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Watts the official close? 4.30?
It's today if you go to the link. Kingu posted
Looking forward to hopping in soon!
Are we gonna test the 200ma on the daily or have we already hit bottom?
Not sure who the more childish person is with all these back and forth exchanges
This is the article that just dropped the PPS?
BUSINESS | 5/19/2014 @ 5:00AM |33 views
The Fannie and Freddie Reform Logjam: A Step Toward a Grand Bargain
The prospect for reform of the government-sponsored housing finance enterprises Fannie Mae and Freddie Mac has taken a giant step backward, despite the fact that the bipartisan bill proposed by Senators Tim Johnson (D-SD) and Mike Crapo (R-Idaho) and designed to shift their role to new private entities, managed to clear the Senate Banking Committee last week. The limited support among committee Democrats means the bill is unlikely to come to a full Senate vote and has, in effect, suffered death by a thousand cuts. Non-profit home-ownership advocacy groups on the Left feared that incentives for private versions of the two government-sponsored enterprises to extend credit to so-called “underserved” groups would not be as effective as the affordable housing mandates which force Fannie and Freddie to purchase mortgages made to low-income and minority buyers. Their view likely influenced recalcitrant committee Democrats. Even had it had such support, the bill faced looming House opposition from those who argued (as have I) that affordable mandates would lead to easy credit—and a repeat of the 2008 housing foreclosure and delinquency crisis, with the poor themselves most at risk. Just to make things even more complicated, the bill also suffered because of a split on the Left, as a range of other housing non-profits, including the National Low-Income Housing Coalition, supported the bill because of its encouragement of more low-income rental housing.
These developments remind us that, as in some many parts of American life, the non-profit sector has come both to depend financially on government for revenue (affordable housing rely on affordable housing mandates, as well as tax credit financing) and to see policy advocacy as much of its raison d’tre. But they also mean, as regards housing policy, that the course of least resistance is now an unhappy one: the status quo ante. Fannie and Freddie would continue, with some level of affordable housing mandates—perhaps higher rather than lower given the recently-expressed preference of Federal Housing Finance Director Mel Watt, who oversees the mortgage giants, for less-strict mortgage underwriting guidelines.
Finding a way out of this impasse will not be easy—and may, indeed, be impossible, given the fact that the status quo serves so many interests well. But it is well worth continuing the effort to privatize Fannie and Freddie—in light of the cautionary tale which their $150 billion post-crisis bailout offers (even if they’ve since used their near-monopoly to right themselves financially). There may, however, be a way to resolve the affordable housing mandate impasse, in a manner which offers something for both Left and Right: continue the mandates (albeit in new form, as goals for private mortgage insurance entities) but require something else that’s new: a level of reporting and accountability.
Here’s why. To the extent that government-mandated low-income housing goals distorted markets and contributed to the housing crisis, that problem was exacerbated by the fact that those goals are satisfied by the mere origination of mortgages to select groups. There has been neither an accounting, nor a goal, related to the actual performance of such mortgages. The same is true of mortgages originated by banks to fulfill their obligations under the Community Reinvestment Act, the 1977 law which is the philosophical forerunner of the Fannie and Freddie mandates.
Fannie Mae headquarters (Photo credit: futureatlas.com)
One way a revised GSE reform bill could break the current legislative Gordian knot could be to provide a reporting-based incentive for banks—and non-profit groups doing their own mortgage origination or counseling—to make loans that perform successfully. Advocacy groups have long argued that banks are not well-suited to judge the likelihood that low-income borrowers will make good on their mortgage payments—implying that there should be underwriting approaches in addition to credit scores on which to base lending. If this is true—let’s find out. Let’s mandate not only that the private versions of Fannie and Freddie serve the “underserved”—but that we develop report cards about such loans. Banks should develop performance scorecards for their CRA-eligible lending and non-profit groups who receive grants to counsel low-income buyers should be required to report, as well —both about whether those that they counsel actually purchase homes and whether they lapse into delinquency or foreclosure. All this would increase the likelihood that well-qualified low-income homebuyers would not see the value of their asset undermined by a delinquency or foreclosure next door. Easy credit, indeed, is the enemy of asset accumulation for those of modest means.
