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Or maybe he knows somethings we don't? Nah...is just that he know that this is taking another direction and if FnF pops up like it pops down in 2008, the bones of bashers and dumpers will crack under the weight of bulls and screams will be heard in China, he know that LMAO!
GLTA
Sorry stockprofitter, but the fact that MH pumping FnF and predicted $4 for tomorrow, is really more amazing than this news.
GooooFnF
PS: Good one
Why Fannie and Freddie Are Paying Back Uncle Sam
By NICK TIMIRAOS
A few years ago, the conventional wisdom in Washington said that Fannie Mae and Freddie Mac wouldn’t ever be able make taxpayers whole for the 2008 bailouts of the mortgage-finance giants.
Those who haven’t followed the companies closely will be surprised to learn that Fannie and Freddie are now on the brink of doing just that.
When the companies report their third-quarter earnings, which could take place as soon as this week, they could show that by the end of this year, they’ll have sent more money to the Treasury in dividends than what they borrowed over the past five years. (And if that doesn’t happen this quarter, it very likely will occur when the companies report their fourth-quarter earnings next February.)
Of course, Fannie and Freddie aren’t allowed to “repay” the money they’ve borrowed from the U.S. Treasury. Here’s how their agreement works: The government in 2008 agreed to inject massive sums of aid so that Fannie and Freddie would stay solvent, allowing mortgage markets to operate smoothly. In exchange, the Treasury took a new class of “senior preferred” shares in the companies that originally paid a 10% dividend; they also received warrants to acquire up to 80% of the firms’ common shares.
The agreement doesn’t provide any mechanism for Fannie and Freddie to buy back the government’s senior preferred shares, which now total $188 billion. If it sounds like Fannie and Freddie are making interest payments on a loan that can’t ever be repaid, that’s because they are. So any discussion of “repayment” needs this disclaimer: Even once Fannie and Freddie have paid $188 billion in dividends, they’ll still owe $188 billion.
This makes any “repayment” of taxpayers a mostly symbolic event—one that doesn’t change whether the companies can be freed from government control. And the political ramifications are altogether unclear. At a housing forum last month, Sen. Mark Warner (D., Va.) brushed away the idea that Fannie and Freddie should be returned to their former ownership simply after paying as much in dividends as they had borrowed. “I was a venture capitalist for a lot longer than I’ve been a politician. If I had put $180 billion into Fannie and Freddie back in 2009, I’d expect more than a one-to-one return on that,” he said. “So once I got a 30-to-one return…talk to me about Fannie and Freddie making money.”
Still, the event is significant given that few expected it would happen this soon. What changed? Here are nine reasons the companies are paying the Treasury more money:
1. The government altered the terms of its support of the companies last year. It scrapped the 10% dividend, which in some quarters had forced the companies to borrow money to pay the dividend, and instead required all profits to be sent to the Treasury as dividends. In quarters where the companies run a loss, they don’t owe anything. While this hasn’t changed the firms’ profitability, it has sharply increased the amount of money the companies send to the government. It also prevents Fannie and Freddie from rebuilding capital. (Shareholders have filed lawsuits challenging the arrangement; Treasury and FHFA say they’ve acted appropriately.)
The companies have sent $146 billion to the Treasury in dividends, with $91 billion in payments being made this year. If the old terms had been in place, the companies would have sent around $14 billion to the Treasury this year. The Treasury, meanwhile, has invested $188 billion in the companies.
2. Fewer homeowners are defaulting. Fewer than 2.6% of loans backed by the companies were 90 days or more past due at the end of September. While this is still very high historically, it is down sharply from peaks of 5.5% and 4.1% for Fannie and Freddie, respectively, in early 2010. Fewer delinquencies mean fewer foreclosures, reducing the amount of money the companies have to set aside to cover loan losses.
3. Home prices are up sharply over the past year. The companies estimates around loan losses are heavily sensitive to home prices because that determines how much the companies lose when they sell homes through foreclosure. Losses on foreclosures are down sharply as prices have risen. During the second quarter, Fannie lost around 25 cents for every $1 in debt that went through foreclosure, down from 35 cents one year earlier. The upshot is that the companies are foreclosing on fewer properties than a year ago, and they are losing less money when they do.
4. Exposure to loans from the worst years of the housing bust is declining. Loans made in 2006 and 2007, which have been by far the worst performers, are either moving through foreclosure or refinancing, thanks to a program the companies launched two years ago that made it easier for underwater borrowers to refinance their mortgages. The dollar volume of loans from these two years has fallen by 46% through June from two years earlier, according to an analysis by Jim Vogel at FTN Financial. Home-price gains have also reduced the number of borrowers who are underwater and at risk of foreclosure.
5. The companies are guaranteeing much better quality mortgages, and they’re charging significantly more for those guarantees. Fannie and Freddie don’t make loans but instead buy them from banks and other lenders, packaging them together and selling them off as securities to investors. They charge “guarantee fees” to lenders when they buy those loans, and those fees have more than doubled over the past three years. Meanwhile, the companies have tightened up lending standards, and banks have been even more cautious to guard against the risk they’ll have to buy back loans that have underwriting mistakes.
