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http://www.washingtonpost.com/news/digger/wp/2015/01/26/fannie-mae-to-move-to-15th-st-replacing-washington-post-headquarters/
At the corner of 15th and L streets downtown, The Washington Post is on its way out and Fannie Mae is on its way in.
Fannie Mae officials announced Monday that they had signed a lease to move its headquarters into a new building Carr Properties plans to build to replace the newspaper’s current headquarters.
The move is expected to allow Fannie to consolidate its headquarters employees into 700,000 square feet, down about 29 percent from the nearly 1 million square feet in a series of buildings along Wisconsin Avenue across from Sidwell Friends High School.
Fannie spokesman Maureen Davenport said the 15th Street location offered a “great value.” Fannie nearly decided on law firm space at 555 12th Street, before switching gears and choosing the Carr property.
“The lease provides attractive financial terms and gives the company the flexibility to adapt to changes to future workplace needs,” she said in a statement. “Our new location also will ensure business resiliency. After extensive negotiations, the company determined that 1150 15th Street is the best option to meet Fannie Mae’s needs. We look forward to moving into our new home in the next few years.”
Fannie officials said there was no firm timetable for the move. The Washington Post plans to vacate the existing building in early 2016, a move that must occur before demolition can begin on the Post’s headquarters and Carr can begin construction on the Fannie building. Carr has not released its plans publicly.
Fannie plans to sell its building along Wisconsin Avenue but has not begun the sales sales process.
Nine more weeks until discovery is complete. Things should start heating up.
Fannie Mae changes its mind on HQ location
http://www.bizjournals.com/washington/morning_call/2015/01/fannie-mae-changes-its-mind-on-hq-location.html
Sometimes, you just change your mind.
Just a few weeks ago, Fannie Mae seemed ready to consolidate its headquarters at 555 12th St. NW, office space that will be vacated by the law firm of Arnold & Porter.
But now, The Washington Post says two sources familiar with the deal indicate Fannie is negotiating with Carr Properties to make the move to a new building that will replace the current Post headquarters at 15th and L Streets Northwest. The Washington Post is moving to K Street NW in 2016.
Sources tell the Post that Oliver Carr came back into the mix after the last report. Carr and the owners of 555 12th St. NW declined to comment or didn't return calls for comment.
Fannie Mae, a public-private backer of mortgages, announced in August it would sell its longtime headquarters at 3900 Wisconsin Ave. NW and two other buildings and consolidate those offices and other leased space into a new headquarters downtown.
Fannie Mae says it has not yet signed a lease, but issued a statement saying it's nearing the end of its search:
"As we continue this process, we remain focused on making responsible real estate decisions that will use resources wisely, ensure the safety and soundness of Fannie Mae's operations, and give us the flexibility to adapt to changes in our future workplace needs."
I don't get Castro. Does he not consider the draws the FHA took as tax payer bailouts?
I read it as the DOJ has recouped tax payer money from the banks and lenders, and that the TSY backing of FnF is not longer needed. Lawsuits against the banks are coming to an end. So is the conservatorship of FnF.
"And that’s why I’ve called on Congress to wind down the government-backed companies known as Fannie Mae and Freddie Mac."
What is why?
Its all in context. Read it a few times and I'm sure you'll get it.
"And that’s why we had the Justice Department fight for buyers who were discriminated against or preyed upon, and we won a settlement that awarded more money to victims in one year than in the previous 23 years combined. (Applause.) That’s why we worked with states to force big banks to repay more than $50 billion to more than 1.5 million borrowers who had been treated wrongly -- and that was the largest lending settlement in history. (Applause.) And that’s why I’ve called on Congress to wind down the government-backed companies known as Fannie Mae and Freddie Mac."
So they got money back from the banks who sold toxic mortgages to FnF. Now they could exit conservatorship. They got the tax payer money back they lent FnF through settlements with the banks. Thats how Im reading this.
What I got out of the speach was that he was saying anything for applauds or laughs. It didn't matter if it was fact, or untrue.