It’s my own hypothesis that credit scores—which barely existed when the Community Reinvestment Act was enacted—are pretty reliable indicators of how loans will perform (and, indeed, banks have developed more and more subtle versions of such scores to aid them in underwriting). But if affordable housing mandates are the key barrier to GSE reform, it’s worth seeking a middle way based on a simple approach that works pretty well in corporate America: reporting results
http://www.forbes.com/sites/howardhusock/2014/05/19/the-fannie-mae-and-freddie-mac-reform-logjam-one-step-toward-a-grand-bargain/
i did the same and agree, i wish i could have gotten at 4.1 but w.e win some lose some.
LOL
$4 is not support.
But DA GAP! Freddie has a gap at 4.08
it might test 4. a few pennies either way is meaningless in a $4 stock imo
maybe even higher ;)
highly unlikely 3.9. The support at 4 is huge
there's a gap at 4.16-4.19
i agree, i think we finish the week > 4.3
gap down in morning to fill?
see you at da GAP!
fannie always fills her gaps =)
Large bid lots just consistently
Short covering day
It passed the committee, there's a big difference between committee and senate. =)
You're not long. You initially just bought high and were stuck waiting till yesterday.
ASS-U-ME
May 15th tomorrow :)
who are the 14?
6 democratic senators already pulled their support. We also know Toomey does not agree. Max amount is 14 votes (with Toomey) they can get (not including Johnson/Crapo)
I agree. I see the chip on his shoulder, probably from many years of being the "second best" guy for the job.
Difficult to gather all thoughts quickly and efficiently when asked a spontaneous question, especially after giving an hour long speech. Uhm's come to natural to humans during something like this, id be more worried if he didn't lol
Wow he said for STAKEHOLDER input!
Hahaha
So sell :)
Fannie Mae, Freddie Mac: Progressive Groups Urge Mel Watt To ‘Halt’ Crapo-Johnson
by VW StaffMay 12, 2014, 1:10 pm
Housing and Civil Rights Advocate Urges Director Watt to Take Direct Action on Affordable Housing and Fair Lending In Advance of May 13 Brookings Speech
Fannie Mae, Freddie Mac reform heats up…. On Tuesday, May 13, Federal Housing Finance Agency (FHFA) director Mel Watt will make a speech on housing reform priorities at the Brookings Institution.
In the following statement, housing finance expert and distinguished scholar at The Opportunity Agenda, Jim Carr, says the timing “could not be better”. Carr calls on Watt to outline the steps he will take to make access to affordable home loans and housing a top priority:
“The odds of housing finance reform legislation making it to the President’s desk this year seems doubtful, so the list of priorities Mr. Watt will outline on Tuesday, May 13th, at the Brookings Institution will likely represent the most meaningful housing reform actions to occur this year.
“As Americans across the nation know, the housing crisis isn’t over. Mortgage loan originations are at a 17-year low as millions of qualified borrowers are locked out of the conventional loan market. Most negatively impacted are young adults, moderate-income families, and people of color. Moreover, although foreclosures have fallen dramatically since the depths of the crisis, million of households remain underwater with their mortgages. Yet rather than being able to access principal reduction, the FHFA continues to deny this option to struggling owners.
“Further, contributions for the National Housing Trust and Magnet Funds continue to be withheld, despite the fact that the U.S. is facing its worst affordable housing shortage in decades. Payments to the National Housing Trust and Magnet Funds are required by law and should begin given some of Fannie Mae and Freddie Mac’s impressive earnings, especially considering that both Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) have paid the government more than the amount they received in bailout funds.
“FHFA Director Watt should use his authority to institute policy changes that will help improve access to affordable rental housing and homeownership immediately. His leadership can help rebuild communities devastated by massive foreclosures and assist families by helping them access safe, affordable and sustainable conventional mortgage credit.
Fannie Mae, Freddie Mac reform: Limited access to affordable homeownership
Carr highlights several continuing barriers that limit access to affordable homeownership and rental housing, including:
•Conventional mortgage lending is now all but closed to people of color, low-and moderate-income households, and first-time homebuyers. The homeownership rate for young adults has fallen from nearly 50 % to 42 % and mortgage lending to African Americans and Latinos has dropped by over 70% since the housing market collapsed.
