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a beautiful sight http://finance.yahoo.com/quotes/FMCC,FNMA,FMCKJ,FMCKI,FMCCM,FMCCK,FMCCT,FMCCI,FMCKK,FMCCG,FMCCH,FMCCL,FMCCN,FMCCO,FMCCP,FMCCJ,FMCKP,FMCCS,FMCKO,FMCKM,FMCKN,FMCKL,FNMAP,FNMAO,FNMAM,FNMAG,FNMAN,FNMAL,FNMAK,FNMAH,FNMAI,FNMAJ,FNMAS,FNMAT,FNMFM,FNMFN/view/v2?info=view_updated
just beautiful....
i'm the one talking about maybe selling all the time...and I don't...and the ones that don't talk, are actually selling.
go figure LOL
interesting...
Freddie Mac may re-enter pre-2008 business line
http://www.globest.com/news/12_559/losangeles/multifamily/Freddie-Mac-Talks-of-Reinstating-Programs-330932.html
Freddie Mac Talks of Reinstating Programs
By Carrie Rossenfeld | Los Angeles
Register and earn AIA/CES, CPE, MCLE, OREA and DRE Continuing Education credits at RealShare Los Angeles on March 27, 2013 at the Hyatt Regency Century Plaza, Los Angeles, CA.
Eisendrath and Brickman discussed financing and the Beastie Boys.
LOS ANGELES-Freddie Mac Multifamily is contemplating reinstituting some value-add financing programs that had previously been stopped, Brian Eisendrath, vice chairman of CBRE, tells GlobeSt.com. Eisendrath recently had a fireside chat here with David Brickman, head of Freddie Mac Multifamily, during which Brickman discussed the programs, which include acquisition-upgrade and acquisition-rehab programs currently in the planning stages but similar to what the GSE had offered in 2007 and 2008, when CBRE clients were doing many renovations.
During the chat, an intimate client event which roughly 50 people attended, Brickman also talked about potential credit changes for 2013, says Eisendrath. “He doesn’t anticipate any additional tightening of the product parameters this year.”
Brickman also discussed where he sees pricing headed, since there may be some room for spreads to compress. “He said one of his concerns is that when treasuries ultimately increase, spreads may increase, too,” says Eisendrath.
As far as the future of Freddie Mac is concerned, “David gave his vision on some of the potential outcomes for Freddie Mac, one of them being potentially separating the single-family and multifamily operations and privatizing the multifamily group,” says Eisendrath. “We also talked a little bit about the securitization process and the success of the K-series, which is basically Freddie Mac’s securitization model, and David was the brainchild behind it. Ultimately, through securitization, borrowers are able to achieve better pricing.”
To lighten the mood, Eisendrath says he and Brickman discussed the Freddie Mac executive’s opportunity to play with the Beastie Boys years ago when he played in a band. The topic helped break the ice on a potentially solemn discussion.
As GlobeSt.com reported in February, Freddie Mac has issued its third multifamily-backed Structured Pass-Through Certificates—a.k.a. its K-Certificates—for the year. The offering, which is expected to be approximately $900 million, is backed exclusively by 5-year collateral, a tweak that the GSE tried out last year and hinted that it would try again when it had accumulated enough paper.
ah yes...I stand by that :)
thx
beta...not sure I said hedge funds putting together something for JV/securitized platform? can you paste my quote so i can clarify if I need to?
thanks,
b
yeah...that's the law. no suprise here.
office pool folks, place your bets. i never pretended to actually KNOW! LOL
ah well...that was my pick for the office pool :)
8 or 9 hours... :)
and has to be before the 15th....not april
3Q she was way earlier than Freddie...i rember the CEO of Fannie came on in the morning shortly after the press release of blowout numbers.
i expect an even bigger blowout tomorrow. i hate it when it's after the bell friday.
then again...got another week :)
it's always fun, huh?
let's pray the 10-K doesn't twist the knife in our back with all that "no value for our shareholders" B.S.
i bet earnings before the bell tomorrow. i think last go around she surprised me on a friday morning, ahead of freddie of course...
if we had a pool between now and the 15th...i say tomorrow before the bell :)
woonded...see if you can contact him through seekingalpha, he posts there. or did before his boss came down on him (I think he said that)
it's a free board here :)
mstech was admin for a while...not sure where he disappeared. all can volunteer.
frankly, I don't have tons of time, so i've been relying on 4cent to be honest when I've been away.
be sure to read the terms of service and FAQ's on what IHub expects...if you get too overzealous, they will reverse your decisions...happened to mstech.
welcome!
Law dog...("Tombstone" movie reference)...i see your angst now.
