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http://www.fanniemae.com/syndicated/documents/mbs/mbspros/MF_DMBS_September_1_2013.pdf
Fannie is now guaranteeing their own securities
Multifamily DMBS Prospectus
Guaranteed Discount Mortgage-Backed Certificates (Multifamily Residential Mortgage Loans)
The Certificates
We, the Federal National Mortgage Association, or Fannie Mae, will issue the guaranteed discount mortgage-backed certificates, or DMBS certificates. Each issuance of DMBS certificates will have its own identification number and will represent beneficial ownership interests in a dis- tinct pool consisting of a participation interest in a mortgage loan secured by one or more multi- family properties that contain at least five residential units. The participation interest is held in a trust created under a trust agreement.
Fannie Mae Guaranty
We guarantee to each trust that we will supplement amounts received by the trust as required to permit payment of the full original stated principal amount of the DMBS certificates on the maturity date. We alone are responsible for making payments under our guaranty. The DMBS certificates and payments of principal on the DMBS certificates are not guaranteed by the United States and do not constitute a debt or obligation of the United States or any of its agencies or instrumentalities other than Fannie Mae.
Consider carefully the risk factors section beginning on page 9. Unless you understand and are able to tolerate these risks, you should not invest in the DMBS certificates.
The DMBS certificates are exempt from registration under the Securities Act of 1933, as amended, and are “exempted securities” under the Securities Exchange Act of 1934, as amended. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved these certificates or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this Prospectus is September 1, 2013
9:32.29 25,000 shares @ $5.21
WOW!!!
Need to break $1.64
Yea say that at 9:32.29 25,000 shares @ $5.21
WOW!!!
If someone can get a screen shoot I can,t
Yea say that at 9;32.29 25,000 shares @ $5.21
WOW!!!
If someone can get a screen shoot I can,t
now we need to break 1.64
Bingo!! now above 100 moving average a lot of alerts will now trigger
watch the volume now
Would be nice to close above the 100 day moving average 1.56
try 1.305
Patswill
YES the OS is 1.2B
the OS is 1.2 Bill the Government holds warrants for 79.9% of the OS of commons. If exercised the float would be 5.6B
there is a big difference Please read the fillings.
At this point the government doesn't own any common shares. They have warrants that have not been exercised that total 79.9% of the present OS of the commons.
Big Difference
Some good big buys coming in now
Are you on the ask or bid
Here is the link for the interview on CNBC
http://video.cnbc.com/gallery/?play=1&video=3000196230
Stockanalyze
Could be a good argument
How Can Fannie Mae and Freddie Mac Leave Conservatorship?
There are two ways that Fannie Mae and Freddie Mac could exit their conservatorships. If they become financially viable, they could return to stockholder control. If they are unable to become financially viable, they could enter receivership. There is no legal reason that one GSE could not go into receivership and the other GSE return to stockholder control, although this might present some policy questions about the desirability of having a monopoly GSE. There are several obstacles to a return to financial viability. In conservatorship, the GSEs are balancing their goals of support for home mortgage markets and their goal of profitability. At times, these goals may conflict. The concern of the federal government and FHFA for mortgage market stability and liquidity may take precedence over the return to profitability.48 Paying the federal government all profits earned in a quarter might prevent the GSEs from accumulating funds to redeem the senior preferred stock. however, if this payment applies only at the end of a quarter, it would appear that the GSEs could redeem some senior preferred stock using funds available before the end of each quarter. This would be a way the GSEs could return to stockholder control, although it would likely take many years. FHFA could prevent (or authorize) this redemption of senior preferred stock
Here is all the payment dates located on page 11 of 27
http://www.fas.org/sgp/crs/misc/R42760.pdf
Support is growing
ICBA Policy Resolutions for 2013
ICBA Priorities for 2013
GSE SECONDARY MARKET REFORM Position
http://www.icba.org/advocacy/index.cfm?ItemNumber=57559&sn.ItemNumber=1709
Ha!! Ha!!
I am a Realtor from Canada and our housing market suffered in 2008, but not to the extent that the US Market did.
The Canadain mortgage industry also has a government backing it is called (CMHC). It is very successful and it is for mortgages that the borrower have less then a 25% deposit.
The major difference between CMHC and Fannie Mae is in lending restrictions.
I believe it is only a matter of time for the US government to realize that they need to stay in the Mortgage market to some extent. Fannie and Freddie need to stay and they only need to be reformed.
The Canadian market would not survive nor had survived 2008 without a government backing.
Fannie Mae will survive!!
