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Will the defendants response be sealed as well?
Further proves the sealed response from Fairholme directly referenced protected information.
Multiple sources using the same quotation provider.
Before any MM's are lined up, it is .01 x $7.
Anybody that watches L2 knows that's the opening bid x ask every day.
LOL right under the chart on CNN Money is an article about Bloomberg misreporting on the Fairholme sale.
A simple google search will give you the link.
http://www.valuewalk.com/2014/11/julian-castro-broad-support-away-fannie/
The Bloomberg article was nothing more than an attempt to get Berkowitz to disclose his holdings. Now ask yourself, why would Bloomberg want to get Berkowitz to disclose? Why is this infomation important to them?
Anything from Watt's Senate Banking Committee speach yet?
It's not lying if they're not required to file their holding of OTC stocks. That's been made pretty clear.
How would they know they need to correct it if it's an assumption? No one will know until they are required to file their holdings in their biannual shareholder report.
"These efforts are also consistent with the actions we are continuing to take to strengthen the financial position of Fannie Mae and Freddie Mac while they are in conservatorship, such as addressing guarantee fees, requiring the Enterprises to transfer significant credit risk to the private market, reducing their portfolio investments, and improving their servicing standards and loss mitigation options."
This statement tells me that Watt does not want to perpetuate conservatorship, but rather ensure that when they are released they will continue to remain profitable.
From 2012 but still relevant.
Nice to hear him mention Fannie and that the key to a strong economy is a housing recovery.
How does the CSP make money? Is it a profitable entity? I remember hearing that others will use it besides FnF. If so, will they see profits from the outside use?
EPS was actually higher that prior quarter. The media was quick to point out it was 55% lower than last year's same quarter.
Soft bashing at it's finest.
Same headlines previous quarters.
I'm sure you have friends Rick. What about everyone in Manhattan, Dusseldorf, and Shanghai?
The conservator does not need to worry about them, but the CEO's on the other hand do.
Has either GSE had an earnings call since c-ship?
@ 4:44, There's nothing wrong with delivering profits to shareholders.
A lot of week hands getting shook out this morning.
Around 500,000 traded in the last 5 minutes.
Please explain why all gaps have to fill. IMO it's more psychological than anything.
Watt basically solidified FnF's future yesterday.
Here comes the reversal of the reversal.
Looks like the tone has changed on CSS and the market is reacting postivily.
http://seekingalpha.com/article/2579075-the-reason-fannie-and-freddie-shares-are-rising-today?source=google_news
Federal Housing Finance Agency (FHFA) Director Mel Watt gave a speech to the room of bankers that included some anticipated policy changes. Of importance to shareholders, however, was the inclusion of wording regarding the Common Securitization Platform (CSP), which has been under construction for several years. Mr. Watt confirmed what many shareholders believed when he said,
“
"Now, let me turn my attention to the continuing progress we are making in the multiyear process of developing the Common Securitization Platform , which will create a shared securitization infrastructure for Fannie Mae and Freddie Mac. As I announced in May, we are focusing on ensuring that the CSP fills the needs of Fannie Mae and Freddie Mac to carry out most of their current securitization functions. To achieve these objectives, FHFA and the Enterprises have revised the governance structure and operating agreement for Common Securitization Solutions (CSS). CSS is a joint venture owned by both Fannie Mae and Freddie Mac and is the corporate entity that we expect ultimately to house and operate the Common Securitization Platform."
Shares of both Fannie and Freddie began to rally after this statement, due to the fact that markets are now beginning to price in the value of the CSP. If the old Fannie Mae and Freddie Mac were able to produce $23 billion per year in annualized earnings, a bigger and more expansive CSP should be able to beat that, right?
Congratulations to Mel Watt on throwing shareholders some meat in his speech.
Cutting through that ask like a hot knife on butter. We may see 2.50 today.
Starting to see that bullish confirmation.
Estimates were at 1%. Good news for FnF.
Old but still relevant.
Please explain why CSS does not point towards release.
The chart is showing a bullish hammer in an upward channel. We may see a breakout tomorrow.
They got the Fed to admit to a doomsday book in the AIG case. I'm pretty sure they know what they're looking for.
