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The market is doing great today! Up over 400 points! Fnmas is making a come back. I would post that on the pref board but there is nobody to read it!
Let's see if we finish strong or Peter out.
Go FnF! Yeah prefs too!
It is starting to feel like whipping a dead horse just telling the truth. Very few care any more. All according to plan.
I think he just meant MBS holders. Foreign govts?
Yes and Gasbag doesn't know anything either. But he sure talked a while to say nothing today.
Go FnF!
Sources Say GSE Plan to be Released Today
in Daily Dose, Featured, Government, News, Secondary Market 35 mins ago
?Two sources have confirmed to DS News that a GSE reform plan will be announced today. The sources said the announcement will be light on detail, but consistent with the Trump administration's previously discussed plans for the GSE.
Once source noted that the announcement will highlight a multi-guarantor model, protecting tax payers, and keeping in place the Preferred Stock Purchase Agreement. Additionally, sources say they are doubtful that this plan will actually end conservatorship by the end of Trump's presidency.
Plans have been in the works for months, as Reuters reported earlier this year that a The Trump administration’s plan for Fannie Mae and Freddie Mac would likely be released in September. The U.S. Treasury put plans for the GSEs on hold as it dealt with other issues.
DS News' efforts to contact the U.S. Department of the Treasury for comment have not been returned.
“Since entering conservatorship amidst the financial crisis of 2008, the GSEs have served as critical components of a stable and sustainable system of American housing finance,” said Ed Delgado, President & CEO of Five Star Global. “I look forward to the next step in Fannie Mae and Freddie Mac’s development, and hope to see strong, bipartisan cooperation toward protecting and addressing the needs of our nation’s homeowners.”
According to Federal Housing Finance Agency (FHFA) Director Mark Calabria, he hopes Fannie and Freddie will have exited, or will be ready to exit, conservatorship before his term ends in 2024. Calabria told Reuters that he is not operating toward a hard deadline.
“That’s my time horizon,” he said. “I’m under no expectation to try to get all this done. ... So if in four years, nine months they’re not out of conservatorship, I’m not pushing them out.”
https://dsnews.com/daily-dose/09-05-2019/gse-reform-on-the-way
$3.05 new HOD
Yes I remember you from way back on the 4th. Stay a while.
Back to HOD $3.03. Yes I am posting for those with no internet. FNMAS down .19
Why?
Go FnF
Is the poor fnmas performance due to rumor?
We touched $3.03 but we were rejected.
True! Why is everybody bailing out of fnmas?
We need Lebron!
$3.03 is guarded by Lamar Odem!
Trump's blueprint for Fannie Mae, Freddie Mac reform expected "within days"
Trump administration is on the verge of releasing plans for housing finance reform
September 5, 2019
Kathleen Howley
KEYWORDS DONALD TRUMP FANNIE MAE FHFA FREDDIE MAC GSES
?
The Trump administration’s blueprint for housing finance reform is set to be released “in coming days,” according to Reuters. Bloomberg was even more specific, and earlier.
“On Thursday, Treasury is expected to release its long-anticipated plan – requested by President Donald Trump – for ending Fannie and Freddie’s conservatorships,” Bloomberg said in a story that cited people familiar with the matter.
Fannie Mae and Freddie Mac, the companies that back more than half the mortgages on U.S. homes, were seized by the federal government in 2008 as the nation edged toward a financial collapse. Since then, dozens of plans have been floated, unsuccessfully, for what to do with them.
President Donald Trump signed a memorandum at the end of March directing the U.S. Treasury and the Department of Housing and Urban Development to compile reports on reform of the nation’s housing finance system and the government-sponsored enterprises, or GSEs, as Fannie Mae and Freddie Mac are known.
Trump’s memo called for reform to “promote competition in the housing finance market and create a system that encourages sustainable homeownership and protects taxpayers against bailouts.”
That plan for freeing Fannie Mae and Freddie Mac from federal control was sent to top officials at the White House and various government agencies last month to prepare for public release, Bloomberg reported.
