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A mortgage is cancelled upon refinancing. It no longer exists. The MSRs are worth $0 if there's no mortgage.
A new one is originated with a new MSR.
Facts matter.
The only reason why the loan originators sell MSRs is for the reason we've seen in the 1Q 2020 results: in order to avoid the risk of fair-value loss in a period of interest rates decline. RKT posted $911 million fair-value LOSS in the MSRs.
The MSRs is a stream of revenues and there's no other reason why they would give it up. Offloading MSRs is not "good" as you claim, is a desperate attempt to placate the carnage seen on the 1Q2020 Income Statement.
I've told you that the MSR is valued at $0 upon refinancing, when the first day it was recorded the entire revenues over the life of the loan.
The 1Q2020 results I posted that you call "partial screenshot". I've posted the entire Income Statement, so I don't know why you call it "partial".
Talk to me about finance and not that RKT is the Amazon of its sector, a digital company, "tech-based financial company", others are low-tech companies, etc
Primarily because RKT is using the software provided by FnF to sell the mortgages over to them.
What's next to justify a PER of 107 times? Do they have an App?
ROCKET COMPANIES $RKT, ANOTHER TURD IPOed BY $GS $MS
When interest rates drop, the fair value of the MSRs plummets. It's $0 upon refinancing since the loan disappears.
The carnage of MSRs fair value losses and high expenses due to loan workouts, will continue for the foreseeable future.
Holding companies trade at a 25% discount to fair value.
PER=107 times
No dividend, obviously, with the prospects mentioned.
The employees' bonuses are not linked to the Net Income.
There's always low internet traffic on Fridays. Good in-depth analysis daily.
It was filed with the Court of Appeals for the Federal Circuit, not with SCOTUS.
Please, don't let Guido praise me for this post. Don't praise anyone!
A warrant "ripe" doesn't exist.It's a Takings claim regardless of being exercised ACCORDING TO THE S.E.C. RULES, that deems it BENEFICIAL OWNERSHIP.
The SEC is the agency that regulates the financial markets.
You aren't doing the world a favor calling me anti-semitic for calling out the lunatic plaintiff Joshua Angel that is actively attacking the shareholders under multiple ID's in many internet message boards.
Finally, I haven't filed lawsuits because I don't live in the U.S., but I have managed to file two Amicus Curiae briefs in the court of federal claims, explaining what I've already stated in my multiple in-depth analysis.
Where are your in-depth analysis?
DID YOU JUST PRAISE THE PLAINTIFF FISHER AGAIN?
The one that skipped challenging the punitive warrant and only seeks self-hype.
Massive carnage in FnF's profitability during conservatorship and, specially, during Trump's tenure. Freddie Mac's Net Interest Yield, the difference between the interests on their assets and the funding cost of those assets, hit all time low at 50 basis points in the 2Q2020, when it was 79 basis points in the 1Q2011. This is the most important metric of profitability in a financial company. It's been prompted by the CRT scam, bonds issued at a 6% yield that steal earnings from FnF.
A dilution of 79.9% to the common shareholders can't be good for them.
Paying a commitment fee, now barred in the Charter's fee limitation, can't be good for them.
The funding commitment was already stipulated in the charter but limited to $2.25 billion, so Congress just had to update it. It's an explicit UST backstop.
You can't deny what is written in the charter.
Wazee's comment on the FHFA's website,is a disgrace for the common shareholders.
It wants the warrant exercised and the Treasury to levy a Commitment Fee, which is barred in the charter's Fee Limitation.
Anyone promoting that comment stating that "it benefits the common shareholders", lacks common sense and it's part of a conspiracy to rip-off the shareholders.
The part of the MANDATORY RELEASE in the FHEFFSA section 1369(e) was not written in my two Amicus Curiae briefs.
I posted it on Twitter, pointing out that Mnuchin lied in the 2019 Treasury Plan when he asserted that "applicable law does not prescribe an specific end point for the conservatorship."
RALPH NADER CALLED FOR INTERVENTION OF THE
S.E.C.
In a 2011 WSJ Op-Ed: "I have long fought against the systemic disempowerment of investors in large public corporations, but the mistreatment of the FnF shareholders is uniquely reprehensible." https://www.wsj.com/articles/SB10001424052748703555804576102423446952218
FnF are regulated by the Charter,not Consent Decrees or SPSPAs.
There's a Mandatory release in the FHEFSSA when FnF are declared Undercapitalized. The conspirators fool no one.
