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Yes I agree! Last week Dow climbed some 400 points on what?? a 0.2 % drop in mortgage rate! Not much to get excited about I feel this is the last big rally push to get as much out of the market then we will see short interests shorting against the market just in time for the Nov election and hand the next admin the crap so they can blame it on them whoever that might be.
Your 100% right there! The GSE trade for me is a wild card play! I’ve said that from day one many times. It’s like that GSE ich you wanna scratch!! Hopefull with todays discussion we get some where with a release plan. I do want to talk about why the Gov has dragged there feet since 2016. What are they waitingn for??
That’s why I brought up the
Capital threshold and warrants expire date and the SPSA
Actually with current standing has anyone done a cost basis projection on retained earnings v capital threshold level to when the GSE will meet that ??? We should start there!
Hey I’m NOT claiming I know anything or everything! I’m thankful for all your input and information legal and non legal. I agree with the $200 billion bailout not being legal by congress but they did it anyway.!!!! NO ONE STOPPED THEM. That’s my whole point about todays question and yesterdays, no one seems to answer!
What options does the Gov have, can do, wants to do but is restricted by law or if a suit was filed what grounds would they win it.
I’m trying to make a clear point ! What can the Gov get away with if they want to release the GSE’s legal or not legal because you know if they can get away with it they will !!
Ok all good point of views there!
Then what’s the use of keeping the SPSA if they won’t BK the companies ?
Actually if I read this right and I’m no lawyer under HERA ( Preserve and conserve) So legally I don’t think they would be allow to BK the GSE's? Even if they ran up the SPSA as not paid off until $191 billion and resumed the NWS. That’s another question now since Lambert’s trail, is the NWS even allow to re-start now the jury found it to be unjust and unfair dealings.
So where does it leave the GSE now?
Retaining earnings for release or retaining earnings to a point the NWS is turning back on and stay under conservatorship. What happens when the warrants expire will they extend them and keep the NWS going? WHO KNOWS…..
All good information indeed but you missed my 2 Questions !
There’s 2 ways this is going to go! Please refer to my 1st post:
what’s going to happen first ?
1, The warrants expire before capital threshold is met ?
OR
2, Fannie & Freddie meet there capital threshold before the warrants expire?
What’s the Government plan then?
Today’s Questions are?
what’s going to happen first ?
1, The warrants expire before capital threshold is met ?
OR
2, Fannie & Freddie meet there capital threshold before the warrants expire?
What’s the Government plan then?
If the Government thinks once paid back they can cash in the warrants like it did to Citi bank. Would that mean the SPSA would be written down to $0. Gov gets $120 form the sale of the warrants and Fannie & Freddie released ?
Or extend the warrants and Fannie & Freddie meet there capital threshold start paying dividends back to Treasury? That would mean the SPSA and warrants are not paid off and still under conservatorship!
IS THE GOVERNMENT WAITING FOR THE SPSA TO REACH $191 billion??? OR THE COMPANIES CAPITAL THRESHOLD MEETS $191 BILLION?
This is garbage if they want the citizens to believe the release of the GSE is for the best interests of tax payers
https://www.cbo.gov/publication/56511
Government double dipping again!
https://home.treasury.gov/data/troubled-asset-relief-program
https://projects.propublica.org/bailout/
Treasury acquired (mostly stock in Citigroup); and $9.63 billion through stock warrants which Treasury received as part of most of the investments. When companies pay back the TARP investment, the warrants are either sold back to the company or auctioned off.
Fannie and Freddie
The total amount invested in Fannie and Freddie so far is $191 Billion.
The companies have not repaid any of the principal, but the companies have been paying dividends, which have so far amounted to $301 Billion.
On Sep. 7, 2008, Fannie and Freddie were essentially nationalized: placed under the conservatorship of the Federal Housing Finance Agency. Under the terms of the rescue, the Treasury has invested billions to cover the companies' losses.
Initially, Treasury Secretary Hank Paulson put a ceiling of $100 billion for investments in each company. In February of 2009, Tim Geithner raised it to $200 billion. In December of 2009, the Treasury removed any cap for the aid. The money was authorized by the Housing and Economic Recovery Act of 2008, passed in July, 2008.