"The report will address ways to rebuild Fannie and Freddie’s capital, as well as their path out of conservatorship," the Aug. 21 story said. "But it is unlikely to discuss potential ways to pull off initial public offerings, which is one way to raise capital that some officials have previously examined."
Fannie Mae and Freddie Mac were seized by the government after regulators decided the mortgage giants had become insolvent – a finding some investors said was based on some accounting slight-of-hand. While the GSEs didn’t back subprime mortgages, they bought subprime mortgage bonds for their investment portfolios. Those became worthless after home prices stopped gaining in 2006 and subprime foreclosures began spiking a year later.
The government takeover of Fannie and Freddie wiped out investors. A stock that was once considered as safe as investing in U.S. Treasuries because of an implied government backing went from trading at more than $60 a share to being worth pennies. Fannie and Freddie were kicked off the New York Stock Exchange in 2010 and now trade on OTC Markets. The stock closed on Wednesday at $2.92.
https://www.housingwire.com/articles/50085-trumps-blueprint-for-fannie-mae-freddie-mac-reform-expected-within-days
Damn this lack of rumors and leaks!
Go FnF!
Are you saying we will witness a true power hour? Hope so!
Go FnF!
Trump's Fannie-Freddie redo faces 'reality' limits, Beacon says
The Trump administration may not be able to turn plans to overhaul mortgage giants Fannie Mae and Freddie Mac into a "reality" before the 2020 elections, according to Beacon Policy Advisors.
And if the president fails to win re-election, the "blueprint will likely fall out of favor as quickly as Trump leaves," Beacon wrote in a note. The Treasury department is due on Thursday to release a long-anticipated plan -- requested by President Donald Trump -- for ending Fannie and Freddie's conservatorships, according to people familiar with the matter.
"Change may be coming," Beacon cautioned, but "it will likely be far more drawn out and less specific than investors may hope."
Beacon believes the overhaul blueprint won't be "exceedingly detailed, though it will likely have multiple recommendations for what can be done unilaterally" by the Federal Housing Finance Agency, or FHFA, and the Department of Housing and Urban Development, or HUD, in conjunction with the Treasury, along with what Congress may be asked to do.
Among the "asks" for Congress, Beacon sees "passing a law that would allow the chartering of rivals" that would compete with Fannie and Freddie. Even so, Beacon doubts "any substantive new housing finance legislation" can pass this Congress.
Probable administrative reforms include recommendations for new restrictions on the GSEs' purchase of some mortgages, which would shrink the "footprint of the enterprises and taxpayer risks." That might also boost "mortgage costs in an election year with a weakening economy," Beacon noted. The term "GSEs," or government sponsored entities, refers to Fannie and Freddie.
Beacon also sees capital as a "focus of the blueprint," though specifics on future sales of shares, how to treat Treasury's current shares, and the overall restructuring process probably won't be discussed in detail before negotiations between the Treasury and FHFA begin. There may be an amendment to the preferred stock purchase agreement, which "sweeps" profits to the Treasury, before year-end, it said.
Separately, Compass Point's Isaac Boltansky wrote that the mortgage finance report was likely to come after market close on Thursday. On Wednesday, Cowen wrote that the Senate Banking Committee's action to set a Sept. 10 hearing on the future of housing finance was positive for the "recap and release" of Fannie Mae and Freddie Mac.
Recap and release refers to the process of bolstering Fannie and Freddie's ability to absorb losses and then returning them to private shareholder ownership. Treasury Secretary Steven Mnuchin and FHFA director Mark Calabria are due to testify at the Sept. 10 hearing.
Fannie common shares have rallied 180% so far this year, while Freddie's have gained 168%, amid shareholder optimism change is coming. In Thursday morning trading, Fannie rose as much as 2.1% to the highest intraday since June 18; Freddie gained as much as 2.1% to the highest since June 17
https://m.greenwichtime.com/business/article/Trump-s-Fannie-Freddie-redo-faces-reality-14416337.php
.
