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How is it insignificant? Countrywide was destroyed in the collapse which left this gentleman without a job. Revenge is a sly guy.
Where did he say he wants the current crapo/johnson to pass? "Lol"
"Despite its imperfections, this bill represents real progress and that's why we have got to pursue it,"
It's supposed to be.
Soiled, vengeful hands wrote the bill
Paul Ryan budget will not abandon Fannie and Freddie
…for now
Brena SwansonApril 4, 2014 1:24PM0 Comments
Fannie Mae
2015House Budget CommitteePATH ActPaul RyanU.S. Budget
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Fannie Mae and Freddie Mac managed to still weasel their way into the House Budget Committee Chairman Paul Ryan’s, R-Wis., fiscal year 2015 budget plan despite his plans to slowly wind them down.
“The resolution aims to limit and reform programs in this function to reduce spending; to limit the federal government’s role in housing-finance, financial, and telecommunications markets,” the budget proposal states.
The budget ultimately recommends putting an end to corporate subsidies and taxpayer bailouts in housing finance and envisions to eventual elimination of Fannie and Freddie.
However, in order to get to that end result, the budget advises following the Protecting American Taxpayers and Homeowners Act, which phases out the government-sponsored enterprises in five years.
Additionally, the PATH act increases competition by ending the federal government’s domination of the mortgage finance system and also gives consumers more options in determining which mortgage product best suits their needs.
Included in the changes is reforming the Credit Reform Act to incorporate fair value principles. The budget noted that due to the precarious financial position of the Federal Housing Administration, the government should adopt measures to control the assumption of risk by the FHA as other government-backed entities are wound down.
“As the government reforms its role in the U.S. housing markets, which this resolution supports, Fannie, Freddie, and FHA loans should be treated with parity and full transparency. The housing-finance system of the future, however, should allow private-market secondary lenders to fairly, freely, and transparently compete, with the knowledge that they will ultimately bear appropriate risk for the loans they guarantee. Their viability will be determined by the soundness of their practices and the value of their services,” Ryan’s budget said.
One catch of the budget: it significantly pulls back the authority of the Dodd-Frank Act.
“Dodd-Frank contains layer upon layer of new bureaucracy sewn together by complex regulations, yet it fails to address key problems. Although the bill is dubbed 'Wall Street Reform,' it actually intensifies the problem of too-big-to-fail by giving large, interconnected financial institutions advantages that small firms will not enjoy,” the budget said.
Other key sections of the bill include that the Ryan budget significantly reduces federal debt relative to current law, especially in debt as percentage of gross domestic product, dropping the GDP in FY 2024 from 79% (the latest Congressional Budget Office baseline projection) to 56%, the Bipartisan Policy Center said.
http://www.housingwire.com/articles/29566-paul-ryan-budget-will-not-abandon-fannie-and-freddie
“FHFA has acted under its statutory mandate to recover losses incurred by the companies and
American taxpayers and has concluded that this resolution represents a reasonable and
prudent settlement of these cases. This settlement also represents an important step in helping
restore stability to our broader mortgage market and moving to bring back the role of private
firms in providing mortgage credit. Many potential homeowners will benefit from increasing
certainty in the marketplace and that is very much the direction we should be taking,” said
FHFA Director Melvin L. Watt.
Post the beautiful beast good sir!
The bollinger bands sure did make a violent inward move
Warm fuzzies for all!
I could see a test of 0.4 too. Had huge resistance at that level would expect huge support there as well
Are we gonna test the 50 day MA?
Do you have a link for the meeting between the groups on Wednesday? Any news article?
Tell me how that is relevant to the government wrong doing? The government continued to do wrong for all eyes to see, when the hedge funds bought in they still still abused shareholders. Frankly, the government is stupid for continuing to do it and then even ramping it up to take everything. They saw people entering for a good opportunity and to make real money and they got greedy and took it all.
The whole "this is my sandbox and everything in here is mine, go away!" attitude.
Fear mongerer is a fear mongerer.