KEY WORD NATIONALIZED! Where’s the 5th amendment ?? Paid Dividends under conservatorship ??
THE SHADY GOVERNMENT!!!!!!!!!!
Name State Date Entered Disbursed by PSI
Freddie Mac Va. Nov. 29, 2008 $71,648,000,000
Fannie Mae D.C. Mar. 31, 2009 $119,836,000,000
Agreed !
Shady dodgy self serving Government with no respect for its citizens!
If and when it comes to release I hope they be nice to ALL shareholders. I’m not holding my breath!
The context of my posts subject today was:
Options on how the Government might release and what options they might take.
There’s 3
Cash in the warrants
Cash in the SPSA by BK
Or release right down SPSA and cancel the warrants .
That’s all I want to discuss! Happy to discuss other topics regarding others point of views.
The subject is ( The Government’s actions)
I know Colin’s brought the wrong case in front of SCOTUS for takings. I have gone around and around today . People keep changing the subject of my posts rather agree they could take many options .
My posts today again were about the Governments self dealing for its best interests and disregard for shareholders.
I thank you for your knowledge and posts and agree a lot of your posts but let’s not go off in another discussion or direction other than all I stated was today . I’ve kept on topic and everyone else keeps changing the subject.( the Governments shady actions towards Fannie and Freddie and shareholders.
and how if they release them on what terms.
Anything else I’ve said can be another topic, I’m fine discussing and agreeing with everyone.
End of topic I’m done with this one !
Lambert’s case is different to shares holders claims for illegal takings under the 5th Amendment and taking of private property.
Lamberts case was about the damages of what the government did by introducing the NWS is it was unfair dealing and unjust. Damages only for that case of the NWS.
Fact 1 : A jury of common law abiding citizens found the Government acted in bad faith. So why didn’t SCOTUS ???
Fact : 2 Because SCOTUS under HERA the government was acting within the boundaries of HERA.
Now back on topic!!! ( The actions of the Government)
The actions of the Government on Sept 8th 2008 ! SCOTUS opinion stats what I said! They can do whatever they want as conservator. ( Within the law)
So to lay it out plan and simple for people to my very 1st post today is .
When and if the Government decides to release the GSE it can do whatever it wants (within the law) of HERA which gives the Government a wide range of options!!
Guessing what those options might be is easy. But guessing how our Government releases them no one knows!
But I’ve stated it plenty of times we are dealing with a government that self deals in its best interest!
I would hope so but I’m no lawyer and SCOTUS opinion says under conservatorship the FHFA can do whatever it likes ! That ruling killed shareholders claims for damages and a fair chance of release.
I’m
Not offering anything but options the Gov could possibly take! Anyone that does not consider all options is dreaming !
I own common and JPS I’ve said this many times and said many times I hope the Gov cancels the warrants and writes down the SPSA. If anyone thinks that’s the only option then they are dreaming !
Welcome to the real world of a Corrupt Government!
Yes they can do that to! Sell the warrants back to the companies or to someone else.
I’m not saying what I think, I’m making it clear with our Shady Government anything is possible.
Yer it does for me too! That’s the Government’s option like it or not!
You and I and all the shareholders bank CEO and mortgage experts know the companies are in good shape and nothing close to BK.
BUT, like I said the Government does some shady shxt so anything is possible with a stroke of a pen!
Case in point : Does Sept 8th 2008 IT HAPPENED and what were the odds of that happening???
One way to look at it is the Gov can go both ways or one way or many ways!!
1, Cash in the warrants cancel the SPSA
2, BK both companies and take the SPSA forget the warrants.
3, Cash in the warrants & SPSA by BK the companies then make a new company and list it on a major exchange and IPO
The Governments behavior leads me to 3. I hope not but this is the greedy self dealing Government we are talking about
I’ve read that also you are correct!
The warrants are like $0.00001 or something stupid small. But again the Gov has to purchase the shares at that price! They own on paper a contract to BUY at that price!!
If they don’t put the GSE into BK and make a new company IPO and re-list onto a major exchange, then the warrants expire or they expire in 2028 which ever comes first !
So basically your saying that the Government has stolen private property for its own gain and dreamed up HERA to swindle shareholders and SCOTUS is in on it !