What is with ADTF on the bid four times
A better version of yesterday's story about the accounting changes
http://blogs.wsj.com/developments/2013/08/19/watchdog-fannie-freddie-should-expedite-accounting-changes/
By Nick Timiraos
Associated Press
Fannie MaeFNMA -3.68% and Freddie MacFMCC -3.94% should speed up the implementation of an impending accounting policy change that will require them to book losses sooner on loans that are at risk of foreclosure, according to a report from a federal watchdog.
The previously announced policy change will require Fannie and Freddie to charge off estimated losses on loans that haven’t made any payments for 180 days. Currently, the firms take those charges when the loans complete foreclosure.
The report, released Monday by the inspector general for the Federal Housing Finance Agency, said that the accounting change, which was announced in 2012 and is currently set for implementation in 2015, should be enacted sooner. “Three years appears to be an inordinately long period to fully implement” the changes, said Steve Linick, the inspector general, in a memorandum to the FHFA.
Because Fannie and Freddie are already reserving for losses as loans fall into delinquency, the policy change wouldn’t necessarily change the profit or loss experienced by the companies. Instead, the policy change would alter the timing by which Fannie and Freddie account for losses on loans for which they’ve already reserved for losses.
The inspector general’s report said that the changes “may have a material impact on the level of loss reserves maintained” by Fannie and Freddie but provided no specifics.
"Our accounting and disclosures are appropriate and we have appropriate levels of loss reserves, including reserves against loans delinquent for more than 180 days,” said Andrew Wilson, a Fannie Mae spokesman. The new accounting rules “would not materially change our results.”
An FHFA official said Monday that the agency had deferred the implementation of the new accounting standard because the companies needed to upgrade their systems. “We need to do this in a safe and sound manner,” said Jon Greenlee, the agency’s deputy director of enterprise regulation.
“When you come up with a new policy or there’s a policy change, it takes time for these large, complex organizations to change their systems to be able to comply,” he said in an interview. “This is not unusual from our standpoint.”
The FHFA announced last year the new accounting policy, which is already used for federally-regulated banks, in part to improve transparency and to give greater incentives for the companies to offer loan modifications that would be implemented before a loan becomes 180 days past due.
Fannie and Freddie have reported hefty profits in recent quarters as rising home prices and fewer loan delinquencies have allowed them to reverse some of the massive loan-loss reserves they built as the downturn deepened. Fannie reported a $10.1 billion second-quarter profit earlier this month, and Freddie reported a $5 billion profit.
Around 2.08% of all mortgages backed by Fannie and 2.06% of loans backed by Freddie were at least 180 days or more past due at the end of June, or roughly $57.5 billion and $40.1 billion in loans, respectively. Mortgage companies that process delinquent mortgages on behalf of Fannie and Freddie have struggled to complete foreclosures in certain states, particularly those where court approval is required.
A Freddie Mac spokesman said the company was in the process of implementing the guidance.
Always a good listen in the rules of law with Richard Epstein and Fannie Mae.
http://ec.libsyn.com/p/8/f/4/8f477c08d726724b/FEATURE_MUSIC_LIBERTARIAN_CHRONICLES-2053_RICHARD_EPSTEIN.mp3?d13a76d516d9dec20c3d276ce028ed5089ab1ce3dae902ea1d01cf813ed6cd59b671&c_id=5885878
A great post on the FMCC board by
Woondedeagle
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91174918
Recently returned from a nearly month long tour of the northern Med from Barcelona around the boot to Venice and back again. Met a lot of fine folks, and a few jerks, and polled many on their health care systems, paying for and quality of upper education, how their mortgage systems worked - and how well.
From what I saw and heard I think if we want to remain the dynamic and most envied of real estate machines on this planet or any other we need easy and cheap financing. We need to 'turn over' in a timely manner, or our economy will resemble Europe's, with fourteen trillion tourists clogging the streets, sidewalks, restaurants, and all the rest.. Property must run it's life-cycle as do we all; cars, boats, and buildings too are created, do their thing for awhile, and die. Europe, not so much -- Imagine driving or walking to the grocery store and the streets are overflowing with peeps from anywhere and everywhere, all the time. It's sad, but gotta chase they gotta chase the buck too, right?
I believe with every fiber of my being that this whole economic eruption was planned for, as the price that would have to be paid should we not realize the billions in permanent revenues from the iraqi oil fields, when war drums were beating on our air waves and in print, beginning in earnest in August, 2003.
When it became clear our adventure in the middle east was going to cost more than three trillion us escudos and nothing - NOTHING would be realized in return, it was necessary to execute Plan B - a good old fashioned stock market crash, and the normal accouterments, such as housing collapse, and that old favorite - unemployment. And finally, of course, budget cuts, deflation, and then the doldrums for a decade or so until commodities double and double again, raising prices of virtually everything and we're off to the races again. Like Monopoly, it's just a game..
