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.
If Obama makes just one positive hint towards FNF the pps could shoot up tomorrow.
It is possible that Obama wants to brag about the housing recovery with the help from FNF. It could help him justify reversing his opinion on FNF and clear the path for resolving the law suits.
I do not believe that the government, Paulson, Geithner and Bernanke want to get involved in these law suits. Somehow the law suits are going to get settled.
Good thing these law suits are in place!
It will be very interesting to see how much dividend FNF will pay to the government and to see what attention that will get in the media.
"Government is robbing"
I agree; governemnt does not own FNF.
Proposal is meaningless.
New House Democrat proposal would sell off Fannie, Freddie
January 16, 2014, 5:37 PM
.
Share:Tweet
More
.
.
EmailPrint
A trio of House Democrats on Thursday introduced their own housing-reform proposal that, in time, could spell the way for the government to sell off mortgage giants Fannie Mae FNMA and Freddie Mac FMCC.
The proposal from Rep. John Delaney of Maryland, John Carney of Alabama and Jim Himes of Connecticut would call for private capital to backstop the first 5% of mortgage securitizations, with Ginnie Mae — in partnership with more private money — backing the rest.
“The Delaney-Carney-Himes housing finance proposal creates a structure that enables the government to significantly expand the availability of capital in the insurance market, while ensuring the mortgage market is open and efficient – with private capital participating in the market and pricing all of the risk,” they said.
The Congressmen envision Fannie and Freddie remaining as aggregators of mortgage loans for small credit unions and community banks and being turned into private monoline insurers over five years.
The proposal as a whole stands little chance of being adopted, but it adds to the mix of housing-reform proposals, such as those from House Financial Services Chairman Jeb Hensarling and the bipartisan proposal of Sens. Mark Warner and Bob Corker. Fairholme Funds meanwhile wants to recapitalize the mortgage buyers with outside cash.
– Steve Goldstein
Happy New year, everyone.
Can't wait to go to Las Vegas.
I agree. Geithner had a lot do with FNF c-ship and the third amendment. I read Hank Paulson's book and am reading Neil Barofsky's book now. All roads are leading to Geithner and he was always favoring the big banks.
He will not want to go to court; I think a settlement out of court is going to happen.
Stay long and strong.
It is no secret,that conservatorship was forced; it is written in Hank Paulson's book.
People involved were Paulson, Bernanke, Geithner and Lockhart, while Bush approved the plan.
It was done to improve the liquidity and credit rating, so that FNF could raise more money and aid the housing recovery.
The people involved do not want to go court, I assume. I believe something will be settled out of court.
This should be good. The government will have to offer something good or else the suits will not be dropped.
IMO.
The FNMA summary on TD Ameritrade shows 20.9% institutional holding.
Last month it showed only 11% .
Institutions are accumulating. Hang in there.
I agree. If Obama had not spoken in August, we could have been well over 5 by now. But this is the stock market; anything can happen.
Be on the train; the FNF express could leave home without you.
I agree. If Obama had not spoken in August, we could have been well over 5 by now. But this is the stock market; anything can happen.
Could be that preferred shares are being sold to get common shares.
That's not realistic; that includes the tax deferred assets.
More realistic is like the last quarter, appr. 8 billion.
Per year that would be 32 billion, which equates to $ 27.50 per share.
With a PE ratio of 9 this has a valuation of appr. $250 per share.
Fully diluted, if the government exercises all warrants, then the value will be appr. $50 per share.
Plenty of upside potential.
I agree. Cannot be sold until mission is completed. Certainly, now that mission is almost complete.
Release from C-ship first.
Below is copied from Bloomberg; earnings report by 11/7/2013.
Last time the earnings were reported a day earlier than Bloomberg stated.
Key Statistics for FNMA
Current P/E Ratio (ttm)
-
Estimated P/E(12/2013)
0.5502
Relative P/E vs. SPX
-
Earnings Per Share (USD) (ttm)
-0.2680
Est. EPS (USD) (12/2013)
4.3800
Est. PEG Ratio
-
Market Cap (M USD)
13,885.41
Shares Outstanding (M)
5,761.58
30 Day Average Volume
25,962,980
Price/Book (mrq)
-
Price/Sale (ttm)
0.1119
Dividend Indicated Gross Yield
-%
Cash Dividend (USD)
-
Dividend Ex-Date
09/07/2008
5 Year Dividend Growth
-
Next Earnings Announcement
11/07/2013
Earnings report is due on 11/7/2013.