6. Fannie and Freddie have won some big legal settlements. The firms’ regulator, the Federal Housing Finance Agency, has settled five of 18 lawsuits filed on the firms’ behalf in 2011. Two of those settlements—with J.P. Morgan Chase & Co for $4 billion and UBS AG for $885 million—have been made public. Others could follow. Also, the companies have recouped billions of dollars by forcing banks to buy back defaulted mortgages that ran afoul of underwriting guidelines.
7. Some of the eye-popping profits have been driven by the same accounting rules that required the companies to take eye-popping write-downs five years ago. Fannie, for example, reported a $58.7 billion profit in the first quarter, due mostly to a one-time gain of $50.6 billion from reclaiming certain tax benefits that had been written down during the bust. Freddie has around $28 billion in so-called deferred tax assets that it hasn’t yet claimed, but the company has said it could recapture some of those benefits as soon as the third quarter. “Much of the current ‘profit’ is the reversal of earlier” loss reserves, meaning “the original losses that caused great outrage weren’t necessarily that big to begin with,” wrote Mr. Vogel earlier this year.
8. The firms have very little competition right now. Outside of other federal agencies such as the Federal Housing Administration, there are few investors willing to invest in mortgages or mortgage-backed securities right now.
9. The companies have as close to an explicit government guarantee as they can get. Because the Treasury has made clear that it will ensure the companies have enough resources to pay bondholders, Fannie and Freddie have been able to borrow cheaply in the capital markets to fund portfolios of mortgages that, while shrinking, are still large.
I'm talking about this for a while, just that never before a public official openly stated it, with this impudence. The Govt been acting as a pawn shop. Shame of this politshits.
GoooFnF!
Just look what they did with AIG and GM, now that the pps went up, they're selling the shares plundered during the bailout. The same thing they will do with FnF, live to see.
GoooFnF
Old but right in many things, proven over the time. Thanks
GooooFnF!
Where can I find this information jarenawer?
TIA
Wells Fargo Settles With FHFA for $335 Million
Wells Fargo WFC +0.24% & Co. paid $335 million to the Federal Housing Finance Agency as part of a settlement for allegedly misleading disclosures on mortgage securities the bank sold to Fannie Mae FNMA -2.14% and Freddie Mac, FMCC -1.79% the bank said Wednesday in a regulatory filing.
The fourth-largest U.S. bank by assets joins J.P. Morgan Chase JPM +0.27% & Co. and others in settling recently with the regulator that oversees the mortgage-finance giants. The Wall Street Journal and others reported the settlement last week, but the amount wasn't known at the time.
The bank said the money to pay the settlement had already been set aside.
The FHFA filed 18 lawsuits against the world's largest banks in 2011 seeking unspecified damages on $200 billion in mortgage securities bought by Fannie and Freddie, but never filed a lawsuit against Wells. Instead, the two sides reached an agreement that let the FHFA reserve the right to file a lawsuit after the statute of limitations ran out in September 2011 so that the bank and the regulator could continue settlement talks.
J.P. Morgan Chase settled with the FHFA for $5.1 billion last month. Separately, last week, Ally Financial Inc. said it had reached a settlement with the FHFA and had set aside $520 million for that deal and a separate accord with the Federal Deposit Insurance Corp.
The FHFA is seeking about $6 billion in damages from Bank of America Corp. BAC +0.22% , people familiar with the matter have said, on $57.5 billion in securities.
Wells Fargo wrapped up other settlements in the third quarter. The bank settled for undisclosed sums with the Federal Home Loan Banks of Indianapolis, Chicago and Boston over misleading offering documents tied to mortgage-backed securities. The bank said it had previously set aside the money to cover the settlements.
I'll prefer an steady uptrend at this point. Anyways they do whatever they want. According to this news is very possible that net zero will reach soon and this is and important step in the rise of this stairway to heaven. Gl
GooooFnF!
PS I hate shorts too
Don't forget the next 12 are also the hearings of cases lawsuits against the Govt. In the Court of Appeals
gl
Yes if onvo keeps above 8 EOD!
Then Fannie it's no longer a gorilla? Omg
GoooFnF!
Patience is the key! Daily RSI needed to cool off a little! We are going to break it! Maybe not today, but soon!
Probably!
Nobody knows! But it has to be on or before Nov. 12th.
Lets hope it test again 8.00
Oh yes.. you're PUI LMAO!!
Take care body...You need to cool off like the RSI of FnF
Are you PUI? LOL
Goooo FnF!
Everything is a FnF manipulation.
Gl
Virgin Galactic CEO: We Can Absolutely Go to Mars with Fannie
http://finance.yahoo.com/blogs/daily-ticker/virgin-galactic-ceo-absolutely-mars-164500882.html
GoooFnF!