Damn Corker is really moving the stock!
Breaking news LOL
Fannie Mae's Doug Duncan: Lack of inventory is holding housing market back big-time
Duncan shares thoughts on how to address inventory shortage
Low mortgage rates have spurred an increase in mortgage applications (although it should be noted that applications have fallen in the last two weeks) and refinances, but despite these gains, America’s home sales remain below historical averages.
So, what’s the deal? Well, a lack of housing inventory is one big factor. According to a report from Trulia, the U.S. inventory of homes for sale was flat in the first quarter, compared with a year earlier, highlighting a mismatch between buyer demand and housing supply
Although many factors are responsible for the supply downturn, Doug Duncan, Fannie Mae’s chief economist, attributes the decline to a few specific causes.
In an exclusive interview for the season finale of the Housing News podcast, Duncan sat down with HousingWire to discuss the housing market’s ever-changing landscape and its inventory decline.
According to Duncan, the housing market’s inventory dilemma can primarily be attributed to its changing demographics.
“Housing is primarily driven by demographics. So, the supply that's needed depends on the number of people and how they form households, and how those households decide to live,” Duncan said. “Today, a summary of housing supply is we're annually producing probably 300,000 less units of single-family [housing] and apartments, then we should, given our current demographic profile.”
Duncan says this is because America’s seniors are now choosing, more than ever, to age in place.
“At a very high level, the Boomers are doing what they said they were going to do, and are aging in place,” Duncan said. “Gen Xers who took the biggest damage in the downturn are also staying in place [in homes] where they own the land, and are tearing the roof off of the house, and putting on another floor. So, they're not adding to the existing supply.”
Data backs up Duncan's points. Instead of moving to retirement communities like many of their parents, data from a recent Freddie Mac study indicates that more Baby Boomers are opting to age in place. According to the GSE, the “near-gridlock” is keeping about 1.6 million houses off the national market.
This vacuum has led to an uptick in home price appreciation, as Duncan notes that homebuilders have yet to build a significant amount of affordable entry-level homes.
In August, the National Association of Realtors revealed that the nation’s lack of housing inventory was starting to weigh heavily on home prices, as the organization determined that 93 out of 178 housing markets experienced price appreciation of 5% or higher in Q2.
NAR Chief Economist Lawrence Yun said in order to prevent greater price appreciation in more affordable metros, homebuilders needed to bring more homes to the market.
“New home construction is greatly needed; however, home construction fell in the first half of the year,” Yun said. “This leads to continuing tight inventory conditions, especially at more affordable price points.”
So, if the demand for housing is strong, then why aren’t builders simply creating more homes? Well, Duncan says, it has a lot to do with the industry’s job market.
During the crisis, we went from building 2.2 million units a year to 600,000. And we stayed at that low level for about three years. So, all the labor that would have been used in building the 2.2 million net of the 600,000 had to find someplace else to go,” Duncan said. “Some of it retired, some of it went home to its to its own country, some of it went into other jobs. So, for that long time period, those people have now gone into something that's more sustainable for them longer term.”
The latest Housing Market Index, produced by the National Association of Home Builders and Wells Fargo also attributes labor concerns as a deterrence to the market’s growth.
“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots,” NAHB Chairman Greg Ugalde said
https://www.housingwire.com/articles/50081-fannie-maes-doug-duncan-lack-of-inventory-is-holding-housing-market-back-big-time
Brother that takes a lot of guts.
And helium!
Bravo!
Go FnF!
Funny yet oddly poetic
Go FnF!
Damn that sounds like usual politics in D.C. Unfortunately it sounds too realistic. Either way just hang on.
Go FnF!
I wish I had a poopoo emoji
Here is to a pleasant surprise!
Go FnF!
I am quite excited yet wary or cautiously optimistic. It is like Christmas eave before Santa comes. Will I get my new Jordans or will I get tube socks? Both of them are useful but who brags about tube socks?