Sounds about right for this Banana republic
75k great buy under a dollar!!! Your 500,000 must be getting close! Once she hits $3.50 + I’m selling my Fannie commons to buy more land east county San Diego. Prices are starting to move again!!
Yes they do, I agree with you ! Freddie even said they had funds set aside for a possible ligation lose mid year last year!
Even though the NWS has stopped on paper the PSA is increasing for FREE! The Governments work around is for the FHFA to charge Fannie and Freddie a higher fee in 2024 to pay for there pet projects!
What’s stopping the FHFA and any administration from increasing it to any amount they want? That’s the NWS in the real world. Status Quo keep it as is and we will bleed them dry!!
That was so 2023! We are in 2024 now mate try to keep up! $1:00 + year !
Anything is possible with this clown show of an Administration!
There has not been any movement on GSE reform since taking office. Sandra hasn’t done nothing but collect a paycheck. It amazes me how disgraceful and dysfunctional the Government is! They are for the people so why after 15 years we are still at this point and the amount of money they have stolen from shareholders!
SM better be apart of the Trump administration if Trump gets re-elected with even the slightest remote chance of GSE reform.
But I take this opportunity to keep building my common position every month. At these prices it’s a steel to make quick money on a bounce back to $3 +
If there was ( shock horror) any reform between now and Nov 2024 I’d be surprised! It’s election year Biden/ Obama had his chance. They were to busy finishing up what they started on his 2nd term to worry about GSE reform. Why would any administration leave the possibility of $120 billion on the table for the next administration when they could have done good work with more affordable housing and an election carrot for BIDENS team??? Seems very strange.
6 Months? Gezz thats a long time, and then kick the can down the road for another 6 months on appeals etc delays etc. No wonder the final judgement is post 4 months and counting both sides can keep kicking down the road for as long as they want. There’s no reason delaying final judgement what business is it of the federal Gov what happens to the funds and how they are located. Shouldn’t that been in the class action brief for class holders to read ???
Update on GSE’s court Cases
Thanks Familyman
Updated for January 2024$FNMAS $FMCKJ $FNMA $FMCC@FannieMae @FreddieMac @FHFA @USTreasury pic.twitter.com/06YcxB0PPB
— familymang (@familymang1) January 4, 2024
AHHHHHHH The Globalist plan to control all world housing! So there’s the reason for the stickup of Fannie and Freddie back in 2008. Funny how Blackrock was formed in 2008, Bitcoin was formed in 2008, market crash happened in 2008, Fannie and Freddie conservatorship in 2008!!!
It was a stick up to bail out Wall Street banks friends of Bush and others and made Fannie and Freddy pull the losses on there books! Then Obama sore they were about to make huge returns in 2013 and onwards so he introduced the NWS to pay for Obamacare!
Now the Wall-street banks are making hand over first up until 2020 then interest rates started climbing banks got stuck with all these low interest loans and have cut back on home loans by some 87% leaving the only to companies left in town the GSE’s owner by the Government!!!
Talk about Nationalism of two private held companies the Government didn’t pay for !!!
Sounds about right !! BUT will the Federalists let them released !!! You know Black rock is buying up as many homes as possible! There UN & WEF !
But this is 2024 an election year and I’m pretty sure both sides will want to promise all the lucky charms!!!
What does this mean for Fannie and Freddie? Could be more of the same or we could get released but who knows !!
Good article , thanks !
Fannie Mae Earnings Primer: Value Investors Stay Away
Dec. 31, 2023 11:51 PM ETFederal National Mortgage Association (FNMA) Stock10 Comments
Gary J. Gordon profile picture
Gary J. Gordon
2.76K Followers
Summary
Fannie Mae is currently selling at $1.07 with a $6 billion market cap, despite earning around $17 billion this year.
Fannie Mae operates in the home mortgage credit guarantee, multifamily housing credit guarantee, and mortgage and securities investing businesses.
The future of Fannie Mae's legal status and ownership remains uncertain, making it difficult to accurately value the stock.