Absolutly. I was more or less noting that industry expects him not to mention reform.
http://www.mpamag.com/mortgage-originator/obama-to-announce-cut-in-fha-premiums-20819.aspx
U.S. President Barack Obama is set to announce a 50 basis point reduction of Federal Housing Administration (FHA) mortgage insurance premiums to 0.85% in a speech to be delivered Thursday in suburban Phoenix, according to Bloomberg.
Since the crisis, FHA fees have skyrocketed. The annual insurance premium paid by most FHA borrowers has risen to 1.35%, up from 0.55% in 2010 — or more than $300 a month on a $300,000 mortgage. The higher premiums helped beef up the agency’s cash cushion when its finances took a hit after the housing bust.
While details of his address have yet to be released, industry experts suggest the president will avoid the hot button topics of GSE reform and the elimination of Fannie Mae and Freddie Mac.
The omission could signal that the administration is stepping back on its previous housing reform push.
"We believe the absence of the topic in his Phoenix speech may be seen as a sign that the administration is giving up on its goal of unwinding the (government sponsored enterprises)," according to analysts from New York-based investment bank Keefe, Bruyette, & Woods.
In early 2011, the Obama administration called for the slow death of mortgage giants Fannie Mae and Freddie Mac, and in 2013, the president urged for a replacement of the GSEs with a new government mortgage reinsurer that would be more insulated from financial reverses.
Congress is also calling for the unwinding of Fannie and Freddie. In November 2014 during a Senate Banking Committee hearing, lawmakers grilled Federal Housing Finance Agency (FHFA) Director Mel Watt and pushed for a move toward dismantling the mortgage giants to set up a new housing finance framework.
In his Arizona speech this week, the president will talk about new housing initiatives, which could include easing mortgage lending standards. "I think the president could talk about some relaxing of lending requirements," said Sheila Harris, former director of the Arizona Housing Department and board member of the Federal Reserve Bank of San Francisco told The Arizona Republic. "It should be easier, but not easy, for qualified borrowers to get mortgages."
Buying frenzy is starting.
They just took it down, so I would say yes.
Shorts in panic mode with Mayopoulos comments and Thursday's speach. No one is looking to sell with this news. I'm seeing orders go through over the current ask.
Ask is getting slapped these last few minutes.
J Carney's post on the FHFA's comment section.
https://www.fhfa.gov//SupervisionRegulation/Rules/Pages/Comment-Detail.aspx?CommentId=13138
I would like to congratulate you on a step in the right direction. The wealth and prosperity of this country has been built on having a strong middle class. In order to have a strong middle class, we have to promote home ownership for all. In addition I would like to also thank you for lowering the down payment to 3% on the my community mortgage program.
Once again this is a step in the right direction of getting our county on a strong financial footing. What crashed the system in 2008 were the subprime stated income loans, and not the 3% down payment for qualified borrowers. We have fixed the problem of stating income “liar” loans with legislation and the QM rule. Now it is time to restore FNMA and FMCC so that we can get the county back on track.
UPDATE 2-RBS shares hit by report of higher U.S. mortgage bond claims
http://www.reuters.com/article/2015/01/02/rbs-fines-idUSL6N0UH0P720150102
Fannie, Freddie net income up 20%
http://www.housingwire.com/articles/32479
Fannie Mae and Freddie Mac brought in a combined net income of $6 billion in the third quarter, rising 20% over the government-sponsored enterprises’ net income of $5 billion in the second quarter, the Federal Housing Finance Agency reported in its Quarterly Performance Report of the Housing GSEs.
The increase was primarily driven by proceeds from private-label mortgage-related securities settlements, which totaled $1.7 billion in the third quarter, the FHFA said.
According to the FHFA report, Fannie received $500 million in pre-tax income from MBS settlements in the third quarter, while Freddie received $1.2 billion in pre-tax income.
The FHFA also said that Fannie and Freddie’s earnings were aided by rising home prices, albeit by a smaller amount than in the second quarter, and a continued reduction in the number of delinquent loans guaranteed by the GSEs.