Appreciated!
look at my question on the FNMA board that I have for you please and thank you =) and perhaps you could do an analysis on FNMA
If you can't handle the heat, step out of the kitchen. There are more safe stocks out there to invest in if your stomach is not capable, simple as that. There is no need to keep trying to persuade this gentleman from selling when/if he breaks even. Let him do what he wants and if it goes up, it is a life lesson learned. If it goes down, it was a smart decision, simple as that. Either way, don't keep moaning on about your churning stomach.
If you want to do something, simply do it and get it over with.
Agreed, I didn't even know this bill existed tbh with you.
Edit: he didn't delete it just glitched on me :p
This is from jim cramers twitter account.
“@jimcramer: Wherever Ackman wants to take it RT @johnnys_5: @jimcramer what do you think the ceiling is on FNMA?”
He actually deleted it afterwards but I took a picture of it.
I like this bill
It crashed hours before he called it. Exactly thanks for proving point :)
Was pretty obvious when the news came out
Paul Ryan budget will not abandon Fannie and Freddie
…for now
Brena Swanson
April 4, 2014
Email
http://www.housingwire.com/articles/29566-paul-ryan-budget-will-not-abandon-fannie-and-freddie
inShare
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Fannie Mae and Freddie Mac managed to still weasel their way into the House Budget Committee Chairman Paul Ryan’s, R-Wis., fiscal year 2015 budget plan despite his plans to slowly wind them down.
“The resolution aims to limit and reform programs in this function to reduce spending; to limit the federal government’s role in housing-finance, financial, and telecommunications markets,” the budget proposal states.
The budget ultimately recommends putting an end to corporate subsidies and taxpayer bailouts in housing finance and envisions to eventual elimination of Fannie and Freddie.
However, in order to get to that end result, the budget advises following the Protecting American Taxpayers and Homeowners Act, which phases out the government-sponsored enterprises in five years.
Additionally, the PATH act increases competition by ending the federal government’s domination of the mortgage finance system and also gives consumers more options in determining which mortgage product best suits their needs.
Included in the changes is reforming the Credit Reform Act to incorporate fair value principles. The budget noted that due to the precarious financial position of the Federal Housing Administration, the government should adopt measures to control the assumption of risk by the FHA as other government-backed entities are wound down.
“As the government reforms its role in the U.S. housing markets, which this resolution supports, Fannie, Freddie, and FHA loans should be treated with parity and full transparency. The housing-finance system of the future, however, should allow private-market secondary lenders to fairly, freely, and transparently compete, with the knowledge that they will ultimately bear appropriate risk for the loans they guarantee. Their viability will be determined by the soundness of their practices and the value of their services,” Ryan’s budget said.
One catch of the budget: it significantly pulls back the authority of the Dodd-Frank Act.
“Dodd-Frank contains layer upon layer of new bureaucracy sewn together by complex regulations, yet it fails to address key problems. Although the bill is dubbed 'Wall Street Reform,' it actually intensifies the problem of too-big-to-fail by giving large, interconnected financial institutions advantages that small firms will not enjoy,” the budget said.
Other key sections of the bill include that the Ryan budget significantly reduces federal debt relative to current law, especially in debt as percentage of gross domestic product, dropping the GDP in FY 2024 from 79% (the latest Congressional Budget Office baseline projection) to 56%, the Bipartisan Policy Center said.
Fannie Mae, Freddie Mac: Berkowitz Victory (Again)
by valueplaysApril 04, 2014, 6:17 pm
http://www.valuewalk.com/2014/04/fannie-mae-freddie-mac-berkowitz-victory/
Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) big Berkowitz Victory
Judge Sweeney today accepted as proposed Fairholmes discovery schedule vs Treasury/FHFA re Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) .
Discovery shall commence on Monday, April 7, 2014, and shall be completed by Thursday, July 31, 2014.
The gov’t had sought to both delay discovery and severely limit its scope, both arguments were rejected by the Judge..
We can expect ~10 depositions and 25 interrogatories to be served on various Treasury and FHFA officials starting next week as well as a massive document request. There will be a status conference every two weeks basically so the Judge can threaten and chastise the gov’t for their anticipated heel dragging and general lack of cooperation
This is gonna be sooooo good….
Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) Fairholme-Discovery-Schedule
ORDER
On March 21, 2014, the parties in the above-captioned case filed status reports containing respective proposed schedules for jurisdictional discovery. The parties subsequently filed responses to such status reports. The court has reviewed the parties’ submissions, and after due consideration, adopts the following discovery schedule:
fannie mae FNMA freddie mac FMCC
Discovery shall commence on Monday, April 7, 2014, and shall be completed by Thursday, July 31, 2014.
During the discovery period, the court will conduct a telephonic status conference every two weeks, unless both parties concur and inform the court that a status conference is not necessary. Additionally, the court will make itself available if a dispute requiring its immediate attention arises at any other time during the discovery period. Status conferences shall take place on:
Wednesday, April 23, 2014, at 1:00 p.m.
Wednesday, May 7, 2014, at 11:00 a.m.
Wednesday, May 21, 2014, at 11:00 a.m.
Wednesday, June 4, 2014, at 11:00 a.m.
Wednesday, June 18, 2014, at 11:00 a.m.
Wednesday, July 2, 2014, at 11:00 a.m.
Wednesday, July 16, 2014, at 11:00 a.m.
Wednesday, July 30, 2014, at 11:00 a.m.
Defendant shall serve on plaintiffs its RCFC 26(a)(1)(A)(i) and (ii) initial disclosures no later than Monday, April 7, 2014.
Plaintiffs shall serve on the government their initial round of document requests, if any, no later than Monday, April 7, 2014.
The parties shall serve interrogatories, if any, no later than Monday, April 7, 2014.
The responding party shall serve any objections to interrogatories within 14 calendar days of receiving such interrogatories.
With respect to all discovery requests, the responding party shall serve responses within 30 calendar days of receiving such requests.
The parties shall attempt to resolve objections, and discuss any issues regarding the format for production of responsive materials, over the 7-day period following the service of objections. If objections are not resolved by the end of that period, the objecting party shall bear the burden of moving for a protective order no later than 7 days after the close of that period.
Depositions shall be completed no later than Thursday, July 31, 2014.
Nothing in this order prevents the parties from entering into a claw-back agreement pursuant to Federal Rule of Civil Procedure 26(b)(5) and Federal Rule of Evidence 502.
In addition, by no later than Thursday, August 14, 2014, the parties shall file a joint status report (“JSR”) suggesting future proceedings in this case. If the parties cannot agree on a specific course of action, they must set forth their respective positions in the JSR, and not in separate status reports. Separate status reports shall be stricken from the docket.
IT IS SO ORDERED.
s/ Margaret M. Sweeney MARGARET M. SWEENEY Judge
Waterstone Capital Reduces Fannie Mae Short Right Before Big Drop
by Michael IdeApril 04, 2014, 2:00
http://www.valuewalk.com/2014/04/waterstone-capital-reduces-fannie-mae-short/
Waterstone cites volatility and rampant speculation, doesn’t change its position on shares’ ultimate value
Bill Ackman, Bruce Berkowitz, and other investors who are long on Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) have gotten most of the attention as GSE reform has become a bigger part of the news cycle, but after a year of rising share prices, in the face of a government promise that dividends will never be paid, those positions also looked like good targets for short sellers.
After taking a beating from shorting Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA), Waterstone Capital Management used the recent dip in price to cut its losses and reduce exposure to what is becoming a difficult-to -predict political risk. Waterstone’s Fannie Mae short lost 2.5% in February, according to its recent letter to investors.
“This loss has been made back in March, but we have reduced the size of this position in March because of the extreme volatility and rampant speculation in these securities,” the fund wrote in a recent letter to investors, a copy of which was reduced by ValueWalk. Fannie Mae preferred shares (FED NTL MTG SER Q (OTCBB:FNMAI)) have fallen from a high of $11.40 on March 7 to $8.79, compared to less than $3 a year ago; common shares are down from a recent high of $5.82 to $4.03, but still up 350% over the last 52 weeks.
The Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) short was Waterstone’s biggest loser in February by a fair margin (the next largest was New Albertsons (NEWALB), down 0.74%), and was also their worst position in January, losing 0.61% compared to State Bank’s (STBZ) drop of 0.26%. The Waterstone Market Neutral Master Fund was down 8.03% in February after gaining 8.57% in January, putting it slightly negative for the year.
Waterstone has previously backed away from ‘ridiculous’ Fannie Mae
This isn’t the first time the fund has decided to step back from its short position, Waterstone has been shorting Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) for the better part of a year, and at one point it was the fund’s largest position. Last summer Waterstone also reduced its short position to focus on short term bets to better exploit the stock’s volatility, calling the trading “ridiculous, irrational, and extremely speculative.”
With the executive and legislative branches basically guaranteeing that the shares had no value, it looked like a good bet at the time, which is why they weren’t the only investors to get caught by rising prices. Short interest started dwindling in January, and anyone looking to take a position now has to resign themselves to a long, drawn out court battle. Waterstone hasn’t wavered from its belief that Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) shares are actual zeroes, but it’s less interested in sticking around to find out.
Waterstone’s top performers
Waterstone’s best performing stocks in February were Talmer Bancorp Inc (NASDAQ:TLMR) which gained 1.43%, Chesapeake Energy Corporation (NYSE:CHK)/Devon Energy Corp (NYSE:DVN) which was up 0.73%, Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) which was up 0.48%, and Dendreon Corporation (NASDAQ:DNDN) which was up 0.19%. Talmer was one of the fund’s biggest detractors in January, losing 0.26%.
It's funny you ask for links then provide none yourself. Fear mongerer is fear mongerer :) glta see you next week
High
Frequency
Trading
This needs to test the 50 IMO
He's talking about Citigroup no fannie
Sorry obit. This is what I was talking about: http://www.pacermonitor.com/permalink/172227128242816
I think attention should be brought to finding if this happens. This IMO is huge for shareholders.
Hmm, where is the one where it has not judge Sweeney but the other judge royce? I think his name is. It was a proposal for the sweep to end. Someone took a picture of it.
Perhaps I am just blind and cannot find it
Obit, do you know where that document that lists the plaintiffs discovery schedule and what they wanted to be done. ie freeze the sweep going to the treasury for now, and something else... It was from value plays website but I cannot find it
ahahahahaha
Lok'tar ogar brave warrior!
The extra 5 billion comes from the repurchasing of faulty MBS loans. The 9.3 goes to FHFA (fannie/freddie).
Fannie Mae and Freddie Mac must not die
Richard X. Bove, equity research analyst at Rafferty Capital Markets
7 Hours Ago
CNBC.com
73
COMMENTSJoin the Discussion
The current plan to wind down Fannie Mae and Freddie Mac would result in lower housing prices for everyone. It would harm the United States economy by lowering growth. It would increase unemployment.
Despite this probability, the president and Congress seem to be intent on killing these companies — and the media and public do not seem to care. The prevalent belief is that these are failed companies with failed structures that exacerbated the American housing crisis that flared up in 2008 and therefore they must be expunged from the system.
Jin Lee | Bloomberg | Getty Images
In fact, the opposite is true. For eight decades, the system that they represent was successful in allowing tens of millions of Americans to own their own homes. The system was abused by politicians, regulators, and bankers beginning in the mid-1990s and this led to the downfall of these two giant companies. It was not structure but political and financial interference with proper underwriting that created their difficulties. The reaction to these misdeeds is to eliminate these companies without considering what this will do to housing and beyond housing, the economy.
(Read more: Bank stocks to double, says Bove)
Consider the current proposals, in Washington D.C.:
One set of ideas would result in the elimination of the 20- and 30-year self-amortizing mortgage.
Another concept would result in increasing the federal debt ceiling by more than $5.3 trillion and maintaining pressure to keep raising it going forward.
Another option would wipe away $350 billion of tax payer equity.
Other ideas would result in the complete nationalization of the housing finance industry.
What is certain is that under every one of the proposals, the concept of every American owing his or her own home is now gone. The result will be to create neighborhoods of rental units — or in my view, instant slums. Given the risks implied by the current proposals, one would think that Americans would want to know more about what is happening to home finance or, more specifically, the price of their homes. To date they are not interested — and neither is the media.