•Lack of access to affordable home loans undermines asset-building opportunities for American families and contributes to an ongoing drag on the U.S. economy. It also denies households of color to regain their wealth lost during the Great Recession estimated to amount to 53% and 66% for African Americans and Latinos, respectively.
•Five millions American families cannot find affordable rental housing, which destabilizes household finances, leads families into homelessness, and makes planning for future needs — especially for education and jobs — far more difficult.
“The FHFA’s authority over Fannie Mae and Freddie Mac enables Director Watt to implement comprehensive housing finance reforms immediately — reforms that will make housing access the cornerstone of economic recovery and enable the middle class to become stable once again.
“However, major legislative proposals to revamp the housing finance system — notably the Johnson-Crapo bill — would eliminate Fannie Mae and Freddie Mac and further restrict access to mortgage lending, rather than making homeownership more accessible. This is a grave misstep; Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) have served Americans well and their elimination will shift more decision-making about lending and policy to the banks that created the housing bubble.
Fannie Mae, Freddie Mac: Improve access to affordable homeownership
Carr recommends the following steps that could improve access to affordable homeownership as well as rental housing:
1. Increase access to safe, affordable, and sustainable home loans. This will help stabilize local economies by rebuilding wealth for lower-income families and first-time borrowers.
2. Enforce fair housing and equal credit opportunity law to ensure access for people and communities of color.
3. Begin contributions to the National Housing Trust and Magnet Funds, which were established in the Housing and Economic Recovery Act of 2008 with the intent to help low-income families find affordable rental housing.
4. Improve mortgage servicing standards, specifically prioritize foreclosure prevention practices including the use of principal adjustment, and prioritize the sale of distressed and foreclosed properties to promote homeownership.
5. Continue to support or expand the financing of multifamily housing in order to improve access to affordable rental units for low- and moderate-income families.
More detail on these and other reforms are found in a recent report by The Opportunity Agenda, the National Fair Housing Alliance, and The National Association of Real Estate Brokers entitled “While We Wait for Housing Finance Reform Legislation—Let’s Reform Housing Finance.”
About Jim Carr:
Jim Carr is a housing finance, banking and urban policy consultant. He is also a Distinguished Scholar with The Opportunity Agenda and Senior Fellow with the Center for American Progress. Previously, he served as Chief Business Officer for the National Community Reinvestment Coalition and as Senior Vice President for Financial Innovation, Planning and Research for the Fannie Mae Foundation.
About The Opportunity Agenda:
(www.opportunityagenda.org)
The Opportunity Agenda was founded in 2004 with the mission of building the national will to expand opportunity in America. Focused on moving hearts, minds and policy over time, the organization works with social justice groups, leaders, and movements to advance solutions that expand opportunity for everyone. Through active partnerships, The Opportunity Agenda synthesizes and translates research on barriers to opportunity and corresponding solutions; uses communications and media to understand and influence public opinion; and identifies and advocates for policies that improve people’s lives.
http://www.valuewalk.com/2014/05/fannie-mae-freddie-mac-progressive-groups-urge-mel-watt-halt-crapo-johnson/
Did you not just read the article you posted?
Sen. Johnson: We'll reconvene on GSE reform Thursday"Give my creation life?"
Trey GarrisonMay 12, 2014 4:00PM0 CommentsGSE reformHousinghousing reformJohnson-Crapomortgage ratesTim Johnson
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[X]Related Companies Ellie Mae LERETA, LLC Impac CompaniesSenate Banking Committee Chairman Tim Johnson, D-S.D., announced Monday afternoon that his committee will reconvene in executive session to consider the Johnson-Crapo GSE reform bill on Thursday morning.
The hearing will be held in Dirksen Senate Office Building on Thursday, May 15 at 10 a.m. ET.
The move could revive a bill that many observers had thought dead after last week, or at least until after the mid-term elections.
Last week, key Democrat senators shocked supporters of the bipartisan bill when they announced they would not vote for the Senate committee version of legislation that would wind down Fannie Mae and Freddie Mac in favor of a new system.
That revolt, let by U.S. Sen. Elizabeth Warren, D-Mass., followed the bill being put on hold in committee on April 29.
