Glenn is right here, J. Lamberth, late in the afternoon, in a bit of a frustrating way, backed the Government Witness by saying sarcastically, "Like 2 quarters of profitability is a turn around!". The Courtroom went kinda quite, our fellow Shareholders jaw just dropped shockingly.

The Judge (and many do it) chastised D a couple of times with snarky comments.

We know what J. Lamberth thinks, he told Shareholders to pound sand 10 years ago in this case.

Good thing the trier of the facts is with the Jurors here and not the Judge.

"Total equity hit over $16 trillion with tappable equity, which is the amount most lenders will allow you to take out while still leaving 20% equity in the home, rising to $10.5 trillion, just 4% off its 2022 peak. Per homeowner, that is roughly $200,000 in cash sitting in the house, ready for the taking.

As a result, negative equity, or so-called underwater borrowers, are nearly nonexistent in today’s market. Just 344,000 homeowners currently owe more on their homes than the properties are worth.

While that number is a 70% jump from this time last year, according to Andy Walden, Black Knight’s vice president of enterprise research strategy, “everything is relative.”

“There are less than half as many underwater homeowners than there were in 2019 before the onset of the pandemic, with only 3.9% having less than 10% equity, down from 6.6% in 2019,” Walden said.

Of course, all of this virtually destroys home affordability for today’s potential buyers: Affordability stands at a 37-year low."

https://www.cnbc.com/2023/08/04/record-high-home-prices-mean-you-may-have-cash-hidden-in-your-home.html

Monday finish Cross on Dr. Attarri, then Eddie's coming!

Sadly, No Eddie today! But D's professor Attari has bored us to death for 2 +hours unbelievably telling us that the Net Worth Swipe was a great idea! Now we Cross or perhaps map the forward court proceedings with the Judge

Who knows? The Government knows, and if the purpose of a trial is to get to the Truth, then why hide the ball?

If you dig deep, I'm pretty sure that the Federal Reserve issues quarterly or annual publicly available reports on Foreign Holders of US Government Securities.

Higher mortgage rates lower the Probability of people refinancing their home loans or as we've seen lately even buying a house.

The GSES have to wait longer to recognize income from fees they receive when a loan is originated.

Dr. Attaris on the Stand for D. You know the Gubmint BS here: (1) Periodic Commitment Fee would be 'yuge'; (2) No one could figure out in 2012 what the mysterious future holds (3) Over reliance on past 10K's.

Will the Jury buy this Garbage?

Half did last time, its a Company town.

2Q23: "In the trial, plaintiffs requested $779 million in damages from Fannie Mae and prejudgment interest on the amount of
any damages. We estimate that prejudgment interest, if awarded in the new trial, would be calculated at a rate of 5.75%
and expect plaintiffs to seek such interest from August 17, 2012. Prejudgment interest calculated from August 17, 2012
through June 30, 2023 based on the amount of damages plaintiffs requested would be approximately $485 million. The
ultimate amount of prejudgment interest awarded, if any, would be impacted by the amount of damages awarded, the
date from and through which interest is calculated, and other determinations by the court. At this time, we do not believe
the likelihood of loss is probable; therefore, we have not established an accrual in connection with these lawsuits.
However, it is reasonably possible that the plaintiffs could ultimately prevail in this matter and, if so, we may incur a loss
up to the amount of damages discussed above and any related interest."

Offset, by the fact that higher mortgage rates means prepayments from refis decrease, thus extending the time for the GSES to realize deferred amortization income on their $7T Mortgage Book of Business.

The view around DC’s federal courthouse this morning ahead of former President Donald Trump’s 4pm arraignment here today. There’s bike cops and law enforcement vehicles everywhere. Plows are parked in front of the main entrance. pic.twitter.com/R4AkamNdh0

— Katie Buehler (@bykatiebuehler) August 3, 2023

Yesterday afternoon around 4pm Judge Lamberth said no Court because Donald Trump is to be at the courthouse and it would be too chaotic. The Defendants are currently presenting their case, then Closing Arguments, then the Jury will deliberate and hopefully make a decision.

Court resumes tomorrow morning at 10am

Many many factors go into such an important decision as which candidate to vote for. If one of those multiple factors was getting us out of the 15 year CONservatorships quicker, which one would be best in your opinion and WHY?

He's got a 50lb weight in his left hand that says Government Wins!

It would be an astute financial decision by the Conservator, that's for sure, but could it be done stealthily without Mr. Market finding out?

Well, I would imagine that Standard & Poor's, Moodys, and Fitch look at the overall financial strength of the Corporations it does the Credit Rating on.