SCOOP.#FANNIEGATE ABOUT TO EXPERIENCE AN UNEXPECTED TURNAROUND.
The WSJ Op-Ed by the S.E.C. Chairman, Clayton, published 9 days ago, could be a sign that he is about to make an stellar appearance to claim that the Fiduciary Duty of the managers is a theme that falls squarely within the S.E.C. in its role of rulemaking and enforcement of the financial markets.
In the Op-Ed, he calls for establishing rules to align the interest of the shareholders with the obligations of the managers, like the fiduciary duty of casting a proxy vote in the case of fund managers, with respect to decisions in the best interests of the fund.
Also, it's important the S.E.C. regulation with respect to the Warrant, as it determines in the rule 13d-3(d)(1)(i) that a warrant is considered Beneficial Ownership regardless of having been exercised. A Govt having a Beneficial Ownership of 79.9% of a company, at an exercise price of $0.00001ps, is called Takings claim.
Judge Sweeney ignores the Financial Markets. She claimed that, because the law says "act in the best interests of FnF", the lawsuits are a derivative claim and the shareholders don't have standing, when that phrase is the Duty of Loyalty "no self-dealing" owed to the shareholders (Direct claim)
With respect to the Warrant, the judge asserted that it's an overpayment of FnF and thus, FnF are the ones that suffered the injury. Then, here also the shareholders don't have standing for Derivative claim. The truth is that a warrant is a takings case and the damage is suffered by the shareholders.
More detail on #Fanniegate.
No woman with large breasts will tell you the right roadmap. The only roadmap is the one set forth in the Law.
Restriction On Capital Distributions. Exception: repay the obligations SPS.
Later, Recapitalization per 12 CFR 1237.12.
The rest is fantasy and an attempt to rip-off the shareholders.
It's called Securities Fraud that includes misstatements on a public company's financial reports with the objective to deliberately misrepresent the actual financial condition.
We are talking about a pretty serious felony.
THE SHAREHOLDERS DECLARE WAR ON THE NEW FMCC CFO.
A Morgan Stanley alumni. What can go wrong? It's evident that he phoned his MS collegue, FNMA CFO, before the report (what is known as "to do a Pagliara") and learned that the Net Worth would increase 2.5 billion. He then decided that FMCC can't come out with +2.6 billion Net Worth in the quarter and he set aside a $705 million provision for future credit losses, arguing "due to higher expected credit losses as a result of the COVID-19 pandemic", to make it +1.9 billion (76% of FNMA), closer to a 66% relation of Assets, a provision way above FNMA's that posted just $12 million.
BOOM! THE FIRST QUARTERLY "ADJUST IT" CONTEST KICKS OFF.
Enjoy!
A target price without unveiling the adjusted EPS utilized, will be declared invalid for the FIRST QUARTERLY "ADJUST IT" CONTEST ON #FANNIEGATE.
The official contest starts after the earnings reports are published, so that we work with the actual numbers.
***#Fanniegate CONTEST IN 3 MESSAGE BOARDS*** Big day tomorrow!. "Adjust it-Day". Let's see who is the first one that comes up with a clean EPS after adjusting it.
These are the main line items on the Income Statements to adjust:
-Derivative Gains/Losses: the amount will be very small. The interest rates barely moved in the quarter.
-Provision for Loan Losses: it will be considered a one-off.
-Dividend on the SPS: currently is a dividend in kind and it can't appear on the Income Statement as it isn't an expense for the shareholders.
-Actual number of common stocks
-The TCCA fees will be cancelled by law in 2022, but they are illegal in the Charter's Fee Limitation, so they will be refunded in full.
Feel free to also adjust it with the CRT expenses, as the odds are that they will be deemed null and void by the FSOC, currently reviewing them.
The clean EPS will be annualized and multiplied by 13 so that the outcome is a stock valuation at PER 13 times.
The award is a public acknowledgment of excellence.
I'm surprised that Rosner is not insulted for endorsing the 10% dividend to Treasury. Only on #Fanniegate as always, the best source of information.
Another Rights advocate that wants to harm the shareholders' economic interest on FnF, like the controversial Pagliara.
HERA allows unlimited yield, but the Charter has a Fee Limitation to a yield similar to Treasuries. FACTS MATTER.
THE SECRET PLAN of recapitalization and reduce the obligations SPS.
THE U.S. CONGRESS WILL SURRENDER VERY SOON.
The case of Perversion of Justice against the Chief Judge of the Court of Federal Claims is the straw on the camel's back that will prompt the resolution of #Fanniegate.