It is probable that the housing industry in the United States is the nation's most subsidized sector. The problem, of course is how do we get from the most heavily subsidized system of home finance in the western world to a system that is not subsidized at all? Clearly if the transition is not handled properly, major dislocations will emerge and these dislocations will be very painful to all Americans.
If the current plan from the U.S. Treasury clears Congress and the courts, two things will happen: Fannie Mae and Freddie Mac will stop functioning on January 1, 2018; they will then enter a liquidation phase that may take at least 10 years.
This will not be good for anyone in this country. If there is no Fannie Mae and Freddie Mac, no bank will be willing to make 20- or 30-year self-amortizing mortgages. I have spoken to at least a dozen banks who feel very strongly about this issue — they just don't view mortgage lending as the profit center it once was in the past. It's more of a loss-leader to attract customers and cross-sell them other products.
(Read more: Dick Bove bullish on banks after stress tests)
Banks will simply be unwilling to put 30-year self-amortizing mortgages on their balance sheets, particularly at today's interest rates. They will be willing to make 10- and 15-year adjustable-rate loans. The math here is frightening. The median income of American households is approximately $51,000. Under the new qualified mortgage rules, if you want to buy a home:
You must make a down payment equal to 20 percent of the value of the home to be purchased.
You are not allowed to pay more than 40 percent of your household income to meet principal and interest payments.
So, if the homeowner obtains a 30-year mortgage at a 4.25-percent fixed rate, then he/she/they can afford a home worth approximately $435,000. Conversely, if all they could get was a 10-year adjustable-rate mortgage at 6.25 percent (the average over the past 20 years), they could only afford a house worth $345,000 — a drop of $90,000.
You can play with the numbers any way you want but the bottom line is always the same: Affordability drops. Housing prices must come down. Moreover, if the American banks adopt the mortgage systems widely used in Canada, the 3-5-year balloon mortgage will be back.
(Read more: Why America needs big banks: Dick Bove)
Of course, no one believes that this will ever happen. However, they need to think again. The program to eliminate Fannie Mae and Freddie Mac is already in place. Unless Congress acts or the courts throw out the U.S. Treasury's plan, the price of every home in the United States is about to fall. After the fact, people will care and the media will awaken from its somnolent state.
What should be done
To me it is very clear that the following should be done to minimize the impact of the government's withdrawal from the home finance industry.
The conservatorship controlling Fannie Mae and Freddie Mac should be eliminated.
The companies should be returned to private sector ownership.
The government should exercise its warrants and sell the stock in the open market.
The dividend on the Series A preferreds should be returned to 10 percent.
The two companies should have as their mission:
1) The elimination of their owned portfolios
2) The expansion of their insurance roles without the full faith and credit of the nation behind this insurance
3) The requirement that they give preference to insuring long duration fixed rate mortgages
The Senior Preferred Stock should be placed in a new trust dedicated to funding low-income housing.
None of this requires congressional or court actions. The president is able to do it by fiat. There is no massive government takeover of the housing finance industry and more importantly no massive bureaucracy created. It is simple, low cost, and would avoid disrupting the American public by forcing the prices of their homes lower.
— By Richard X. Bove
Richard X. Bove is an equity research analyst at Rafferty Capital Markets and the author of "Guardians of Prosperity: Why America Needs Big Banks" (2013).
http://www.cnbc.com/id/101522658
Where does it suggest that Fannie always had an implicit gov't guarantee? Ginnie mae, yes, Fannie mae, you'll have to point out to me in your message where it states the implicit guarantee.
In Theory of Interest- Stephen G Kellison the paragraph concerning fannie mae reads as follows:
The Federal National Mortgage Association (FNMA) issues MBS called "Fannies Maes". FNMA is chartered by the U.S Government and the corporation (but not the government) guarantees payment of principal and interest.
The Government National Mortgage Association (GNMA) issues MBS called "Ginnie Maes". GNMA is owned by the US Government and payment of principal and interest is guaranteed by the full faith and credit of the US Government.