Fannie Mae To Pay Some $400 Million In Fines To SEC
Alex Wong
What to do with Fannie Mae (OTCQB:FNMA) stock? At present, FNMA is selling at $1.07, or a $6 billion market cap. Yet the company is on track to earn something like $17 billion this year. The problem of course is that a federal government bailout of Fannie Mae in 2008 transferred the great bulk of the benefits of ownership from the equity owners and to the government. And despite a huge earnings recovery by Fannie and lots of legal and political wrangling, not much has changed to today.
Discussing how Fannie’s legal status might change is pretty much pure speculation. I’ll briefly add my two cents below. Rather, overlooked are discussions of how Fannie Mae performs as a business. That’s the purpose of this piece. I have some expertise here, having covered Fannie Mae as a stock analyst for 20 years, up until its seizure.
The Fannie Mae basics
Fannie Mae is a government-sponsored enterprise (GSE). The Federal National Mortgage Association Charter Act requires Fannie Mae to:
“Provide ongoing assistance to the secondary market for residential mortgages by increasing the liquidity of mortgage investments… “The GSE Act requires that we serve very low-, low-, and moderate-income families.” (Fannie Mae 2022 annual report)
The main benefit of the GSE charter for investors is that Fannie Mae securities – both its mortgage-backed securities (MBS) and its debt – have the implied guarantee of the U.S. government. As a result, Fannie Mae’s securities yields are well below private sector competitors. For example, Fannie Mae mortgages were nearly 20 bp cheaper on average than jumbo mortgages over the past five years. And its debt typically trades at 35 bp over similar-maturity Treasuries, while even AAA corporates averaged 120 bp over Treasuries for the past five years. These lower yields are huge operating advantages.
Fannie Mae meets its charter requirements by operating three businesses:
1. Home mortgage credit guarantees.
2. Multifamily housing credit guarantees.
3. Mortgage and securities investing.
The home mortgage credit guarantee business
An easy way to understand this business is to track a home mortgage’s chronology.
A mortgage lender originates a fixed rate mortgage loan, underwriting it to Fannie Mae’s detailed lending standards.
If the borrower doesn’t put down at least a 20% downpayment, he/she is required to buy private mortgage insurance (PMI). The insurance protects Fannie Mae – if the borrower defaults, the PMI company pays Fannie a claim equal to about 25% of the mortgage size.
Because banks and mortgage bankers can’t safely hold fixed rate mortgages due to their significant interest rate risk (see First Republic Bank’s recent failure), they look to sell them to investors.
After pooling says $100 million of fixed rate mortgages, the lender requests a credit guaranty on the pool from Fannie Mae. The guaranteed loan pool is now a Fannie Mae mortgage-backed security (MBS). Fannie takes all of the default risk of these loans unless the lender did not correctly follow Fannie Mae’s underwriting guidelines, in which case the lender must repurchase the loan.
Fannie Mae then reinsures some (currently 35%) of the mortgages with investors and others to reduce its credit risk.
As of November 30, 2023, Fannie Mae insured $4.1 trillion of mortgages. It has two primary competitors in the guarantee business. One is peer GSE Freddie Mac ($3.4 trillion insured). The other is Ginnie Mae, a federal government agency, with a little over $2 trillion insured. Together they insure about 75% of all U.S. mortgage debt.
Home mortgage credit insurance financials:
Guarantee fees average 47 bp at present.
Fannie passes 10 bp of the fee along to the federal government as part of the conservatorship deal.
Reinsurance costs Fannie 3½ bp.
Operating expenses cost another 7 bp or so.
Loan charge-offs due to home foreclosures are currently about 2 bp.
That leaves about 25 bp of the 47 bp of revenues as profit at present or about $8 billion in after-tax profits.
The multifamily housing credit insurance business.
This business is identical to Fannie Mae’s home mortgage business, with the obvious difference that Fannie is guaranteeing business, not consumer loans; an apartment building owner is the borrower. The economics are also similar. At year-end 2023 Fannie Mae insured about $470 billion of multifamily loans and earned about $2.5 billion after-tax.
The mortgage and securities investment business.
At one time, earning interest income from owning mortgages and securities was a major business for Fannie Mae. For example, in 2005, Fannie owned over $800 billion in mortgages and earned half of its income from this business. Fannie Mae did well in this business because of its super-cheap debt.