Not only is a charge against a top judge appointed by Trump, but it also includes allegations that blow up the Conservatorship.
It adds up to a previous allegation of Racketeering against the UST and the FHFA, just with the provision 5.3 in the SPSPA where they agreed to don't uphold the FHEFSSA 1367, which is the section that sets forth the conservator's power of recapitalization, as an alibi to approve the cumulative SPS that are not recorded as Core Capital like the noncumulative.
This way, currently the Core Capital is NEGATIVE $165 billion together, which contravenes his power of Recapitalization.
More detail on #Fanniegate.
***BREAKING NEWS***JUDGE SWEENEY CHARGED WITH PERVERSION OF JUSTICE ON #FANNIEGATE
-The word "may" that prefaces the conservator's Power (put FnF in a sound and solvent condition), which means Recapitalization and Reduce the obligations with the Treasury (SPS). She claims that with "may", the conservator can decide when uphold his powers and implies that he can do the opposite instead, as it's what is happening since day one (deplete Capital with dividends to UST)
-She denies the conservator's Fiduciary Duty to the shareholders, in order to not allow challenging the overpayments.
-The Warrant considered an overpayment, when the injury is suffered by FnF. Then, the shareholders' claim is barred for Derivative.
But the truth is that the shareholders have 2 DIRECT claims that debunk her assertions, versus:
1-The Warrant: the injury is suffered by the shareholders that are stripped of 79.9% of their ownership. Under S.E.C. rules, the Treasury is the Beneficial Owner of the common stocks all along, regardless of the warrant being exercised. That's why FnF report earnings on a diluted basis and the stocks trade at $2. Expropriation Venezuela-style.
2-Breach of the conservator's Incidental Power (take any action authorized by this section, in the best interests of FnF or the conservator) that contemplates the Fiduciary Duty owed to the shareholders, consisting of:
-Overpayments (10%/NWS dividend). It's a Duty of Loyalty breach: act in the interest of FnF (no self-dealing)
-Don't uphold his Power. It's a Duty of Care breach: take any action authorized by this section.
No one follows the news from the FHFA. The comment period will end but the Final Rule can be approved one year, two years or three years later.
The FSOC already announced that it's reviewing the FHFA's proposed capital rule and days later that it will start a review of the secondary mortgage market with an activities-based approach, and the risk mitigants (CRTs), without mentioning that it will work with the FHFA.
The FHFA will be dissolved because it has failed as regulator and conservator, prior to a declaration of unconstitutional by SCOTUS.
Along with a Housing Finance System revamp and a #Fanniegate resolution.
All together.
You didn't understand the S.E.C. rule with respect to the Warrant.
That's why you assert that:
don't count those shares towards ownership %
A person shall be deemed to be the beneficial owner of a securiy, if it has the right to acquire it within 60 days through the exercise of a Warrant.
Did you just praise the plaintiff Bryndon Fisher again?
The Warrant is a Takings case regardless of getting exercised, ACCORDING TO THE S.E.C. rules, which are the only ones in town.
A warrant is considered BENEFICIAL OWNERSHIP of the stocks. That's why FnF publish their reports on a diluted basis.
BOOM! NEW ANALYSIS DEBUNKS PAGLIARA/WedBush's $0 TARGET PRICE IN THE CASE OF DILUTION
Posted on #Fanniegate.
$FMCC
Warrant exercised. TP=$48ps
Total shares:3.1b
RIGHTS ISSUE:
Raise $31b
1 new per 3 Rights at $30ps
New TP=$36ps.
The shareholders just have to pony up $30ps. If they don't, they simply sell their Preference Subscription Rights on the market.
By the way, the new fair-value ex-Right=$34.5ps
RIGHT, theoretical value=(mkt price-offering price)/(number of rights per 1 new+1)
(36-30)/(3+1)=$1.5
In a Rights Issue, the fair-value falls 28% due to the issuance of 33% more shares but, as the shareholders are the ones buying the cheap stocks at $30, below the fair-value, they partially offset the first effect with a 15% profit on the new shares (22% of their new portfolio, it raises to 25% on day one)
THE KEY
The shareholders get to maintain their percentage of ownership on their company by participating in the Rights Issue. FMCC issued 33% more shares and the shareholders bought 33% more shares.
No crappy Govt and its chamber-investors attempting to acquire companies in every manufactured crisis.
