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The Truth About Freddie and Fannie/What the Government Doesn't Want you to Know.
http://www.smallcapnetwork.com/The-Truth-About-Freddie-and-Fannie/s/via/24177/article/view/p/mid/1/id/2/
Awesome article, keep posting it. Also send it to your local AP news rep.
When the conservatorships were created, FHFA made clear to Enterprise employees, Congress, and the public that retaining corporate managers and staff was essential to the work of the conservatorships. Conservatorship did not turn once-private companies into government agencies, nor their workers into government employees. As with everything else with these conservatorships, there has been a challenging yet critical balancing required.
Conservatorship: Writing the Final Chapter
The early chapters of the conservatorship story focused on market functioning and loss mitigation. More recent chapters have covered renewed efforts to enhance refinancing opportunities and REO disposition. The strategic goals and performance objectives set forth here provide an outline for the next chapter of conservatorship, one that focuses in earnest on building a secondary mortgage market infrastructure that will live beyond the Enterprises themselves. This next chapter will also see a gradual reduction in the Enterprises’ dominant position in holding mortgage credit risk as private capital is encouraged back into that role.
The final chapter, though, remains the province of lawmakers. Fannie Mae and Freddie Mac were chartered by Congress and by law, only Congress can abolish or modify those charters. The strategic plan set forth here will move the housing finance system forward and enhance the foundation on which Congress can make decisions about the role of government in the future of the country’s housing finance system. Congress then can decide on the disposition of the Enterprises and their business operations.
Extremely wordy for something that repeats itself at least 3 different times and doesn't quote a single source. It also doesn't really say anything worth value either good or bad.
I wonder if he actually got paid for this.
But thanks for the article anyways
Love the facts, unfortunately bashers never let the facts get in the way of their agenda.
http://www.fhfa.gov/webfiles/23344/StrategicPlanConservatorshipsFINAL.pdf
When you read this it sounds like they really want FnF to succeed and release could be real soon.
When you read it also looks like everything is going according to plan and release from c-chip is really what they want as soon as everything is accomplished.
According to this document it seems like they have accomplished what they set out to do and that was to bolster FnF during a crisis.
They "could" be taking all the profits and banking it so they can have a cushion as part of their plan like an emergency fund "we should all have one".
It is only fare that we the tax payers get paid back plus interest for 187 bln then release FnF. It's a win win.
Just thinkin!
The Roman empire fell because exactly what you said "Bread and Circus" feed me and entertain me to keep my mouth shut and hand open!
Hey, I missed this post. Which bozo is blaming someone else again?
Sorry to hear that, I'm down about 18k but I'm holding long all my shares except 10k and I flip those every now and then.
Did everyone read post #117316 ?
Good call, stick to the facts. No pumping or bashing! All agree?
Who posted the letter from the Congress person stating they were working on releasing FnF? Can you post again? Congress convenes on the 6th (Friday) so really Monday. Yes I know Demarco has to release them, but I'm sure it's at the behest of Congress!
What is the purpose of conservatorship?
The purpose of conservatorship is to preserve and conserve each Enterprise's assets and property and restore the Enterprises to a sound financial condition so they can continue to fulfill their statutory mission of promoting liquidity and efficiency in the nation's housing finance markets.
I think they have done their job, now it's time to release FnF.
Also press ignore on monestbehind and beatme. They contribute nothing to this board. Your'e Fired!!!
I would like to see 1.30 in the next have hour.
agreed
Typically there has been very low volume right before a run. Happens in a lot of stocks. I GLTY
ditto!
Ummm, what just happened?
Every newspaper and financial website should have this front page.
PLEASE, PLEASE no one respond to monesthind!!!!!!
It's quite obvious to me with all these banks being sued and losing, that FNMA and FMCC are no longer considered the villians. The more lawsuits the people recognize this fact. Congress realizes this as well and will not support CW or JH bills. Sure they will want better regulations from FnF but they are already in place. They were actually in place before 2008 until certain presidents made them make changes. When you think this through, congress has found the correct scape goat in prosecuting the banks. They will find a way to continue to make money on FnF and make the share holders happy at the same time or face massive lawsuits that would bring out all the dirty laundry.
Do I need to keep going? Over a million members of the NAR want to keep FNMA around, quite a few of us have probably purchased stocks. This does not even include you guys who are in the loan business or title etc...We are in the real estate business, WE know what is best. We say keep FNMA and FMCC. They worked fine for 80 years.
By NAR 2013 President Gary Thomas
REALTORS® are finally being heard, and it makes you want to jump and shout.
Today President Obama delivered the message loud and clear—Home Ownership Matters!
I’m pleased to say that our efforts to make our voices heard by the Administration have had a positive impact. The President agrees with the National Association of REALTORS® (NAR) on an overwhelming majority of the housing finance issues of the day.
