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All of reform requirement of the Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (Safety and Soundness Act), as amended by the Housing and Economic Recovery Act of 2008 (HERA) had been met , therefore it's fhfa' s statutory responsibilities under hera to exit conservatorship .
Why delay and delay?? Why ?
Gses is ready to exit conservatorship at any moment.
Read this phrase carefully quote "FHFA submit an annual report to Congress describing the actions undertaken by FHFA to carry out its statutory
responsibilities,"
This Report meets the requirement of the Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (Safety and Soundness Act), as amended by the Housing and Economic Recovery Act of 2008 (HERA),
that FHFA submit an annual report to Congress describing the actions undertaken by FHFA to carry out its statutory
responsibilities, including a description of the financial safety and soundness of the entities it regulates. The Report
also meets FHFA’s obligation under Section 1305 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act to report to Congress on the Agency’s plans to “continue to support and maintain the nation’s vital housing
industry, while at the same time guaranteeing that the American taxpayer will not suffer unnecessary losses.”
In its report to Congress, FHFA again asks for the authority now to:
• examine third party servicers; and
• adjust statutory capital definitions, a move that would end the need for complex supplemental
capital requirements.
The agency also weighs in on what needs to come when the GSEs exit conservatorship.
It wants:
• changes to the GSEs’ charter acts to address Treasury’s different role;
• new business models as utilities;
• creation of reserves funded by GSE guarantee fees as an extra layer of loss absorption.
It applies to every one in Congress or any other representative. I remember so well.
This is not a joke!
If you still remember!
Any members of Congress or any other government are not allowed to buy Fannie Mae and Freddie.
That's an order from Lamberth
Any members of Congress or any other government are not allowed to buy Fannie Mae and Freddie.
That's an order from Lamberth
After Dec 31 , it will become 2024.
Calabria said " conservatorship will be exited at the end of my term 2024.
It's in line with Sandra's capital rule.
This is not my answer. Because nobody knows exactly for sure.
Exit conservatorship and IPO for utility model for css.
If it will happen, how will it happen?
Exit conservatorship first or all at once in the same time
Will Santa Claus come to Fannie and Freddie to bring joy for New Year?
Facing Litigation While Selling Your Business or exit conservatorship by any administration ?
It's impossible
https://www.benjaminrossgroup.com/blog/2021/06/02/facing-litigation-while-selling-your-business
To respond to federal jury verdicts, fhfa must do these two:
1. Allocation plan
2. These are to do lists for Christmas that Sandra already asked congress for an authority.
In its report to Congress, FHFA again asks for the authority now to:
• examine third party servicers; and
• adjust statutory capital definitions, a move that would end the need for complex supplemental
capital requirements.
The agency also weighs in on what needs to come when the GSEs exit conservatorship.
It wants:
• changes to the GSEs’ charter acts to address Treasury’s different role;
• new business models as utilities;
• creation of reserves funded by GSE guarantee fees as an extra layer of loss absorption.
These are to do lists for Christmas that Sandra already asked congress for an authority.
In its report to Congress, FHFA again asks for the authority now to:
• examine third party servicers; and
• adjust statutory capital definitions, a move that would end the need for complex supplemental
capital requirements.
The agency also weighs in on what needs to come when the GSEs exit conservatorship.
It wants:
• changes to the GSEs’ charter acts to address Treasury’s different role;
• new business models as utilities;
• creation of reserves funded by GSE guarantee fees as an extra layer of loss absorption.
The lists numbers three and four will occur at the time of exiting the conservatorship.
To exit conservatorship!!
All the lists on bottom were done and finished.
Fannie and Freddie are now ready to exit conservatorship.
Summary
Today’s report to Congress is FHFA’s first foray into expressing a statutory opinion since Sandra
Thompson took over, a change doubtless due to her newly confirmed status and the will to tackle hard
questions in which Congress has only nominal interest in the absence of another crisis. Sticking with
Mel Watt, Thompson wants the GSEs turned into utilities. Adding a fillip from Mark Calabria, she wants
more than two of them. A note of her own also recommends a new reserve.