Go FnF!
It is not promotion to share the information good or bad. I have been accused of being everything from short FnF to being called a racist just because I shared what is being currently being reported or spewed. We all should be aware of the positive and the negative reporting.
Go FnF!
Or from a recently purchased vineyard made possible by your friends FnF!
Go FnF!
GSE REFORM GOES LIVE
Douglas Holtz-Eakin
Eakinomics: GSE Reform Goes Live
It is widely reported that the Department of Treasury and the Department of Housing and Urban Development have submitted to the White House National Economic Council (NEC) their proposals for reforming Fannie Mae and Freddie Mac (the housing government-sponsored enterprises, or GSEs). The NEC will next issue its recommendations, which will fall to the Federal Housing Finance Administration (FHFA) to implement. Since there is a hearing on GSE reform scheduled for next week in the Senate, it is widely expected that the NEC report will be issued soon. I’m betting on today.
But what will it say?
Before we get to that, in a perfect world what would the report look like? Actually, in a perfect world there would be no such report because Congress would have legislated to burn the whole misbegotten mess down. There would be no Fannie Mae and Freddie Mac that have congressional charters exempting securities from registration with the Securities and Exchange Commission, allow unlimited holdings of their debt by banks, provide presidential appointments to their boards of directors, and allow lines of credit at the U.S. Treasury and other benefits that secure duopoly profits built on special privilege and a taxpayer backstop. Instead, there would be a 21st century re-thinking of housing finance, with clear roles for the Federal Housing Administration and whatever entities, public or private, that succeeded the GSEs, and an explicit fee to cover any catastrophic backstop provided by the taxpayers. To paraphrase Gladiator, “There was once a dream that was GSE legislation. You could only whisper it. Anything more than a whisper and it would vanish.”
So, over a decade removed from the crisis, we are down to administrative reform, which severely limits what can be done. Still, one can expect the plan to permit the GSEs to retain some of their earnings instead of having a 100 percent profit sweep by the Treasury. This change will be paired with a plan to raise additional private capital. In exchange, the plan will stipulate the lines of business in which the GSEs will be permitted and, even more important, those where it will have a reduced footprint (multifamily housing) and those where it will do no business whatsoever (portfolio investing in mortgage-backed securities). All of this will be laid out on a timeline for exiting conservatorship.
Not bad, but there will likely be some key details missing on what the enhanced prudential standards and supervision for the GSEs will look like. That is, will they finally be treated like their comparably sized private-sector counterparts? It will also likely be quiet on the boundaries of mortgage pricing and availability for riskier borrowers; these issues will get punted to the FHFA.
So, today (maybe) we get the plan. This year we get a renegotiation of the Treasury profit sweep and the issuance of an FHFA capital rule. But most likely this plan will be a mere indicator of general direction — not a fully fleshed-out vision for housing finance reform
https://www.americanactionforum.org/daily-dish/gse-reform-goes-live/
Read more: https://www.americanactionforum.org/daily-dish/gse-reform-goes-live/#ixzz5yeG3rg5j
Follow us: @AAF on Twitter
I can certainly appreciate sarcastic humor. There is no credible denial that this is great news. I detect the smell of sour grapes.
Go FnF!
I don't know but I have been in time out before! Facebook jail also.
Go FnF!
I wish I could post some emojis from my phone!
Go FnF!
Quite a lead into today's festivities.
Fantastic news that is strategically timed. I am whistling dixie already.
Go FnF!
Mnooch said"We dont no nuttin bouts no Lokey!"
Go FnF!
Only in an emergency after $14 and only enough to get through the emergency. I am sure I would have plenty left.
TMI. EOM
Nothing gets by you! LOL
Happy Thursday!
Go FnF!
You gotta know when to hold em.
If you're scared you you can fold em.
Us real gamblers will be partying at the Wynn!
Go FnF!
The market is gun shy after so many false starts!
Go FnF!