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It is like this right now unfortunately,
Masses+understanding=oxymoron
We must wait for the media to be told to tell the masses to buy because unfortunately
Media+understanding=oxymoron
Fannie Mae: As Trade Uncertainty Drags on Growth, Strong Consumer Demand Backstops Slowing U.S. Economy
07/18/2019 | 07:47am
WASHINGTON, July 16 -- Fannie Mae issued the following corporate news release:
* * *
- Housing Remains a Bright Spot, But Supply and Affordability Problems Persist
* * *
The Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group predicts full-year 2019 and 2020 real GDP growth to slow to 2.1 percent and 1.6 percent, respectively, despite expectations that the Federal Reserve will significantly ease monetary policy through the end of the year. An inverted yield curve, weak business investment, waning consumer and business sentiment, and ongoing trade and global growth concerns contributed to the ESR Group's updated prediction that the Fed will cut interest rates by 25 basis points in July, followed by another 25 basis points in December. Consumer spending, buoyed by a strong labor market and a recent rebound in equity valuation, remains the primary driver of domestic growth and is now expected to come in stronger in 2019 than previously forecast, helping to offset growing weakness in business investment and government expenditures.
Housing continues to benefit from the lower mortgage rate environment, according to the ESR Group. Total origination volume is expected to improve 7 percent in 2019 on the back of a surge in refinances and moderate house price growth. Refinance activity is expected to represent 32 percent of originations in 2019, up from 29 percent in 2018 and more than 2 percentage points higher than was forecast last month. While new home sales dipped in May, existing home sales rose, and both are expected to pick up through the rest of the year as inventories improve. Homebuyer sentiment has also improved, with the Home Purchase Sentiment Index(R) re-approaching its survey high.
"As the current U.S. expansion celebrates its tenth anniversary, it does so under an economic backdrop of growing domestic and global uncertainty - and slowing growth," said Fannie Mae Senior Vice President and Chief Economist Doug Duncan. "The heightened uncertainty, stemming in part from the seemingly intractable trade dispute between the U.S. and China, appears to have reduced business' investment incentive, which is now poised to be a material drag on growth over the forecast period. With consumer spending the principal remaining GDP growth driver, in addition to the recent re-inversion of the yield curve suggesting that market participants expect economic activity to slow further, we believe that the Fed will take a more accommodative posture beginning with a rate cut at the July meeting of the FOMC."
"Housing remains a net positive to the economy, as the industry anticipates growth fueled by strong household balance sheets, low mortgage rates, and a surge in refinance activity," Duncan continued. "However, the housing industry still doesn't have an answer for the related problems of low supply and affordability. While home price appreciation has largely moderated - particularly compared to the recent past - and demand for modestly priced homes has proven strong and resilient, the lack of affordable inventory continues to cap sales and limit the potential pool of would-be homeowners."
Visit the Economic & Strategic Research site at www.fanniemae.com to read the full July 2019 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.
https://www.marketscreener.com/amp/FEDERAL-NATIONAL-MORTGAGE-26499080/news/Fannie-Mae-As-Trade-Uncertainty-Drags-on-Growth-Strong-Consumer-Demand-Backstops-Slowing-U-S-Econ-28922383/
Fannie Mae Announces the Results of its Twelfth Reperforming Loan Sale Transaction
Alicia Jones
202-752-5716
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the results of its twelfth reperforming loan sale transaction. The deal, which was announced on June 13, 2019, included the sale of approximately 16,500 loans totaling $2.6 billion in unpaid principal balance (UPB), divided into four pools. The winning bidders of the four pools for the transaction were DLJ Mortgage Capital, Inc. (Credit Suisse) for Pools 1 & 2, Goldman Sachs Mortgage Company (Goldman Sachs) for Pool 3, and 510 Model I, LLC (400 Capital Management) for Pool 4. The transaction is expected to close on August 27, 2019.
The pools were marketed with Citigroup Global Markets Inc. as advisor.
The loan pools awarded in this most recent transaction include:
Group 1 Pool: 2,161 loans with an aggregate unpaid principal balance of $446,429,087; average loan size $206,584; weighted average note rate 3.31%; weighted average broker's price opinion (BPO) loan-to-value ratio of 75%.