Short, fat Fannie Mae, and her studmuffin brother, Freddie Mac are unique in the world, a sort of extra part in the machine that no country has except America.
Why is that, I wondered. Is that a good thing? I sought out people who could think and talk on this subject. At a table in an ancient stone cottage in outer county, Dubrovnik, we were seated with couples from Norway, Scotland, Australia, England, and 'locals' from Narlens and Joisy, including me, your humble orator and my blushing bride, from the 'turn over' capital of the world, Las Vegas, where every structure is a potential tear-down. After several hours of fine food and wine with talkative thoughtful 'foreigners' a consensus developed, regarding American real estate, which was we should not try to fix that which is not broken, especially when it would give complete control to venomous vipers and snakes whose interests are the opposite of living, working human beings who have families and the right to a decent god-damned life, for Christ's sake!
So what if there is an implied, IMPLIED government back up? The Banks kept the faucets on full blast for too long - it's that simple. And the Vipers and Snakes thought they would end up with Fannie and Freddie's ten trillion dollar revenue stream, did they not? Thanks to George! Bimbo college cheerleader, they did. His dad was a fighter pilot at the same age the son was shaking pom-poms in front of thousands of people wearing a big "P" on the front of his preppie white sweater and white pants and white shoes. Our president! Ha!
The remaining big banks have become gargantuan banks, and have not been sent to the woodshed in any meaningful way, and won't, now that five years have gone by and the Obama administration has not only managed to stop the bleeding, but launch a now believable if not robust, recovery from the chaos they inherited. Fannie and Freddie played a key - THE KEY role in turning back the tide of losses.
The Banks will extract the language out that charges Fannie and Freddie with maintaining an accessible, affordable and fair system for transacting real estate transactions. The Banks will not have fairness and ethics to worry about anymore when Fannie and Freddie are gone because they won't be there to provide the competition that prevents those fun-loving Banks from screwing consumers to death. You can bet your keester the benefits derived from our current system, which allows us to own our home outright in twenty-five or thirty years. When people had to save up 50% of the total price things moved a lot slower. Now Wall Street sees that real estate is the ultimate money machine, and they have a plan to get their grubby paws on it - all of it.
If Fannie Mae and my personal favorite, Fast Freddie go away we will live in Potterville within a few years, because all the incentive to buy, maintain, and improve homes in America will have been taken away by Bank executives, whose spawn will be able to attend the best schools while your kids will not. The rich get richer faster and the middle class disappears and the poor - well you can imagine. With Fannie and Freddie providing formidable competion, approaching 50% in normal times, the smelly, unpleasant, arrogant and greedy, stinking filthy banks will be repelled like garlic repels vampires.
I think if we want to remain the dynamic and most envied of real estate machines on this planet or any other we need easy and cheap financing. The one and only chance of that is if Fannie and Freddie stay right where they are and continue to do what it is they do - and regulate them well..
Yes this controversy will only heat up. Looks good for fnma tides are changing.
May be a new lawsuit filed! was posted on the FNMAS board by taintedfud.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91127711
Source: Pomerantz Grossman Hufford Dahlstrom & Gross LLP
NEW YORK, Aug. 16, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action in United States Court of Federal Claims, docketed under 13-cv-00496-MMS, on behalf of a class consisting of all persons or entities who purchased or otherwise held shares of Federal National Mortgage Association ("Fannie Mae") and/or Federal Home Loan Mortgage Corporation ("Freddie Mac") Junior Preferred Stock prior to, and as of August 17, 2012 all dates inclusive (the "Class Period"). This class action seeks to recover damages against the Government of The United States of America for just compensation for violation of the Fifth Amendment of the U.S. constitution. The Complaint alleges that the Government, by imposing the Net Worth Sweep, took Plaintiff's and Class' vested property rights without just compensation.
If you are a shareholder who purchased shares of Fannie Mae or Freddie Mac Junior Preferred securities during the Class Period, please contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
The Complaint alleges that in September of 2008, the Government (acting through the FHFA) placed Fannie Mae and Freddie Mac into conservatorship, putting it under the control of the FHFA, which is an agency of the Government.