It turns out that Carlos was called "stupid" by Pagliara in a DM on Twitter (see screeshot) after his stance against the execution of the Warrant, something promoted by the conspirator Pagliara along with a swap JPS for Common Stocks, a Govt Explict Gtee on FnF's MBSs, stating that the 10% dividend is legal, and in favor of the scam CRTs. All in, all those actions translate into a 99% dilution of the common stockholders in their company, which is an outright theft of the govt and investors like Pagliara. That's why Pagliara is a sham. He set up a phony Association of Shareholders to trick the shareholders into accepting his plans.
The Secret Plan has not been announced, because nothing has been announced, that's why you can't bash the investment thesis by any investor on the basis that it hasn't been announced yet.
Stating that IT WILL NEVER HAPPEN, without any technical analysis to back it up is worthless.
My plan is based on dozens of pages of in-depth analyisis.
Follow me on Twitter, hastag #FAnniegate. Where the conspirators are beaten up badly.
He was blocked and insulted by Pagliara. So, there's no need to post his twitter account. Watch the screenshot where Pagliara calls him "stupid". That was not wise. You should stop protecting the enemies of the sharehoders. This answers your other question as to why you can't see Carlos' posts. You were blocked long time ago.
Here's the response to Tim Pagliara:
PAGLIARA SAYS HE TALKED W/ AN ANALYST PRIOR HIS REPORT W/ A TARGET PRICE OF $0
— Conservatives against Trump (@CarlosVignote) July 23, 2020
"Involved in EVERY ASPECT of this issue at the highest levels(since mid 08)"
Goal:
-Neutralize my twits:UST refund built/Guardianship
-Promote the narrative of only NWS at stake.#Fanniegate @WhiteHouse pic.twitter.com/qkKuEpSlOk
A stock is never worth zero due to dilution, because dilution means that there will be issuance of common stocks, either due to the warrant exercised, the conversion Preferred for Commons and/or stock offerings.
If the analyst says that the commons are worth zero, it means that the commons recently issued to those guys are worth zero as well.
So, all Equity worth zero while FnF own or guarantee two-thirds of the entire U.S. housing market.
That "JebBush" brokerage firm must be wound down.
***JUST IN***JUDGE SWEENEY,FHFA-C AND U.S.TREASURY PLACED INTO GUARDIANSHIP AFTER BEING DECLARED INCAPACITATED.
Three tremendous errors in comprehending texts, brought us here.
1-The Charter's Fee Limitation bars the U.S. Treasury from assessing or collecting a fee or charge on or with regard to the purchase, sale, pledge...of securities by FnF. Exception: low-cost redeemable obligations (SPS)
FNMA's Charter starts with: "PROHIBITION ON ASSESSMENT OR COLLECTION OF FEE OR CHARGE BY THE U.S."
More clear if you don't understand FMCC's Charter that calls it "Fee Limitation".
So, no TCCA fees, commitment fees, 10% dividend, NWS dividend, Warrant, etc.
2-The Restriction On Capital Distributions (like dividends) when undercapitalized (IN GENERAL). Exception: reduce the SPS.
3-The word "may" that prefaces the conservator's Power and Incidental Power, isn't an option on when uphold his powers and do the opposite instead.
The announcement of Guardianship sent shock waves across the country.
More detail on #Fanniegate. Daily in-depth analysis.
Everything will be part of the same package of resolution of Fanniegate, since I also expect that their Charter will be revoked.
A bundled offer: refund of SPS overpayments, tcca fees, Moral Damages, a housing finance system revamp, etc
The Secret Plan is the only one that upholds the law.
Judge Sweeney's assertion that the Conservator can decide when uphold his powers, because it prefaces with the word "may", is crazy.
Gabby's price target? Gabby's price target?
She works for ACG Analytics, which is a Lobbying Firm hired by the conspirators Moelis, John Paulson, Blackstone, Pagliara, Berkowitz, etc., to lay out their plans of deception and trick the shareholders into cheering them up: more SPSPAs, Consent Decrees, only a $30 billion refund after paying a 10% dividend to Treasury, follow-on stock offerings, negotiation Berkowitz/Mnuchin at the Supreme Court for a swap Preferreds for Commons, etc.
If you want to know the target price, just ask me.
$240 ps at a PER of 13 times, assuming that the TCCA fees are scrapped and the Treausry reimburses what it owes to FnF.
The current CRT declared null and void, makes it a floor stock valuation.
GS's Paulson didn't need to coerce his buddy GS's Bashi at the BOD of Freddie Mac. Hello?
JUDGE SWEENEY IS HAMMERED DOWN ON #FANNIEGATE TODAY.
Her ruling on WaFd case is the epitome of corruption.
Here.