According to the FHFA report, the GSEs' delinquent loan counts declined by 5% in the third quarter, falling to 549,000 from 577,000 in the second quarter.
Since Sept. 30, 2013, the number of seriously delinquent loans at the GSEs has declined by 24%, or approximately 175,000 loans.
The FHFA also reported that rising home prices helped to reduce expected defaults and expected credit losses on loans guaranteed by the GSEs, particularly in those states with the highest severity levels including California, Florida, and Nevada.
Additionally, the quality of the GSEs’ portfolio of loans continued to improve as delinquencies fell on loans acquired prior to 2009, and the number of new loans acquired since 2009 with stronger credit characteristics continued to increase.
As a result of these factors, the GSEs loan loss reserves were lowered by $2.5 billion in the third quarter.
In total, the GSEs have now reported net income of $20.4 billion in the first three quarters of 2014. Proceeds from MBS settlements contributed $4.8 billion to Fannie Mae’s income and $6.1 billion to Freddie Mac’s income.
Also included in the FHFA report is a look at the amount of mortgage-backed securities that the GSEs issued in the first nine months of 2014.
“The Enterprises and Ginnie Mae continue to account for essentially all issuances of mortgage-backed securities,” the FHFA said in its report.
In the first nine months of 2014, the GSEs accounted for $488 billion or 69% of MBS issuance volume, down considerably from $1,027 billion or 77% in the first nine months of 2013, the FHFA said.
The decrease in the GSEs’ percent of MBS issuance volume was offset by increased Ginnie Mae MBS issuance levels, which increased to 30% for the first nine months of 2014 compared to 23% for the first nine months of 2013.
"Not much would change if we took taxpayers out of the equation and let a free market operate."
http://www.wsj.com/video/opinion-journal-life-without-fannie-and-freddie/CFE6A49C-6F35-44A5-879E-BF3DD1E23391.html
This commentary sounds a lots less dramatic then our buddy JC.
And the best part is he's not disclosing how much more.
Did any news hit? I just saw 2.23 print.
Can I get a $2.30
So the TSY had to give FHFA written consent to transfer the assets to the trust? Could there be anything else in the written consent that hasn't been released yet?
http://www.treasury.gov/press-center/press-releases/Documents/fhfa_consrv_faq_090708hp1128.pdf
Q: When will the conservatorship period end?
A: Upon the Director’s determination that the Conservator’s plan to restore the Company to
a safe and solvent condition has been completed successfully, the Director will issue an
order terminating the conservatorship. At present, there is no exact time frame that can
be given as to when this conservatorship may end.
Does Watt's statement that their return to fianacial health indicate the conservator's plan has been completed successfully?
http://finance.yahoo.com/news/regulator-directs-fannie-freddie-fill-141449125.html
"Federal Housing Finance Agency Director Mel Watt said in letters to the two firms that it was appropriate to roll back a suspension of payments into the fund given their return to financial health."
I would agree. How could Sweeney announce a verdict with a protected discovery? I couldn't imagine what that verdict would sound like. Sweeney- "Based on information I cannot disclose, I find in ruling of the defendant?"
Thanks hvpatel. Not sure why I thought March.
Discovery for FnF ends in March and closing arguments for AIG in April? I'll take it.
Did anyone else pick up on Watt's body language when Johnson was urging him to engage the TSY? Almost looked like he was agreeing with what Johnson was telling him at 4:20 in the video.
http://www.c-span.org/video/?322839-1/oversight-hearing-federal-housing-finance-agency
That was before the bid was over $2.52. I ended up chasing to $2.51.
I got a 5000 share order at $2.47 for the open. This is my last buy under $3.
Looking forward to power hour!
This gives him more ammo for the most intersting play in the market.
You already lost big this year on FNMA. No need to loose more.
Lots of orders filling over the ask. Buying preasure is huge.
$2.45 just printed with a bid ask of $2.42 x $2.43.
It's time for this conservator-ship to sail.
We are live!
Moving on up boys. $2.20 x $2.21 RT.
MM's are doing everything they can to hold it back on L2 right now. Low bid, high ask, and orders are getting filled at the ask.