removed FNMA
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****BREAKING*****
The eight claim the Protecting American Taxpayers and Homeowners Act would jeopardize the 30-year fixed-rate mortgage and endanger 17 million U.S. jobs.
Trade Groups Dismiss PATH Act in New Letter; Big Lenders Absent
By Paul Muolo
pmuolo@imfpubs.com
Eight industry trade groups – including the National Association of Realtors and National Association of Home Builders – sent a letter to members of Congress late Wednesday, dismissing signature GSE reform legislation introduced by House Financial Services Committee chairman Jeb Hensarling, R-TX. The eight claim the Protecting American Taxpayers and Homeowners Act would jeopardize the 30-year fixed-rate mortgage and endanger 17 million U.S. jobs.
The letter is noteworthy not only for its dismissal of Hensarling’s PATH Act, but for the absence of two important trade groups from the correspondence: the Mortgage Bankers Association and the American Bankers Association.
The only mortgage trade group signing onto the letter was the Community Mortgage Lenders of America, which represents smaller originators and servicers. The Independent Community Bankers of America and the Financial Services Roundtable also were absent.
MBA President and CEO Dave Stevens told Inside Mortgage Finance that his group did not sign the letter because “it’s not a productive approach at this time.” Stevens said MBA “has been quite active with the chairman’s office” on the issue of GSE and housing reform and prefers a broader approach than just a one-page letter.
The letter was sent on the eve of a hearing held by the Senate Banking Committee on housing finance reform, which presumably will entail structural changes planned for Fannie Mae and Freddie Mac. The Hensarling bill calls for the eventual elimination of the GSEs and no explicit government guarantyon mortgages. For more on the story, see this week’s edition of Inside The GSEs.
Other areas of interest: Originations, Servicing, Secondary/MBS, Regulatory, Fannie, Freddie, GSEs
Every time the stock goes down, people say this is the starting of the next run.
Is not it funny? LOL.
Does any one know what is %short volume today?
*****BREAKING************
Maxine Waters to Counter Hensarling’s PATH Act With Her Own GSE Bill
By Charles Wisniowski
cwisniowski@imfpubs.com
The top Democrat on the House Financial Services Committee is drafting her own GSE reform bill as an alternative to Republican legislation that was rammed through committee earlier this summer only to go nowhere on the House floor.
Rep. Maxine Waters, D-CA, noted during a speech at a National Association of Federal Credit Unions conference this week that she is seeking industry input for her bill that would be “quite different” from the Protecting American Taxpayers and Homeowners Act, sponsored by Committee Chairman Jeb Hensarling, R-TX.
Waters said her legislation would seek an “alternative approach” in keeping with a set of principles House Democrats issued in July. In addition to preserving the 30-year fixed-rate mortgage, Democrats aim to establish a system with an explicit government guaranty paid for by the private sector while maintaining certain regulations that the House GOP wants to eliminate.
Hensarling has been working to gather the necessary 218 House votes required for passage since he managed to muscle his PATH Act through committee largely along party lines in July. However, House Majority Leader Eric Cantor, R-VA, conspicuously omitted any mention of PATH in the memo sent out to House GOP members late last week detailing the party’s legislative agenda through October.
For more on the GSE legislative outlook, see the Friday edition of Inside The GSEs.
Good to see u.
Who is this Secretary??
Certainly he looks like a rigid @$$
Long live Fannie and Freddie
Nice post.
No one in this board knows that certainly.
Very good question..
Why???
Why?????
Why??????
Thanks a lot, Baboon. Member mark for you.
Long live FnF
Are you John Reiniers, the writer of that Jack @$$ article??????
Net Worth
Our net worth increased to $13.2 billion as of June 30, 2013 from
$7.2 billion as of December 31, 2012, primarily due to our comprehensive income of $69.6 billion, partially offset by our payments to Treasury of $63.6 billion in senior preferred stock
dividends during the first half of 2013.
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q22013.pdf
Common share value = $13.2 billion/1.18 billion OS = $11
FNMA pps worth $11 as of June 2013. Period.
I have lost 50% of my capital in it. Still holding 20K shares and will hold them.
Long live FnF
F!@#K Hensarling Bill.
It suggests abolishing fixed 30 year mortgage rate. There will be no fixed 30 year mortgage and it will be replaced by variable rate mortgage.
It will be DOA. Gonna never hit the senate floor.
Long live FnF.
"Third, everyone on here Bi$&@ing about whose d$&k is bigger is REALLY ANNOYING!!!! PLEASE STICK TO TALKING ABOUT THE STOCK!!!!!"
LOL...............LOL...LOL
Could not agree more.
Long live FnF
Long live America
Old BS blog post. Garbage.
Long live FnF
Excellent post. Book marked it.
Long live FnF
Long live America.
Nothing belongs to Obama. They belong to shareholders. In Government's website it is clearly written that Fannie and Freddie are private entities. If shareholders dont have any provision to their profit, then why are they trading in stock market?
Long live FnF
Me too....
Long Live FnF
Very good observation..