It all depends on what discovery brings. Sweeney will need to rule on the case, and she needs to take into account discovery documents weather they're protected or not. If the protected documents can increase share price and also cause financial damage, I don't see how the parties won't settle.
http://www.housingwire.com/articles/31783-fannie-mae-will-buy-97-ltv-mortgages
Not much more from Mayopoulous other than reiterating that FNMA is not going to be wound down.
Fannie Mae CEO Timothy Mayopoulos said the government-sponsored enterprise will soon begin offering a 97% loan-to-value mortgage.
Speaking at the Mortgage Bankers Association Annual Convention & Expo, Mayopoulous said the government-sponsored enterprise is working “closely” with the Federal Housing Finance Agency to offer this product to all Fannie associates.
He said increased underwriting quality and improving representations and warranties will allow Fannie to buy these loans.
"We now we can safely and responsibility do these loans…we reduced the layering of risk," Mayopoulos said.
Fannie Mae does not lend mortgages, but rather securitizes the loans into the secondary mortgage markets.
“Under our new rep and warrant framework we are reviewing more loans closer to delivery," Mayopoulos said.
Mayopoulos said his firm repurchased only 8,200 out of 2.7 million recent loans.
And when Fannie gives lenders time to correct any outstanding issues, a buyback is unnecessary in most circumstances.
"At Fannie Mae we are focused on serving you," he told the crowd of mortgage bankers, "and looking forward to serving you in the future."
The announcement builds upon FHFA Director Mel Watt's speech from earlier in the day on Monday, when said that the FHFA was clarifying the Representations and Warranty Framework to help reduce repurchases.
"We know that the Representation and Warranty Framework did not provide enough clarity to enable lenders to understand when Fannie Mae or Freddie Mac would exercise their remedy to require repurchase of a loan, Watt said. "And, we know that this issue has contributed to lenders imposing credit overlays that drive up the cost of lending and also restrict lending to borrowers with less than perfect credit scores or with less conventional financial situations."
Watt also touched on the prospect of the 97% LTV ratio in his speech.
"To increase access for creditworthy but lower-wealth borrowers, FHFA is also working with the Enterprises to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97%," Watt said.
"Through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages by taking into account 'compensating factors.' While this is a much more narrow effort than our work on the Representation and Warranty Framework, it is yet another much needed piece the broader access to credit puzzle. Further, details about these new guidelines will be available in the coming weeks as we continue to advance FHFA’s mission of ensuring safety, soundness and liquidity in the housing finance markets.”
Fannie and Freddie Shareholders Strike Back
http://blogs.wsj.com/moneybeat/2014/10/20/fannie-and-freddie-shareholders-strike-back/?mod=yahoo_hs
A Fannie Mae FNMA +5.09% and Freddie Mac FMCC +1.45% shareholder suing the government filed a brief in federal court in Iowa Monday arguing a federal judge in Washington, D.C. reached the wrong decision when he dismissed a similar case last month.
The filing marks the first time lawyers for plaintiffs in various Fannie and Freddie lawsuits have responded in detail to Judge Royce C. Lamberth’s decision. The Iowa case was brought by Continental Western Insurance Co, which is represented by the same law firm—Cooper & Kirk, PLLC—that represented Fairholme Funds in its case before Judge Lamberth.
The latest filing argues Judge Lamberth erred by allowing the Federal Housing Finance Agency more discretion in its role as a conservator than the law allows. The filing also says the court misread the requirement that Fannie and Freddie pay dividends to the U.S. Treasury. And it asks the Iowa court to give the Lamberth decision “no weight.”
Given that Fannie and Freddie’s shares plummeted in the wake of that decision, investors think it certainly has heft.
Per FHFA shares will continue to trade.
???Q:
?What happens to the Company’s stock during the conservatorship?
???A:
?During the conservatorship, the Company’s stock will continue to trade. However, by statute, the powers of the stockholders are suspended until the conservatorship is terminated. Stockholders will continue to retain all rights in the stock’s financial worth; as such worth is determined by the market.
http://www.fhfa.gov/Media/PublicAffairs/Pages/Fact-Sheet-Questions-and-Answers-on-Conservatorship.aspx
So FnF will be released when the price is $2.50? Keep them coming. You're posts are good for a laugh.