When I looked at the "Manage Board" link where 4cent and I have volunteered to assistant admin. IHub Admin deleted your posts and cited "off topic".
your posts are ok by me...email IHub if you are concerned. Neither I nor 4cent had anything to do with your message deletion.
BTW- you can volunteer to help admin and you would have full access to see why posts are deleted and by whom. And I think there is a link on your page that actually lets you inquire as to who flagged you and why. I forget where to find that...
law dog...not sure why you are dragging me into this LOL! I'm not sure I have ever written to you anyway...if I had, it was a civil response to something you said.
indeed debil. for the record, I have never sold (except to meet cashflow needs...so in a sense, I'm down a couple more ten thousand!)
beta...IHub Admin rightly deleted my post as off topic. but thought this little tight nit group might enjoy the spectacle as no Fannie earnings yet....
brand---i never said anything to the contrary!
the question is, will they sweep profits to perpetuity until all business shifts to wells fargo origination using the JV to securitize and F&F are wound down to nothing? who knows.
but i never said anything to the fact that F&F could easily (well at least Freddie before the business gets wound down too far) Freddie at least, and probably Fannie can EASILY pay back taxpayers and generate profits for us.
whether they are allowed to???? dunno
has anyone read the US Charter?
you know...a lot of answers of shareholder rights might actually be in there! it would say, with the amendments from the 2008 act that established FHFA, what exactly can be done, and what our rights are, and what is left to the purview of Congress and who trumps who. any legal case would start with that document.
i think someone should take a crack at finding and reading the US corporate charter for Freddie and/or Fannie. i don't have time today...maybe in a few days some time might free up between family and work.
yes sir. some $200,000 on common...which I switched to prefferred and right now, down another $100,000 with the preferred (cost basis was $3.25 on the $25 CKJ...averaged down with some purchases later...I might be a little under $3 now, but haven't calculated from my statements), give or take. I always believed in the financial story. thinking Kyle Bass had it right that he bailed cause no appetite for change in the political circles.
OT: you lehman folks, buy ritz carlton?
Who Wants To Buy Lehman Brothers’ Maui Resort?
By Bess Levin
http://dealbreaker.com/2013/03/who-wants-to-buy-lehman-brothers-maui-resort/
The Bros holding company is looking to sell its Ritz-Carlton Kapalua, if you happen to be the market and want to do their creditors a solid. (They also need a broker, if anyone’s got a license.) The place comes with 463 rooms, six restaurants, two golf courses, and a spa; if you act fast, they’ll throw in a couple of Hawaiian shirts once worn by Dick Fuld and never before seen footage of him working the drums during a company luau. [Bloomberg]
there is an argument for me to scale back and not be all in. if your worst case, europa, comes to pass, does one really want to be all in pending litigation???? that's risky! I think I don't want to be there.
i have never invested in bankruptcy situations for that very reason, litigation and uncertainty. i could consider bonds in bankruptcy, but I don't normally invest in bonds...i may wait for the next american airlines situation and pounce. I've seen that play work out and it might be a speculation I'll try in the future..with 10% capital. i think it may be wise to take some money off the table and be more conservative until the next opportunity comes. I'm 36...I will have many years of bubble bursts to get another shot...if I still have chips on the table. if freddie goes to zero, I'll have lost about 2/3 of my chips. easier to start over with $150,000 I have now, than the $50,000 I'll have left if it goes to zero. (I have $200,000 in my house...so, I'll stay solvent)...but yeah, I am thinking with my situation, a scale back may be wise.
Looking back and the hundreds of thousands I lost, I think it was a mistake to make a "sure bet" when government is involved. and don't mistake, financially, this was a sure bet.
he makes a lot of sense...rosner really smart. he did say there is value, but also said, don't flush them completely and lose the $150 bn of taxpayer money (did he say 150? if so, he might have been off base there...), anyway, he mentioned not losing money for taxpayers, didn't mention private investors like us.
ticking down on weak retail hands.
i'm not doing anything till I see fannie's earnings crush. I believe the number will be stunning. then, I have a lot to think about...
you are very fair europa...good on you.
who is david reilly?
i must say...i think we have been warned...I am thinking I take half off the table after fannie earnings. I need to be more diversified and take the loss.
what about the argument that the white paper is 2 years old and more recent statements since August 17th could indicate a change of policy? not unheard of to change policies over time, especially after an election.
please don't slam me personally, this is a reasonable rebuttal. thanks everyone for keeping it civil
debate my posts stock. don't appeal to authority. my knowledge is very deep as well. if you have facts that don't support what I'm saying, don't tell me to go away, give us the facts.
otherwise, your head is in the sand.
sorry stock analyze...I'm taking a fundamental approach
woe to those that won't consider an opposing point of view. believe me, it is as hard for me as it is for you. if you want to chase off differing opinions off the board, you have the wrong idea what this is for. to be fully informed, one should listen to reasonable opinions from all sides.
i'm not going anywhere. the lingering question is, will this JV create value for us, beyond the taxpayer...or will they sweep all positive net worth until F&F are out of business and make the biggest hedge fund return the world has ever seen...for the taxpayer, but not us.
a legit worry. you should think about both sides stock. and rather than slam me, why don't you argue against the demarco quotes i'm posting and tell us all how I am reading his words incorrectly? that would be an interesting exercise for us.