Given the ability CURRENTLY of the GSES to Ace the Credit Stress Testing coupled with $100B in retained earnings and Accumulated Loan Loss Reserves and the IMPLICIT FEDERAL GOVERNMENT GUARANTEE, they may determine that the GSES are AAA.

Professor Dharan was explaining to the Gubmint Attorneys on Cross, answering a question about the markets getting jittery about the Credit Worthiness of the GSES around the time of the Net Worth Swipe, that before the Credit Rating Agencies downgrade you, FIRST THEY PUT YOU ON A CREDIT WATCH.

Do you know if Fannie Mae or Freddie Mac are on a Credit Watch?

https://www.cnbc.com/amp/2023/08/03/billionaire-investor-bill-ackman-says-hes-shorting-30-year-treasury-bills.html

https://www.cnbc.com/2023/08/03/us-treasury-yields-investors-digest-us-rating-downgrade.html

Fannie Mae and Freddie Mac may currently have a higher credit rating from S&P and Fitch than Uncle Suggy. Mark Zandi's Moodys gives both a triple AAA, I believe.

I think Warren Buffett owns Moodys and as a good opportunist and Insurer against Natural Disasters Warren keeps over $100B in short term US T-Bills on Berkshire Hathaway's books. That may be why Moodys hasn't downgraded US Government Debt yet.

Having the Corporations buyback their outstanding equity in the market at these basement prices just makes too much sense from a prudent financial standpoint, the government would never do it !

TH on 2Q23 Fannie Mae Results: "What’s happening here is a combination of higher interest rates–particularly on liquid assets, where the secured overnight financing rate (SOFR) now exceeds 5.0 percent–and a growing amount of stockholders equity, which hit $69.0 billion last quarter. Financing a mix of mortgages, investment securities and liquid assets at rates ranging between 3 and 5 percent with $69 billion of zero-cost equity adds $2 to $3-plus billion (pre-tax) to Fannie’s bottom line annually, compared with less than $1 billion in 2021, when short term interest rates were close to zero and Fannie’s retained earnings were lower. As long as interest rates stay high, this net income will continue to boost Fannie’s profits, and grow as its shareholders equity grows.

Another welcome surprise in Fannie’s second quarter results was the continued low level of credit losses it is experiencing. Fannie’s net single-family credit losses during the first half of this year totaled only $74 million, or 0.1 basis point of its mortgage assets, and the company currently believes it can cover all future expected single-family credit losses with just $8.0 billion in loss reserves, or 22 basis points of mortgage assets (which it has on its balance sheet). Those $8.0 billion in lifetime expected loss reserves are less than the $9.5 billion in pre-tax net income Fannie’s single-family credit guaranty business earned in the first half of 2023 alone. These data show how strong Fannie’s credit position now is, and stand as further proof that the company needs nowhere near the $184 billion being required of it by the (wholly invented) Calabria capital standard to operate safely and soundly."

No, the one with the black curly hair and I think he wears glasses. He was very thorough and very knowledgeable on Cross but the Witness was well coached and come across as a clueless FHFA Bureaucrat, a lot of the FHFA Witness response was, "I don't recall" or "I don't remember", that's when he laid into him with, "Well, we'd ask your Boss (he STILL works at FHFA) but you know we can't, don't you?"

That's when the Government Attorney Objection Guy was pissed and said, "OBJECTION!" louder than usual and Lamberth said "SUSTAINED!", louder than he usually does. It was great!

If you come by on Friday, I'll show you the Case Summary (10+ frickin years!) again and all these Exhibits and Motions labeled SEALED.

I think it's horrible what the Government is doing here to its property owning Citizens! Shame on the Government for hiding the facts from the people for the purpose of pecuniary gain.

HeeeeHeeee! It will be a frickin zoo down there tomorrow. They are lining up now to get into court tomorrow! I heard a poll yesterday and they are tied in the polls.

Which one would be best for the exit from the 15 year CONservatorships?

The Donald is coming to court tomorrow, so no Court, people where lining up outside when I left around 4pm.

D called him to the stand to pretend like the FHFA was clueless about the 50B-75B DTA. He was half convincing as the P attorney tore him up pretty good.

During the Cross, when the Witness, (he was majorly coached by the D's-guess whose footing that legal bill?) pretending to play stupid said he didn't know what the person he sent the memo too (his boss at FHFA) thought. P said "Maybe we should ask him but we can't, can we?". D bursts out: OBJECTION! Judge: SUSTAINED!

This one exchange just shows, Trunk, the tip of the iceberg of HOW MUCH RELEVANT INFORMATION IS BEING EXCLUDED FROM THE JURORS, as the Government hides behind Executive Privilege and National Security Exemptions to Discovery. The case file is LOADED WITH EXHIBITS SEALED FROM PUBLIC VIEW!