In a speech at the Desert Vista High School in Phoenix, the President spoke to area REALTORS® and others about housing policy and his vision for reform of the housing finance system. In the speech, he stated his commitment to ensuring consumers retain access to the 30-year mortgage—traditionally the quickest route into the middle class—and cutting red tape so that families have access to safe, reliable mortgages.
Additionally, the President expressed support for reform of the Federal Housing Administration (FHA) and the Government Sponsored Enterprises (GSEs). He said the Administration plans to continue the phase-out of GSEs Fannie Mae and Freddie Mac, now in conservatorship. At the same time, he supports the creation of a common securitization platform to encourage investment in mortgage-backed securities. NAR agrees with the Administration’s view that any new system includes a government guarantee.
The President said he supports the historic affordability role of the FHA, which is critical to first-time homebuyers. While we support the goal of maintaining the FHA as an affordable option, NAR believes the FHA should preserve access for all qualified middle class families.
The Administration calls on Congress to approve refinance programs that provide more relief to troubled borrowers. NAR supports the government’s refinancing program, known as “HARP,” along with “bright line” standards that provide certainty to community banks selling loans on the secondary mortgage market.
While we have concerns about specific FHA reforms, protecting loan limits and keeping down payments low, we believe recent bipartisan legislation introduced in the Senate is a good place to start. President Obama made good use of the bully pulpit in stating his commitment to protecting the dream of homeownership for all Americans.
Over the past year, REALTORS® have sometimes felt like a voice in the wilderness. No longer.
By NAR 2013 President Gary Thomas
Although August is time for the annual Congressional recess, activity in our nation’s capital is not slowing down. We’re continuing to work hard on vital issues like tax reform, flood insurance and mortgage lending.
We are especially focused, right now, on the future of housing finance. NAR is urging lawmakers to move forward on comprehensive, bipartisan legislation that will restructure Fannie Mae and Freddie Mac. We believe it’s vital for the protection of the 30-year mortgage. In a speech last week, the President also expressed his support for the 30-year mortgage and stated his commitment to ensuring consumer access to safe, reliable mortgages.
While NAR supports the idea of reforms that protect taxpayers, we believe government plays a critical role in mortgage lending, especially when private lenders flee the marketplace, which leaves too many buyers unable to access mortgage credit.
We’ve long supported reform of the Federal Housing Administration, and I have testified twice before Congress on the issue. Our position is clear—it’s important to shore up the long-term solvency of FHA, but not at the expense of the consumers it was designed to serve.
In Congress three different bills on reforming the secondary mortgage market have been introduced.
The House Financial Services Committee passed a bill, called “the Path Act” that would increase down payments, putting homeownership out of reach for many of our customers. We oppose the PATH Act because it does not include an explicit federal guaranty—meaning no public backing. If it were to pass the 30-year mortgage may no longer be available to buyers.
A Senate bill, introduced by Senators Corker and Warner, does include the government guarantee, but we are concerned that when private capital chooses not to participate in the market the flow of credit could dry up. We will continue to express our concerns, and are working to help shape the bill.
The third bill, introduced by Senators Johnson and Crapo, focuses on ensuring the long-term viability of FHA. It would fulfill FHA’s mission of providing low cost loans to qualified borrowers—particularly to low- and middle-income buyers.
Last week, the President came out for a government guarantee, the Senate has acted, and now it’s time for the House to get on board. Members of Congress are in their districts this month, so we’re encouraging our members to visit their representatives. Let them know “Home Ownership Matters.” We expect a lot of activity when Congress returns. So stay tuned, and be ready to take action!
Will do!!!
The Syria issue is causing the Dow to be down 100 points and of course all financials are down. FNMA is holding very well I think considering all this is going on.
Mine as well.
Your wrong, check it out, I did and your broker CAN loan out your shares!!!!
Thanks, I checked it out myself after listening to MH of course he was wrong AGAIN. Interesting, I didn't know they could do that, how wrong is that to loan out something that is not yours without asking.
It didn't sound right but I really didn't know, I had never heard that before.
You guys were discussing setting your ask price at $100 so your brokers couldn't borrow your shares. Could you elaborate on this and do all brokerages do this?
So are your post!
I'm long but how do you know this? Says who?
"Because the appeal of preferred stock is centered on the security of its dividend payments, the long-run value of the GSEs’ preferred stock has been reduced. The value
of common stock has been reduced because of the termination of their dividends and increased uncertainty over the future long-run viability of the enterprises. Even if the GSEs were to return
to stockholder control, it is not clear how much appeal their common and preferred stock would have for investors. If the GSEs were unable to raise capital, they would be unable to continue."
When this is returned to the stock holder this would definitely not be the case!!!
Thanks for the read!
Some of us do not have a subscription, can anyone post the article?
You said."FNMA in my opinion is hiding losses through an accounting trick."
That one has been put to rest, not even the media believed that one for very long.