Group 2 Pool: 5,854 loans with an aggregate unpaid principal balance of $878,017,169; average loan size $149,986; weighted average note rate 4.51%; weighted BPO loan-to-value ratio of 76%.
Group 3 Pool: 5,668 loans with an aggregate unpaid principal balance of $832,399,270; average loan size $146,859; weighted average note rate 4.38%; weighted average BPO loan-to-value ratio of 77%.
Group 4 Pool: 2,818 loans with an aggregate unpaid principal balance of $445,307,819; average loan size $158,023; weighted average note rate 4.29%; weighted average BPO loan-to-value ratio of 76%.
The cover bids, which are the second highest bids per pool, were 93.45% of UPB (63.16% of BPO) for pool 1, 97.25% of UPB (60.34% of BPO) for pool 2, 93.75% of UPB (60.09% of BPO) for pool 3 and 90.18% of UPB (57.15% of BPO) for pool 4.
Bidders interested in future sales of Fannie Mae non-performing and reperforming loans can register for ongoing announcements, training, and other information at http://www.fanniemae.com/portal/funding-the-market/npl/index.html.
http://www.fanniemae.com/portal/media/financial-news/2019/reperforming-loan-sale-results-6897.html
Fannie Mae, Freddie Mac shares down in early trade
(Reuters) - Shares of mortgage guarantors Fannie Mae and Freddie Mac fell in early trading on Thursday after the head of the regulator that oversees them said late Wednesday a hotly anticipated blueprint for overhauling them might not be published until September.
Mark Calabria, director of the Federal Housing Finance Agency (FHFA), which oversees the government-sponsored enterprises, told Reuters it was his "hope" that they would have exited or be ready to exit conservatorship before his term ends in 2024.
Common shares of the Federal Home Loan Mortgage Corp (Freddie Mac) (FMCC.PK) were down 3.9%, and shares of the Federal National Mortgage Association (Fannie Mae) (FNMA.PK) down 3.4% in early trade.
Fannie and Freddie, which guarantee over half of all U.S. mortgages, have operated under government conservatorship since their bailout during the 2008 subprime mortgage crisis. Washington has struggled for years to devise a plan to safely return them to the private sector.
Calabria's comments will temper market expectations for a speedy overhaul of Fannie and Freddie before the 2020 presidential election.
(Writing by Alden Bentley; Editing by Chizu Nomiyama)
https://mobile.reuters.com/article/amp/idUSKCN1UD23F
In either case the accumulation part is obvious. Thanks!
Go FnF!
Um...yes?
Doesn't it suck when you have to explain a joke?
Sorry, I know it takes the fun out of it but I just got a great history lesson!
Go FnF!
Have you ever known a senile person who tells the same old moldy joke every day because they do not remember that they tell the same old moldy joke every day? Or don't you remember if you know such a person?
Go FnF!
Crypto I admit that I got a little confused reading your post. Did you count a 6 month/180 day time period counting every day and then count a 6 month/180 day period just using Mon-Fri.
If so why is that?
Go FnF!
I hope a bunch of you jumped on that. I spent all of my allotment the other day
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I feel bad but look at the prefs!
Go FnF!
I thought he was a Greek poet or a god.
Go FnF!
Common shares are common sense, today.
Tomorrow's rhetoric may change that. That is why I only trade a few of my shares and always buy more.
Go FnF!
So the conversion is beginning!
Go FnF!
Will we be up today as a conversion from prefs to commons begins like crypto will be doing?
Go FnF!
Well have some more coffee. That will calm you down!
Go FnF!
It seems obvious that Calabria does not want to publish until en banc ruling is released.
If en banc is released soon he could tweak his plan if needed and publish early August.
It seems to me he is telling everybody who will listen that he is waiting on en banc and he does not know when the ruling will be released.
Go FnF!
Trump administration has said it is eager to push ahead with housing finance reform and industry analysts and insiders had expected a Treasury-led proposal for removing them from conservatorship to be published by this month. Calabria said the report was “essentially done,” that he had seen a draft, and expected it to be published in August or September.
CFPB Poised to Relax Certain LO Comp Rules
bivey@imfpubs.com
Efforts by the Mortgage Bankers Association to convince the Consumer Financial Protection Bureau to adjust standards for loan originator compensation could soon pay off. The move comes as lenders look to cut costs related to mortgage originations.