It's very sad to watch as an American, especially in a case where the government has used its Privileges to hide the truth at the financial detriment of the Citizens.

He's pretending to be a clueless Gubmint Bureaucrat and it's half convincing!

No Court tomorrow, the Donald is coming, people are lining up now. .

Some FHFA' bean counter is on the Stand for D.

Lunch Break! I'm going with the Turkey Sandwich today!

Oh yeah, Ed Demarco may come by the next day or two!

Only saw the last 5 minutes but it appears the Government is now trying to sell that the "wind down" language means wind down the Mortgage Portfolios and NOT the Corporations.

Why did Uncle Suggy rob the bank? Because that's were the money is.

2Q23 Portfolio Statistics:

Average estimated guarantee fee rate (bps) 48

Weighted average current LTV (%) 54

Weighted average current credit score 756

Freddie Mac Reports Net Income of $2.9 Billion for Second Quarter 2023

Making Home Possible for 372,000 Households in Second Quarter 2023

• Financed 258,000 mortgages, with 55% of eligible loans being affordable to low- to moderate-income families, and
enabled 102,000 first-time homebuyers to purchase a home

• Financed 114,000 rental units, with 90% of eligible units being affordable to low- to moderate-income families

McLean, VA — Freddie Mac (OTCQB: FMCC) today reported net income of $2.9 billion for the second quarter of
2023, an increase of 20% year-over-year, with the increase primarily driven by a credit reserve release in Single-
Family.

Net revenues were $5.3 billion, down 1% year-over-year, as lower net interest income was partially offset by an
increase in non-interest income. Net interest income was $4.5 billion, down 5% year-over-year, primarily driven by
lower deferred fee income due to slower prepayments as a result of higher mortgage interest rates. Non-interest
income was $0.8 billion, up 27% year-over year, primarily driven by higher guarantee income and higher net
investment gains in Multifamily.

Benefit for credit losses was $0.5 billion for the second quarter of 2023, primarily driven by a credit reserve release
in Single-Family due to improvements in observed and forecasted house price appreciation, partially offset by a
credit reserve build in Multifamily due to deterioration in forecasted multifamily market conditions and current loan
performance. The provision for credit losses of $0.3 billion for the second quarter of 2022 was primarily driven by a
credit reserve build in Single-Family due to portfolio growth and deterioration in forecasted economic conditions.

Non-interest expense was $2.2 billion, up 9% year-over-year, primarily driven by a decrease in credit
enhancement recoveries due to a decline in expected credit losses on covered loans.

Dr. Dharra recognized that the value of a DTA for both Fannie Mae and Freddie Mac could be worth close to $99B combined.

Just another reason the NWS was unnecessary.

Funny you should ask, Dr. Dharra and the Government Attorney got into it today about what the Increases in Liquidation Preferences exactly mean.

Plaintiffs Objection was sustained because it qualifies for a legal conclusion.

If you like Excellent Expert Witness Testimony, do yourself a favor and read the Dr. Dharra and Dr. Thakor transcripts. The Federal Court Reporter on Friday afternoon said that the Transcript of the 1st trial should be on PACER!

Well, I think so, I haven't watched every minute but Susan McFarland and her extremely prescient spot on forecast was mentioned many times by Plaintiffs today and yesterday.

"Remarkably, it was also up slightly from the same period last year. This shift was almost entirely due to improvements in actual and expected home prices."

YES, that memo was brought into the trial!

The NWS gave away ALL the profits of the GSES INTO PERPETUITY. Is this an example of good faith and fair dealing by the FHFA Acting in its capacity as the Conservator of Fannie Mae and Freddie Mac shareholders?

The FHFA attorneys say that under HERA that the Shareholders should have been on Notice that the NWS could happen.

The Defendants just started their case. Just left the Courtroom and the lame 2011-12 CFO of Freddie Mac said he wasn't surprised by the NWS.

Who was this lame CFO of Freddie Mac in the time leading up to the Net Worth Sweep?

This is Reason #1 on yesterdays and todays slides by the Expert Witness that the NWS was unnecessary. In 1Q12, it was very clear the housing market was coming back and would have substantial benefits for the GSE'S, write up of DTA, reversing of Accumulated Loan Losses, increases in projected G Fees, etc. Just like todays results show:

"Fannie Mae continues to benefit from the unexpected resilience in home prices, netting a healthy $5 billion in profits in the second quarter."

Last Expert Witness for Plaintiffs was another great one. Excellent listener, thorough and exact answers, and total command of the facts.

In speaking with another fellow Nationalized Shareholder, Where's Demarco?

Anyone have any idea if he will come for a visit?