Freddie Mac defeats lawsuit over pre-crisis disclosures
http://finance.yahoo.com/news/lawsuit-against-freddie-mac-rejected-145659956.html
Housing regulator unveils new insurance fee guidelines
http://www.reuters.com/article/2013/11/05/us-usa-housing-fhfa-idUSBRE9A40O820131105
There is no agreement in Congress, and can't put in receivership because FnF are profitable ..
FEDERAL HOUSING FINANCE AGENCY
QUESTIONS AND ANSWERS ON CONSERVATORSHIP
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.
Q: Is the Company able to buy and sell investments and complete financial transactions during the conservatorship?
A: Yes, the Company’s operations continue subject to the oversight of the Conservator.
Q: What happens if the Company is liquidated?
A: Under a conservatorship, the Company is not liquidated.
Q: Can the Conservator determine to liquidate the Company?
A: The Conservator cannot make a determination to liquidate the Company, although, short of that, the Conservator has the authority to run the company in whatever way will best
achieve the Conservator’s goals (discussed above). However, assuming a statutory ground exists and the Director of FHFA determines that the financial condition of the
company requires it, the Director does have the discretion to place any regulated entity,
including the Company, into receivership. Receivership is a statutory process for the
liquidation of a regulated entity. There are no plans to liquidate the Company.
Q: Can the Company be dissolved?
A: Although the company can be liquidated as explained above, by statute the charter of the
Company must be transferred to a new entity and can only be dissolved by an Act of
Congress
Will this be true?
Banks Sued for Manipulating WM/Reuters Rates.
http://www.zacks.com/stock/news/113444/banks-sued-for-manipulating-wm-reuters-rates
I see...TY much javachip
Gl
I'm out of the compu...I'll see it later, thanks. Just wanna know if was favorable or not.
Gl
You saw it? I could not ... Gl
This is just a manipulated impasse. We're in uptrend since 10/21. Everyone forgotten that just a few days ago, we were trading between 1.50-1.78 maximun? Never before since 2008 this stock had remained stable over the $ 2.10 Everything looking good. I prefer this way!
Goooo FnF!!
I called FMCC and FNMA....If you want look at my
post# 144088
Gl
Banks Still Reluctant to Ease Mortgage Lending Terms: Fed Survey
http://www.thestreet.com/story/12094883/1/banks-still-reluctant-to-ease-mortgage-lending-terms-fed-survey.html?puc=TSMKTWATCH&cm_ven=TSMKTWATCH
JPMorgan Faces DOJ Probes
http://finance.yahoo.com/news/jpmorgan-faces-doj-probes-213502246.html
The same thing they said to me..Did you call to FMCC?
Gl
Yes, could be next Friday. As we discussed last time, both FnF were crushed after a weekend. They always will be in advantage because they have access to information that we don't have and always will try to get us out of the game. For the rest the only common denominator that I can see among these events, is the Fed, the Executive Order 11110 and 11/22/63.
gl
GooooFnF!
Earnings Report dd..
Freddie don't have to report any exact date for Q3 because they are in c-ship, all the dates listed are just media speculation, that's were the exact words of the person who answer the phone in Investor Relationships Department of Freddie Mac. However the person who answered the phone in the same Department in Fannie said that the report can be ON or BEFORE Nov. 12.
According to the SEC's regulations, Companies have till 45 days maximum to report the Earnings after the end of the quarter, so it could be, even until Nov.15.
GLTA
Enjoying to the happiness of others, as it were our own, is have to God in the bottom of the heart. For people who sincerely feel this way, my best wishes. GLTY too!
Gooo FnF!!!
Now, they will have to take action ....
An ineffective, fractious and fiscally irresponsible government has slowed the U.S. recovery and counteracted the stimulative effects of Federal Reserve's super-accommodative monetary policy, a top Fed official said on Monday.
Our time is coming.!!
http://www.reuters.com/article/2013/11/04/us-usa-fed-fisher-idUSBRE9A301R20131104
GooooooFnF!!
Traders Recap- Federal National Mortgage Association (OTCBB:FNMA), Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY), Komatsu Ltd (ADR) (OTCMKTS:KMTUY), JULIUS BAER GROUP (OTCMKTS:JBAXY)
SUBMITTED BY EDITOR BSD ON NOVEMBER 01, 2013 - 12:50 PM
http://www.techsonian.com/traders-recap-federal-national-mortgage-association-otcbbfnma-nestle-sa-reg-shs-ser-b-spons-adr-otcmktsnsrgy-komatsu-ltd-adr-otcmktskmtuy-julius-baer-group-otcmktsjbaxy/1264306/
This guy is very funny! Hopefully reach .85 to sell the house and bet all on FnF.
FnF forever! More solid busine$$$$
American Bancshares Granted FNMA Seller/Servicer Approval
http://www.prweb.com/releases/2013/11/prweb11292459.htm