For more than a year, the MBA has been asking the CFPB to make three changes to its LO comp rule: allow reductions to compensation when a loan officer makes an error; greenlight variable compensation for loans made under housing-finance agency programs; and approve voluntary compensation reductions by LOs in response to competition.
Chris George, CEO of CMG Financial and the current chairman of the MBA, provided an update on the effort this week at the California Mortgage Bankers Association’s western secondary market conference in San Francisco.
He said that based on numerous meetings with CFPB leaders, the regulator will probably allow LO comp to be reduced when an LO makes a mistake and for housing finance agency programs. He said allowing reductions to LO comp due to competition appears less likely.
For full details, see the next edition ofInside Mortgage Finance.
Don’t Look Now but the Broker Share is Now Approaching 15%
jbancroft@imfpubs.com
The wholesale-broker channel continued to gain ground in the production of single-family loans sold into the agency mortgage-backed securities market during the second quarter.
An exclusive new Inside Mortgage Trends analysis found that 14.8% of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the second quarter were originated by mortgage brokers. That’s the highest broker share seen since all three agencies began reporting loan-level data that include, among other things, production channel.
Mortgage sellers delivered $48.32 billion of broker loans to the agencies during the second quarter, a huge 72.6% increase in volume from the first three months of the year. Total agency MBS issuance was up 45.2% over that period.
The other two channels saw healthy gains in production volume as well, 42.7% for retail and 39.7% for correspondent, that were more in line with the increase in overall agency activity. For full details and exclusive tables, see the new edition of Inside Mortgage Trends, now available online.
Ok so are you posting a video from 2017 so that we can relive the pain and frustration? That is really mean! Fortunately I have grown thick and calloused skin over the years on this odyssey.
The beginning of the end is near!
Go FnF!
Finance reform may be coming, but not soon enough for some
by Kimberly Greene | Jul 17, 2019
Although both the U.S. Treasury Department and the White House are eager to end the conservatorship of Fannie Mae and Freddie Mac that has been in place since 2008, the current administration is becoming cautious of making any bold moves before the 2020 election, lest it have any adverse impacts on the mortgage market.
Officials at the Treasury Department and in the White House see freeing the GSEs from federal control as being incredibly complicated, and that the process needs to be done slowly and deliberately, according to people familiar with the matter, Bloomberg reports.
The effort gained steam earlier this year, and Federal Housing Finance Agency Director Mark Calabria made his thoughts on the matter clear in his first annual report to Congress: the time for comprehensive finance reform is now. Since then, however, the trade war with China has taken up a lot of bandwidth for Treasury Secretary Steve Mnuchin, a situation that has a lot of people concerned about the knock-on effects for the U.S. economy, making it even more important that the housing market remains as stable as possible.
“The president earlier this year instructed the Department of Treasury to develop a comprehensive plan for bold reform,” White House spokesman Judd Deere said in an email statement. The National Economic Council, Treasury, Federal Housing Finance Agency and others “continue to work together on this presidential priority and anything to suggest otherwise is false.”
Even though this is a “presidential priority”, there is also a presidential concern that this slow-moving effort could have unpredictable effects, including making it difficult for borrowers to get loans in the time leading up to the 2020 presidential election, people close to the matter told Bloomberg. The health of the economy plays a big part in any reelection bid, and the housing market has a direct impact on the economic outlook.
One plan for post-conservatorship finance reform would require Fannie Mae and Freddie Mac to raise more than $200 billion in capital in order to ensure that they have enough of a buffer in the event of an economic downturn, which would likely result in the biggest share offerings ever recorded. As it stands, the conservatorship ensures that Fannie and Freddie benefit from excellent credit ratings as well as a government line of credit, which means that financing is always available for mortgage lending, and that helps keep rates low for buyers—hence the need for the capital buffer.
If the companies were to lose the backstop, it is unclear how mortgage bond investors and lenders might react. To make things even more uncertain, Craig Phillips, one of Mnuchin’s top aides, left the department in June. He took the lead on several domestic financial policy initiatives, including freezing Fannie and Freddie from conservatorship, and another direct point person on the matter hasn’t yet been identified. Phillips was one of the architects of a draft report for the reform process, although he left the department before the report was completed. The report has yet to be released, despite Calabria hoping it would be presented before the end of June. The new expectation is that the report will be released before the fall.