"The overarching goal is to create something of value that could either be sold or used by policymakers as a foundational element of the mortgage market of the future," Edward DeMarco, acting director of the Federal Housing Finance Agency, told the National Association for Business Economics.
http://www.cnbc.com/id/100521665
well, this is positive...build something of value...but, still, if it results in positive equity when the JV is sold off into the private space, if the gain is swept by the new treasury agreement, we still get ZERO
I hate being the bear, but I am not seeing a lot of reason to be positive...
g-fees to wind down F&F
more demarco:
"However,the increase in guarantee fees is part of the contract [contracting F&F is the context if you read the report] framework; it is not designed primarily to increase the Enterprises’ revenue. The idea is that at some point the increases in guarantee fees will encourage private capital back into the market. We are not there yet, but in conversations with market participants, I think we are getting closer. We also set some goals in 2012 of executing on risk sharing transactions. While we did not execute any transactions, a considerable amount of preparatory work was done to lay the groundwork for 2013."
i think i may sell after a nice bounce. i think there is some volatility to come with lots of good news coming...but, DeMarco remark here:
http://www.fhfa.gov/webfiles/25024/EJDNABESpeech.pdf
"In addition, the recent changes to the PSPAs, replacing the 10 percent dividend with a net income sweep,reinforces that the Enterprises will not be building capital as a potential step to regaining their former corporate status."
something tells me that the Administration can't be more clear...time will tell whether this policy is reversed, but it is looking more and more permanent to me...share price today isn't supporting that...but it looks to me that they are telling us as loud as they can that these shares will have no value
i'm going to keep sitting for a while, but my mood is darkening. i won't panic sell...
thx for the honesty.
that should satisfy your "haters" if I may throw that term around. we are all human and subject to emotion as well as logic. best of luck!
beta --- the JV will not be a gain
the transaction will be a reduction in cash and other assets (intellectual property, computers, etc.) on the F&F balance sheets (probably pro-rata with fannie contributing more) and there would be a resulting asset, investment in affiliate or JV, or however the accounting wonks call it. Goodwill would be carried for any of the legal and professional expenses setting up the entity. It will be a zero-sum game in the first period. Cash, intellectual property (the formulas of securitization) and maybe some fixed assets like computers will be deducted from the asset side of the balance sheet, and there will be an offset increase in goodwill and investment in affiliate on the asset side of the balance sheet.
in later years, net income will be boosted by any dividends paid by the JV (if they are paid, they may elect to reinvest for growth) and in later years, the asset (the JV) may be marked to market as an unrealized gain in value as the business grows.
that aside, remember what I said yesterday, will the value of the JV exceed the value lost due to F&F facing competition in originating mortgages. THAT is the valuation question that people like Derek Pilicky at Gator should be solving today...I wish I had a model and the time, but it would take days and days to set that up. I think the hedge fund guys are doing the work, and I expect the share price to reflect that work in the future.
It is very bad of me to be invested this much without understanding that last paragraph. Usually when I invest, I try to understand everything...but this is getting more complicated by the day. Two years ago it was simple...they will be cash machines and will get the government paid back.
now we have dividend sweeps and JV's that might add more profit, or take away profit (once F&F start losing origination business and have margins squeezed due to competition on what business remains)
kissing is right...debt goes on the books...it will not add to the deficit because the assets go as well...but the debt increases, and that is that. when the US debt, what, $16 trillion now??, the US doesn't have a deficit of 16 trillion, after all, we own land, aircraft carriers, the capitol building, the list is endless...so, putting F&F on the books would spike the public debt which is why it has not been done (and will not be done, and I believe gives us a shot at value some day because they will never put it on the balance sheet as spiking the debt clock in one move would be political suicide!)
but, the assets go too (assets are never reported by the press, just the debt clock...though the amount of deficit is important, as well as interest coverage ratio (Can you collect enough tax to pay debt...F&F would be neutral on that count as well as they can pay their debt). but, the debt would go on the books and optically to the public, that would be very bad.
so joe...why are you still in?