According to Bloomberg, Charles Schumer of New York, Sherrod Brown of Ohio, Jeff Merkley of Oregon, Robert Menendez of New Jersey, Elizabeth Warren of Massachusetts, and Jack Reed of Rhode Island held a private meeting and agreed to pull their support for Johnson-Crapo.
http://www.housingwire.com/articles/29981-sen-johnson-well-reconvene-on-johnson-crapo-thursday
Old news reported again. This was already reported by the streets dan freed
Fannie Mae and HUD Expand Their Energy Efficient Multifamily Loan Program
posted by Moe Bedard on May 12, 2014 in Mortgage Assistance, Mortgage News - LoanSafe.org. Bookmark the permalink.
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HUD, FHA and Fannie Mae yesterday announced their support to expand Green Preservation Plus. Formerly known as Green Refinance Plus, Green Preservation Plus supports the preservation of quality affordable multifamily housing through reform of energy and water projects that make properties more efficient.
Owners or buyers affordable multifamily housing properties can use Green Preservation Plus to purchase or refinance existing Fannie Mae loans in order to improve the water and energy efficiency of the property. The loans distributed through this program not only provide additional loan proceeds through lower debt service and higher loan-to-value ratios, but can seriously lower the costs of the amenities at the multifamily property. In addition, up to 5% of the loan amount can be combined to the mortgage loan in order to pay for the improvements. This programs enable property owners to gain the exact amount of funds they need to fund these types of projects.
Hilary Provinse, Vice President for Multifamily Customer Engagement told Fannie Mae that the mission of this program is to improve the quality of life for working families who are in a limited range of housing choices. “We’re pleased to see initial industry interest in our green financing options and to make the benefits available to a broader group of property owners and tenants.” said Provinse.
In order to get the needed improvements assessed, property owners can obtain a Fannie Mae Physical Needs Assessment with the High Performance Building Module. Based on the assessment that will in the end aid residents of affordable housing units, property owners can select energy and water-efficiency upgrades that make the most economic sense to get.
Green Preservation Plus loans have contributed over $150 million in Green MBS for Fannie Mae’s Multifamily Green initiative since the mortgage giants original inception of the program. The Green Preservation Plus program is actually an enhanced extension to Fannie Mae’s and HUD’s/FHA’s Risk-Sharing Agreement program.
Another report recently released by HUD also points out the 27 renewable energy partnerships that the Housing and Urban Development Department is entering into. While these partnerships would help to distribute higher amounts of energy-efficient utilities to HUD-assisted multifamily buildings, the initiative is also helping to cut our carbon pollution on this entire world that we all live on. An analysis on HUD’s findings about the partnerships found that the affordable housing providers that HUD is partnering up with have committed to installing over 150 megawatts of on-site renewable energy, which has doubled the amount of renewable energy on HUD-assisted multifamily buildings.
Some of the older details that existed for the Green Refinance Plus Program included:
- The property must be at least 10 years old. The affordability restrictions must extend for at least half the new loan term and must be recorded
- For refinances, at least 5% of the loan proceeds must be used for the property renovation or energy retrofit
- All energy projects must enhance or improve the value of the operations of the property
In addition to these property requirements, borrowers must have sufficient assets and experience to support the mortgage loan. These qualities will be determined by the Fannie Mae lender. Eligible lenders who can deliver these loans must be approved to deliver Multifamily Affordable Housing loans to Fannie Mae and must show that they can utilize DUS or Pari Passu loss sharing . All lenders who originate these loans will be responsible for loan processing and underwriting. A list of approved DUS Affordable and Special Affordable Lenders can be found at this Fannie Mae link.
There is no minimum or maximum amount for the these loans, however the maximum LTV of them is 85%. The minimum DSCR on the loan is 1.15x. The interest rates have to be fixed with no interest-only period, eliminating an option for investors who prefer adjustable rate mortgages.
http://www.loansafe.org/energy-efficient-multifamily-loan-program
Well do you think he will be able to justify a continued sweeping of profits to the treasury even with the initial loan paid back (no interest) and then some?
Your thoughts on Watt's speech this Tuesday?
Not we. You were selling at 4.5 when we hit it remember. Don't forget to sell so you can break even :)