companies got into trouble before the crisis by taking on more risk without having to hold more capital. They amassed huge investment portfolios to profit from the difference between their lower cost of capital—a benefit of an implied federal guarantee because Congress created the firms—and the rates they could earn on mortgages.
The government seized the companies through a process known as conservatorship in 2008, during the George W. Bush administration, and agreed to inject vast sums to support some $5 trillion in debt securities issued by the companies.
As part of the draft plan to return Fannie and Freddie to private hands, an existing Treasury backstop for the companies could remain in place. But the firms could begin paying a periodic “commitment” fee for the federal guarantee, the people said.
The Treasury’s in-house process for drafting the plan is near completion, with sign-off expected soon from Treasury Secretary Steven Mnuchin, the people said. That approval is likely to come before Craig Phillips, a counselor to Mr. Mnuchin and the Treasury’s point man on the project, leaves the government sometime next month.
Still, the document is unlikely to be released to the public until after a review by other parts of the administration, led by National Economic Council Director Larry Kudlow and involving Mark Calabria, the head of the FHFA. The timing of that review is unclear.
Mr. Calabria, a former aide to Vice President Mike Pence, has long said he wants to put the firms on the road toward returning to private hands. Earlier this month, he said an IPO could come as soon as next year.
People familiar with the Treasury document cautioned it would likely include substantial changes to the business models of the companies, including steps to reduce over time their footprints in housing finance.
Those steps, which could include limits on the types of loans Fannie and Freddie may purchase, could reduce their capital needs. But such constraints could turn off potential investors in their shares.
A Treasury spokesman didn’t immediately comment on Thursday.
For more than a decade, lawmakers have tried to overhaul Fannie and Freddie. The Trump administration has said it wants to work with lawmakers to return the companies to private hands, but the power split in Congress limits the chance of a legislative solution, despite significant interest among lawmakers of both parties.
That impasse in turn provides an opportunity for the Trump administration to take steps on its own.
Any move to recapitalize and then release the firms would be a victory for hedge funds and other investors that have been betting on Fannie and Freddie’s privatization for years. Still, it remained unclear how existing shareholders, including mutual-fund giant Capital Group Cos. and hedge funds such as Paulson & Co., would be treated in any capital-raising by the companies. One possible outcome is that the existing shareholders would see their stakes diluted in any new offering.
Big part of our real problem that is all tied to the GSE's
Here’s something I don’t say often: on this point, I AGREE with @AOC Indeed, I have long called for a LIFETIME BAN on former Members of Congress becoming lobbyists. The Swamp would hate it, but perhaps a chance for some bipartisan cooperation? https://t.co/jPW0xkH2Yy
— Ted Cruz (@tedcruz) May 30, 2019
Administration Nears Plan to Return Fannie Mae, Freddie Mac to Private OwnershipBY ANDREW ACKERMAN | DOW JONES & COMPANY, INC. - 13 MINUTES AGO
WASHINGTON -- Trump administration officials are putting the finishing touches on a plan to return mortgage-finance giants Fannie Mae (FNMA) and Freddie Mac (FMCC) to private-shareholder ownership, people familiar with the matter said.
The proposal, coming more than a decade after the government seized the firms to save them from collapse, would seek to put the companies on sounder financial footing and then release them from government control, if Congress doesn't enact a more fundamental overhaul, these people said.
The plan is being developed by the Treasury Departmentin consultation with a regulator of the companies, theFederal Housing Finance Agency. It could change as it advances through the Trump administration, works its way through the White House and ultimately is submitted to the president for his approval as early as June, the people said.
The proposal is expected to include a version of what has been called "recap and release," which would ensure the firms have adequate capital to absorb loan losses in a future housing slump and thus avoid needing another taxpayer- backed bailout.
If carried out, the companies could return to a status similar to how they operated prior to the financial crisis. Administration officials would like Congress to act on a more sweeping remake of housing finance.
Former officials of the companies and housing experts say the moves could be daunting. Shoring up Fannie and Freddie's finances could entail raising more than $125 billion for the firms, the companies' regulator has estimated -- in part by selling new shares in an initial public offering. In comparison, the largest initial public stock offering ever was $25 billion for Alibaba Group Holding in 2014.
Fannie and Freddie are central players in the mortgage market, buying mortgages from lenders and packaging them for issuance as securities.
The companies got into trouble before the crisis by taking on more risk without having to hold more capital. They amassed huge investment portfolios to profit from the difference between their lower cost of capital -- a benefit of an implied federal guarantee because Congresscreated the firms -- and the rates they could earn on mortgages.
The government seized the companies through a process known as conservatorship in 2008, during the George W. Bush administration, and agreed to inject vast sums to support some $5 trillion in debt securities issued by the companies.
As part of the draft plan to return the companies to private hands, an existing Treasury backstop for the companies could remain in place. But the firms could begin paying a periodic "commitment" fee for the federal guarantee, the people said.
S.O.S nothing we dont already kno. This ifiot acts like he doesnt kno what hes talking about when referrring to the NWS. Maybe he should spend more time in his basement studying
RITE!!!
raiseing capital means uplisting and conservatorship will be gone. when is the question. it all makes sense to happen on June 3rd clearly. if not I say we own a tanker that wil sink and the recession will begin. interest rates will fire it up. lets just hope its all on target and ready to go without hiccups. other than that....watching rite now is nothing but PAINFUL
BRIEF-Freddie Mac Says Lower Rates Should, Give A Boost To Housing MarketREUTERS - 5 MINUTES AGO
May 30 (Reuters) - Federal Home Loan Mortgage Corp :
* FREDDIE MAC SAYS LOWER RATES SHOULD, GIVE A BOOST TO HOUSING MARKET
* FREDDIE MAC (FMCC) - WHILE ECONOMIC DATA POINTS TO CONTINUED STRENGTH, FINANCIAL SENTIMENT IS WEAKENING
* FREDDIE MAC (FMCC) - 30-YEAR FIXED-RATE MORTGAGE AVERAGED 3.99% WITH AVERAGE 0.5 POINT FOR WEEK ENDING MAY 30, DOWN FROM LAST WEEK WHEN IT AVERAGED 4.06% Source text for Eikon: Further company coverage
Guessing he'll be on halftime now speaking about this. If so we'll pop just cause someone says FnF
BOOM
GO FnF!!
Calamaris cat could manipulate this stock. We dont need a gasbag doin it too
3 cents above support is not a rip. Gasbag is nobody. His news is all gas
How is that even possible??
misspoke..ovebought