Calabria’s appointment was thought to provide some momentum for the reform initiative, after he made a series of appearances this spring where he gave quite a bit of attention to the issue. Calabria, a former economic adviser to Vice President Mike Pence, even said that he wanted Fannie and Freddie to start raising capital by Jan. 1. The president even commented at a conference hosted by the National Association of Realtors (NAR), calling the situation a “pretty urgent problem.”
Fingers are crossed for hedge funds and other investors who own shares in the two companies, as the stocks have more than doubled this year, and they could reap the financial rewards.
Even if complete reform doesn’t happen before next year’s election, the FHFA and the White House can make some strides in that direction. Reducing the impact that Fannie and Freddie have on the overall mortgage market would help to reduce the risks to those companies once released from conservatorship. Calabria could also impose a formal rule that states exactly how much capital the companies would have to hold. The Treasury and the FHFA could also put a stop to the policy requiring Fannie and Freddie to send almost all of their earnings to the Treasury, although that’s unlikely to happen this year, a source close to the matter told Bloomberg.
Fannie Mae and Freddie Mac keep the housing market humming by purchasing mortgages from lenders and packaging them into bonds that are then sold to investors, who are guaranteed interest and principal. This process keeps the mortgage market liquid and provides financing that makes homes more affordable than they would be otherwise. The companies fuel around $5 trillion worth of home loans.
This stake has made policymakers and lawmakers alike unsure how to proceed in the aftermath of the 2008 financial crisis, during which the companies were taken over my regulators and bailed out by taxpayers to the tune of $191 billion. Since then they have become profitable again, and have paid more in dividends to the Treasury Department than they received in aid.
Fannie slid as much as 11% before rebounding to $2.70, a 4.2% decline. Freddie fell as much as 10% and stood at $2.61, down 3.3%. The declines were the biggest since Mnuchin told Bloomberg in June that he didn’t want to release the companies from government control without reform. Mnuchin supports the backstop, and Calabria’s idea of potentially bypassing Congress. Still, he said that the administration wouldn’t allow the companies to build up a ton of capital and then release them into the wild, hoping for the best.
There is no quick fix. And so, we wait.
https://m.mpamag.com/news/finance-reform-may-be-coming-but-not-soon-enough-for-some-172864.aspx
You may not get it but it is 100% accurate that it is a joke!
Go FnF!
Oh Sparky, everybody else knows that it is a joke!
Go FnF!
Especially if 12-17 judges side with plaintiffs
This is what happened today
Insiders got the information/decision early.
They misunderstood the decision.
Knee jerk selling ensued.
Somebody explained the decision to them in layman's terms.
They spent the rest of the day buying back in and feeling stupid.
Go FnF!
Does Congress and treasury participate in profiteering profit sharing?
Go FnF!
Crypto, on the money prediction for the day!
So far!
Go FnF!
Friday at 6 p.m. What a HAPPY hour!
Go FnF!
And all of it will send share prices up/down/all around!
Go FnF!
I would not be surprised if the en banc decision is worded in such a way that it is misunderstood. That could result in knee jerk panic selling. Then when it is explained in English retail investors could rush in and start a buying spree. That is how Fannie rolls.
Go FnF!
What a Freudian slip. I am saving this post forever. Too funny Crypto. This makes my day!
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No. I picked up at 2.54. Almost perfect
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Ok where is the hidden camera? I am getting punked right?
Go FnF!
I picked up 5000 more at $2.54.
I couldn't help myself
Go FnF!
I believe that the post in question has been deleted
The govt. will submit a motion to review an earlier motion to review. After that the govt. can submit a motion to change it's mind. Oops they already did that.
Go FnF!
So what is the best option for a strategy if you are the defendant? How about the go to play in the play book? STALL!!!
Go FnF!
It is easier and more fun for me to visualize that this is all a game of multi level chess played by maybe 4 players at the same time. Calabria is just a piece and he has been moved. He pissed off somebody at some point in the past. Now his nose is being pushed into a steamy pile of HERA. There are lots of opinions on IHUB. Some are well thought out and logical but mine is more fun!
Go FnF!