This was my comment in reply to that stupid article in SA. I dont know if they will keep it or not.
I have been hearing this BS since I started my trading. Please stop this nonsense. Come up with something new and good information that is good for everyone. GSEs are considered the heart of the US housing industry. Fannie was created after the great depression in 1930 to rescue the middle class people offering them to own homes. Before 1938 only 40% of Americans could afford homes. Now 66% of them can afford homes. This is only possible for GSEs. President calls for winding down of GSEs. This means the restructure, reformation of them, not eliminate them. So please do not try to misinterpret his comments. The $5.2 trillion mortgage back securities can be wind down to $3 trillions by putting more private involvement to the market and so reducing the portfolio of the GSEs. This is what the President intends to do. Get rid of $5.2 trillion asset is not possible.
They insure the 30 years fixed mortgage rate to us so that we can buy home. Without their guarantees, who will provide 30 years fixed mortgage? The house republican bill suggests abolishing 30 years fixed mortgage. So it will not pass. The bipartican bill is fundamentally flawed and might ruin the American people according to many analyst. In my opinion, both of them will be DOA (dead on arrival).
Do you really believe that GSEs will be sending billions of dollars to the treasury and still remain unpaid of their debt? Are we in barbarian era? Are we living in communism? The first stance of our constitution is 'We the people.' Dont your common sense says that taking all the profit from the GSEs is the violation of the fundamental right of people? Yes, it is the violation of fifth amendment. Atleast 5 lawsuits have been filed against the US government regarding this issue. And atleast 100 other lawsuits will be filed as soon as Fannie and Freddie will become net zero.
You said lawsuit is a lengthy process and by the time GSEs will be wind down. Do you know the time frame and lenght to pass and enact a bill? How many new bills the congress have passed in recent years? Please do some home work before you write in public articles.
Top hedge funds and mutual funds are investing in both preferred and common shares of GSEs. Fairholms Capital, Perry Capital and Paulsons invested billions of dollar in GSEs. This guys are not dumb, note that. Fairholms declared that they may increase their position in the GSEs shares which is another new $800 million bet in Fannie and Freddie. Government can easily get more than the original $188 billions it gave to GSEs by selling its preferred shares. Lots of other hedge funds will buy it.
Releasing GSEs after reformation is the best option to the Government. At that case, all will be beneficial. Treasury will get at least 100% return to its investment, affordability of homes will not impair for taxpayers, shareholders will be benefited. Every one will be benefited.
"There will be no value in shares of either Fannie Mae or Freddie Mac." .....This is greatest lie of the 21st century.
Thank you for your article.
Just wait. It must see $30 by three years.
Who is paying?
You?????????????
Because the last run hit $5.44. At that time Fannie's repayment to the treasury was less than $10B from now..Make sense?
FNMA does not care technicals..Even it does not care the fundamentals either, since after reporting $10B profit, it went through 4 consecutive red days..
This is a unique piece with unique movement, IMO.
Only longs will be rewarded.
Go FnF
Ooou OK..Now I get that.
Thanks Xerik to share that valuable info.
Good luck with FNMA trading.
Yes Sir!!!
Accumulated avg. 30000 FNMA/FMCC @1.5 avg price so far...Although I am on margin and could get a margin call anytime...I dont care..
All patient Longs will be rewarded.
Go FnF
Go Fairholme Capital
Game changer.
How could it affect on pps?
The fund opens at Aug 19...what does it mean?
OBAMA is also loading with Sen. Corker!!!!
WRONG.
Gov sux....no doubt
Man, I loaded on margin. If we see another red day tomorrow, I certainly will face margin call. Hope it goes green tomorrow. :)
I am clueless why this is going down today!
Sorry Guys, It came to my email inbox. So, could not post the link.
Long live FnF
Rep. Hensarling Defends PATH Act, Says 30-Year FRM Will Survive
By Charles Wisniowski
cwisniowski@imfpubs.com
The Chairman of the House Financial Services Committee says Democrats are dead wrong if they think his GSE reform bill, the PATH Act, will kill the 30-year fixed-rate mortgage.
Speaking Tuesday before a forum sponsored by the Bipartisan Policy Center in Dallas, Rep. Jeb Hensarling, R-TX, detailed how the measure, H.R. 2767, the Protecting American Taxpayers and Homeowners Act, actually sustains and protects the 30-year FRM while also allowing for more consumer choices so homebuyers can choose the mortgage that’s right for them.
“Home buyers should have the opportunity to acquire a 30-year fixed-rate mortgage,” he said. “However, Washington should not steer people into it but instead ensure that they have informed choices about an array of mortgage products.”
The PATH Act cleared committee last month along a strict party-line vote with House Democrats painting the GOP measure as an “ideological extreme and dangerous bill.” Hensarling noted that the PATH Act specifically states that the FHA “shall provide” for the availability of a 30-year fixed-rate mortgage.
Other areas of interest: Originations, Servicing, Secondary/MBS, Regulatory, Fannie, Freddie, GSEs