I've made the case many times why I still am...
woonded...i meant sell now! tripled from bottom LOL!
my track record, however, by my actions, is saying I won't sell ever...I feel insane some days...believing that the power to mint money will overcome SEC filings claiming there will likely be no value.
joe -- positive spin:
time could force the fact that the government gets paid back and there is some residual value...but yeah, if they keep sweeping the dividend beyond that too far (getting a fair return), well, they have been nationalized effectively. will the public support that??
also, we have been told for some time that they intend to form a joint securitization platform...this news should be no surprise. but his quote about something surviving should F&F cease to exist is troubling.
there is an argument for me to cut some losses...i'm thinking about taking half off the table after we have tripled from the bottom....
DeMarco: "if the two companies no longer exist,"
http://www.bloomberg.com/news/2013-03-04/fannie-mae-regulator-sets-securities-platform-for-post-gse-world.html?cmpid=yhoo
Their new joint securitization company will have its own chief executive officer and chairman, and will be funded by Fannie Mae and Freddie Mac, DeMarco said yesterday. It will create a single standard for issuing securities that could survive independently if the two companies no longer exist, he said.
[yeah...buyer beware...SEC filings make no bones about stock having likely no value...time is on our side...I'll keep holding this ticket a while longer...]
“One of the challenges that everyone has in conceiving of housing-finance reform and moving to a post-conservatorship world is, where’s the plumbing? Where are the rules? Where are the standards?” DeMarco said. “What we’re trying to do with these strategic goals is to build out that infrastructure and those standards so it would ease the transition.”
Policies aiding the return of private capital to mortgage finance will be positive for investors, according to Jaret Seiberg, senior policy analyst at Washington Research Group, a unit of Guggenheim Securities LLC.
New Opportunities
“This suggests opportunities for the big banks and for fixed-income investors looking for new ways to invest in the mortgage space,” Seiberg wrote in a market commentary.
http://www.bloomberg.com/news/2013-03-04/fannie-mae-regulator-sets-securities-platform-for-post-gse-world.html?cmpid=yhoo
Clarity needed on Fannie, Freddie reform, mortgage bankers say
March 5, 2013, 10:52 AM
http://blogs.marketwatch.com/election/2013/03/05/clarity-needed-on-fannie-freddie-reform-mortgage-bankers-say/
More transparency is needed on goals for new federal plans to reform government-backed mortgage buyers Fannie Mae FNMA and Freddie Mac FMCC , the president of the Mortgage Bankers Association said Tuesday.
The Federal Housing Finance Agency, Fannie and Freddie’s regulator, announced plans on Monday to create a company that will replace and consolidate some of the mortgage buyers’ infrastructure.
“The overarching goal is to create something of value that could either be sold or used by policy makers as a foundational element of the mortgage market of the future,” said Edward DeMarco, FHFA’s acting director. “We are designing this to be flexible so that the long-term ownership structure can be adjusted to meet the goals and direction that policymakers may set forth for housing finance reform.”
Read more about the new entity. Read DeMarco speech.
Shares of Fannie fell more than 3% Tuesday morning, while shares of Freddie fell more than 5%.
While FHFA’s plan to create a new entity is a good start to overhauling the government’s role in housing finance, several important questions remain, said David Stevens, president of the Mortgage Bankers Association.
“How does this solution interplay with all of the other actions on the regulatory front relating to housing policy,” Stevens said. “Will it be used if Fannie and Freddie are put out of business?”
Critics say Congress and the administration have moved too slowly on housing-finance reform, and proposals such as FHFA’s could spur action. Some observers hope that a recent bipartisan report that recommended eliminating Fannie and Freddie and increasing the private sector’s role in housing finance will act as a framework for discussions in Washington. Read more about the bipartisan housing report.
However, with political gridlock in Washington, reforms of the government’s role in housing finance may not pass in the near term.
“GSE reform is unlikely before the next election and may not even occur until a new president is inaugurated,” wrote Jaret Seiberg, a policy analyst with financial services firm Guggenheim Securities, in a research note. “This is why the status quo is likely to remain, which we believe is broadly positive for housing, including mortgage insurers and home builders, by ensuring GSE loans remain readily available.”
–Ruth Mantell
what i don't like is timing of the announcements. the news, good or bad, seems tied to quarter end reporting...get great news, then unsettling news. happened in august, now this.
lucky the stocks aren't bleeding. it seems the wisdom of the market believes that this could be a conduit for solidifying business.
let's not be fooled though, captial used to fund this will not be swept to treasury to pay down net investment, and it is unclear whether the profits of the joint venture will be enough to replace freddie and fannie loss of market share.
this is not easy stuff to figure out...
debil...i sticky-noted the r-ship c-ship difference for a reason LOL! the 10K spelled it out very nicely...