I think so too. Once net zero is established it would look very bad to exercise the warrants. It would look like robbery. The government is entitled to a fair profit, but cannot take all.
Common shares will be worth a lot of money!
Market watch shows 2.37. Big gap coming. FNF express has taken off.
I do not understand why anybody wants to sell at this time.
FNF express has taken off.
Thanks, I agree.
Something is brewing. Berkowitz is quiet, Lew is quiet and even Obama is quiet, now that may help.
I cannot see that the government wants to go to court over the lawsuits. Losing the lawsuits would be a major embarrassment. They may be negotiating something behind the scenes.
Maybe amendment 4, maybe release from conservatorship with some contingencies. Release with contingencies could make the government look like a hero; they can claim saving FNF and maybe the lawsuits will be dropped.
This stock has the potential to make a large jump overnight, upon the right news.
So, be on the FnF train. The FnF express could leave home without you.
IMO
I wondered about that a lot.
It had to be planned.
I am long, holding 134K @ .725 avg.
This stock has the potential to make a large jump overnight, upon the right news.
So, be on the FnF train or the FnF express could leave home without you.
IMHO.
I am long, 134K @ .725 avg.
I have enjoyed reading the messages on this board and got good info from it, really appreciate it. Here is my contribution to this board.
The scare of winding down FNF is past now IMO. It was not to be taken lightly; the politicians and government were certainly making an effort to do some serious changes to FnF. President Obama used the term “flawed business” model. This term was already used in 2008 by Bernanke and Geithner and it was already used in 2003 after the 2002 recession. In 2002/2003 under the Bush administration the government tried to reform FnF, but was unsuccessful. In 2008, when FnF were in trouble, Hank Paulson wanted advice from Bernanke and Geithner on FnF and their first reaction was to put them in receivership and get rid of this “flawed business” model. Someone else got involved, I think it was James Lockhart, who said that receivership was not possible, because FnF were not bankrupt; FnF were paying their bills. The problem was liquidity and credit rating, which made it very difficult for FnF to raise money. A lot of the money came from China and Russia. Without FnF being able to raise money it would make the housing recovery very difficult. Thus the government stepped in, restored the liquidity problem and FnF were able to raise the funds needed for housing recovery. FnF played an important role in the economic recovery, but they could not have done this without the government backstop.
Now, after several years FNF made a fantastic turnaround and became very profitable. In 2012 the government changed the conservatorship agreement to take all the profits in the form of dividends, leaving nothing for other shareholders and nothing for capital re-building. I believe this move was made to accelerate the re-payment of the investment in FnF, but also to help the U.S. budget, one of those extra-ordinary measures Jacob Lew is currently talking about.
Earlier this year talks revived to re-form FnF, because if it was not handled quickly then it may not happen, due to the profitability of FnF. So, Corker/Warner bill and others got drafted quickly. New FHFA director, Mell Watt, was nominated. President Obama made a speech and talked about the “flawed business” model and winding down FnF; put a real scare into the investors. President’s speech 2 days before the earnings report was not co-incidental IMO. The government was trying to pull off a fast one to make drastic changes to FnF. The stock price got set back accordingly.
In the meantime lawsuits were filed by large institutions, claiming the profit sweep in 2012 was illegal, depriving other preferred shareholders of their fair share and depriving any capital re-building for FnF. The government cannot proceed with drastic changes to FnF without addressing the lawsuits first; it would draw major protesting from institutions and politicians too and would look very bad to the government putting themselves above the law. It is a good thing those lawsuits are in place.
IMO this scare for major re-form is now past. The government actions show that. The re-form bills are put off, new FHFA director is no longer urgent, the government request for stay of the lawsuits has not been granted. Hank Paulson mentions in his book that FnF cannot remain in conservatorship; he does insinuate changes needed to avoid repeat of the crisis. FHFA and FnF are proceeding with their own re-form, demanding more private capital in the secondary housing market and reducing the exposure of FnF. So, I believe FnF is back on track. It appears that DeMarco can finish the job he started with FnF; when FnF meets his scorecard he will release them from conservatorship. When?
I have held a pretty good position in FnF since April. I did not sell any shares since that time, despite of this re-form scare. Common sense tells me that it does not make sense to make drastic changes to profitable companies; certainly not a wind-down.
This stock has the potential to make a large jump overnight, upon the right news.
So, be on the FnF train or the FnF express could leave home without you.
IMHO.