In connection with the conservatorships, the Government (specifically, the U.S. Treasury) entered into substantially identical Preferred Stock Purchase Agreements (the "Agreements") with both Fannie Mae and Freddie Mac. Under these Agreements, the Treasury acquired from each company preferred stock (the "Senior Preferred Stock") that (i) is senior in priority to all other series of Fannie Mae and Freddie Mac preferred stock (all such other series of Fannie and Freddie preferred stock shall be referred to as the "Junior Preferred Stock"), (ii) was given an initial face value of $1 billion, but also provided that this face value would be increased by any amount the Treasury invested in or advanced to Fannie Mae or Freddie Mac, (iii) would receive preferential liquidation rights (i.e., would receive face value, as increased by any Treasury investments or advances, as a liquidation preference prior to any monies going to the holders of Junior Preferred Stock or Common Stock), and (iv) would earn an annual dividend of 10% of the face value (as increased by any Treasury investments or advances). In addition, each of the Agreements provided the Treasury with warrants that could be exercised at any time to allow the Treasury to acquire 79.9% of the Common Stock of Fannie and Freddie, respectively, for a nominal price.
Between the start of the conservatorship in September 2008 through the beginning of 2012, the Government advanced Fannie Mae and Freddie Mac more than $188 billion-most of which was advanced to cover accounting losses reflecting excessive write-downs of assets that have turned out to be worth far more than their written down amounts. These advances increased the face value of the Senior Preferred Stock held by the Government to approximately $189 billion, entitling the Government to an annual dividend of approximately $19 billion, which translates to a quarterly dividend of just under $5 billion.
By 2012, the housing market was well on its way to recovery and Fannie Mae and Freddie Mac had become profitable again, reporting increasing profits through 2011 and 2012. Indeed, by the second quarter of 2012, Fannie and Freddie made a combined quarterly profit of approximately $8.3 billion. This was the first quarter for which Fannie and Freddie reported a combined quarterly profit that exceeded the just under $5 billion quarterly dividend payable to the Treasury on its Senior Preferred Stock. Thus, by no later than the end of the second quarter of 2012, Fannie and Freddie were generating sufficient profits to pay a dividend to the holders of their Junior Preferred Stock (or to payout in a liquidation distribution, in the event of any liquidation, dissolution, or winding up of Fannie or Freddie). However, on August 17, 2012, the Government unilaterally amended the terms of its Agreements with Fannie Mae and Freddie Mac, and mandated that, beginning on January 1, 2013, Fannie Mae and Freddie Mac would have to pay the Government dividends equal to their entire net worth (the "Net Worth Sweep"), leaving Fannie Mae and Freddie Mac with no funds to redeem the Government's Senior Preferred Stock or to distribute to the holders of Junior Preferred Stock, whether by dividend, redemption, or in a liquidation. The Government's August 2012 action appropriated the valuable contractual and property rights owned by the holders of Junior Preferred Stock for no consideration.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
Yes this is going to run hard today and it may be tough to get shares.
The govt does not own 79.9% of the commons. They have a warrant option big difference.
Big buys coming in now as it has shown it can hold this bottom
Going to be green by 10:30
This is a great interview about Fannie Mae's legal issues everyone should have a listen
http://hwcdn.libsyn.com/p/8/f/4/8f477c08d726724b/FEATURE_MUSIC_LIBERTARIAN_CHRONICLES-2053_RICHARD_EPSTEIN.mp3?c_id=5885878&expiration=1374375737&hwt=8658c01ec2a1033f1430c0710f915038
I just emailed Fannie Mae investor relations. Below is a copy , I will post there response
Here is the link if you want to email as well.
http://www.fanniemae.com/portal/about-us/company-overview/contact-us.html
Xxxxx
Fudiciary duties to share holders
My question to you is why has there not been any effort to now move Fannie Mae stock trading to a new exchange. Even under conservatorship is the corporation not required to act under its fudiciary duties to the share holders and corporation.
Can you please explain in your response your position on this topic.
Xxxxx
Also as soon as net zero is reached you will see the present, common and preferred share holders file lawsuits
Here is the article
I think Fannie is planing on privatization and reducing the government backing, behind the scenes
Looking better all the time.
http://www.bloomberg.com/news/2013-07-31/fannie-mae-obtains-insurance-on-5-billion-pool-of-mortgages-1-.html
I remember reading an article that was posted on Ihub that Fannie is hiring it's own insurer to insure the mortgage wraps them selves.
This will allow them to become private
Can anyone else remember reading this article
Yes I use Questrade as well
What an Hugh buy at end of day T trade 860,000
Are you shorting using quest trade
Yes just looked at the chart as to the day of reporting earnings on the last 2 runs. You are right it was red each day, it is setting up exactly the same for this run.
I know what you mean. Sold have my shares before Obamas speach the other day and had difficulty getting back in at the price I wanted. They went right past my order on the way up. It only got filled as they were shorting going back down. I think shares are getting tight.
looks like Freddie didn't use it's DTC's