Impact
In its report to Congress, FHFA again asks for the authority now to:
• examine third party servicers; and
• adjust statutory capital definitions, a move that would end the need for complex supplemental
capital requirements.
The agency also weighs in on what needs to come when the GSEs exit conservatorship. It wants:
• changes to the GSEs’ charter acts to address Treasury’s different role;
• new business models as utilities;
• creation of reserves funded by GSE guarantee fees as an extra layer of loss absorption.
Appealing is now not allowed. That's an order from Lamberth.
In gses conservatorship, there are three different defendants or evils.
For shareholders, it's corporations' responsibility to not violate the breach of contracts.....
For federal jury verdicts, these three stooges must take the correct action to reply to the verdict from federal jury.
With the federal jury verdicts , the action(s) must be corrected and period
In the pool table, the ball of corporations will collide with the ball of fhfa causing both balls of corporations and ball of fhfa to fall .
Yes correct. It's the corporations ' responsibility.
Corporations must take a correct action to fix the violation.
Right?
FHFA breached the implied terms of their contracts with shareholders.
How did fhfa breach....... ?
FHFA breached the implied terms of their contracts with shareholders, when FHFA changed the terms of a stock purchase agreement to transfer the mortgage financing institutions’ profits to the U.S. treasury.
How can action (s) be taken to correct it ?
1. Settlements
2. Spspa --- terms of a stock purchase agreement must be reversed, otherwise if spspa is still remains as it is right now, then fhfa is still violating the breach of contracts.
The short answer is that spspa must be reversed in order to correct the action.
They want to stabilize homelessness due to eviction by hedge funds and low income housing market.
Agree or not !
Fannie and Freddie are now trading in 50% out of conservatorship.
To completely out of conservatorship 100% then Fannie and Freddie must be relisted to NYSE.
For example!!
This q , company lost a lot
But future guidance is good.
Investors will buy for the future.
Biden is suck
Stocks markets are going worse.
But future Republican candidate will change every policies.
So investors will rush to buy low for the future administration policy
Don't pay much attention to analysts.
In stock markets , every thing is always unpredictable,
Pps will be above $1.0 based on :
1. Good news from court
2. In history, and during elections stocks markets are always green
Pps will reach above $1.0 in this month of December.
Action had already spoken louder than words.
In financial crisis in 08 , Republican bailed out high class of tbtf.
As of right now, commercial real estate loans own by banks are still in crisis. Democrats instead bail out low income such as stimulus packages ,
Example
Do you think that any future Republican candidate will release Fannie and Freddie on first year of office?
Of course it's not.
They need to spend more years to play around just like the ping pong players back and forth.
There are many ways of reforms.
Republican will tend to reform in favor of middle and high class of income.
Democrats will tend to reform in favor of low income.
The question is!!
Will Biden allow the future Republican candidate to reform for four years to favor middle and high class?
Everything has the rights.
The corporations have the rights under the law of capital structure to structure for safety and soundness.
The court of any levels must respect the rights of corporations under the law of capital structure in financial systems
Question !
Is senior out of the picture right now?
Can Fannie and Freddie exit conservatorship before spspa class ending ?
Senior and junior cost enterprises billions and billions. And when enterprises don't have enough money due to financial crisis.then the capital structure will give the enterprises the power to offload both senior and junior in order for enterprises to survive.
It's a 50/50 chance. according to the capital structure during financial crisis, usually they convert to common stocks.
However ,since all jps got settlement at the price when they bought during conservatorship, they would simply terminate all jps contracts of conservatorship. Otherwise the plane can not fly again
Somehow, all jps could be wiped out at the time of the settlement.
No income no tax, true.
Tax season swap or a security swap
Quote " if you held the relevant securities as of December 7, 2021. You are a member of the applicable class".
Therefore the seller might sell to buy common stocks
From red to green back and forth, it never happens like this in 15 years.
Are we ready for an exit on December 30th ?
Excellent, thanks