But Fannie’s regulator decided that mortgage investing was too risky for taxpayers, and Fannie has shrunk its mortgage assets over many years, to only $50 billion today. It also holds $100-150 billion of short-term high-quality investment securities. These assets give Fannie the ability, if the country’s debt markets seize up, to sell them and buy mortgage assets when other investors won’t. Fannie therefore can fulfill its mission of supporting the housing market by “increasing the liquidity of mortgage investments”.
This table shows a recent history of Fannie’s portfolio interest income, plus a history of the main two drivers of that income:
Investment portfolio statistics
Fannie Mae financial reports, FRED
Sources: Fannie Mae financial reports, FRED (fed funds)
Fannie’s short-term securities are financed primarily by long-term fixed rate debt and by equity. The result of this funding structure is that Fannie’s interest income rises when short-term interest rates rise and falls when interest rates decline. And mortgage loans have higher yields than securities, so their dramatic decline has caused a downward trend in interest income.
Fannie Mae’s earnings drivers
Now that we know what Fannie Mae does for a living, we can identify the factors that drive its earnings. There are four:
The Fannie Mae MBS growth rate
Home mortgage default costs
The rate of decline of home mortgages owned
The fed funds rate
Let’s forecast them.
Forecast: The Fannie Mae MBS growth rate
Here is a recent history of Fannie’s MBS portfolio growth, compared to U.S. home mortgage debt growth:
Home mortgage and Fannie Mae MBS growth rates
Fannie Mae, Federal Reserve
Sources: Fannie Mae, the Federal Reserve
The chart shows that Fannie Mae’s MBS growth is a function of (A) U.S. mortgage debt growth, and (B) Fannie’s market share.
National mortgage debt growth averaged 2½% a year over this time period but was obviously pretty volatile. The key long-term driver of home mortgage debt growth should be household incomes, which grew by 4½%. Going forward, I expect mortgage debt growth to average about 4%.
Fannie Mae’s market share grew for many years after the ’08 Great Financial Crisis but dipped in recent years. The early ‘00s decade housing bubble was fueled by private (not GSE or Ginnie Mae) credit, in particular risky subprime and other non-prime loans. As private lenders stopped making those loans, and those paid down or defaulted, Fannie and its peers steadily took share. Fannie’s share rose from 25% in ’08 to a peak of 33% in early ’21. Since then, the squeeze on housing affordability (high home prices, high mortgage rates) caused non-GSE products like adjustable-rate loans to grow more popular, lowering Fannie’s market share a bit.
Net/net, I expect Fannie Mae’s MBS credit guarantee business to trend up from 1% growth at present to 4% long-term.
Forecast: Home mortgage default costs
This is the big one. As primarily a home mortgage credit guarantor, credit losses incurred are the big swing item for Fannie’s earnings.
I focus on cash default costs, not accounting adjustments. Before discussing the credit outlook, a very quick accounting note. Fannie Mae recognizes credit losses in its income statement in two different ways:
Cash losses from mortgage defaults as they occur.
Accounting losses or gains as Fannie Mae (and any other bearer of lending credit risk) adjusts a loan loss reserve to recognize today what management estimates might be future cash losses. These are non-cash adjustments that in practice create huge swings in reported earnings. For example, in 2008, Fannie Mae took a $21 billion hit to reported earnings to recognize future expected losses. And in 2014 Fannie reversed $7 billion of those reserves, adding to reported earnings.
I ignore the non-cash loss reserve additions and subtractions. Here is a history of Fannie’s cash loan charge-offs:
Loan charge-off history
Fannie Mae financial reports
Source: Fannie Mae financial reports
Why the surge in charge-offs 15 years ago, and why the minimal losses today? Two factors – (A) Loan underwriting standards, and (B) Housing market supply and demand.
Loan underwriting standards. Here is a history of the availability of mortgage credit:
Mortgage lending standard index history
Mortgage Bankers Association
Source: Mortgage Bankers Association
You can clearly see the loosening of home mortgage loan lending standards in the early ‘00s, and the tightening of those standards by 2009 that has persisted to this day.
Fannie Mae in large part followed the same path, as this comparison of some key lending standards between ’06 and today highlights:
Fannie Mae loan quality statistics, '06 and today
Fannie Mae financial reports
Source: Fannie Mae financial reports
Housing supply/demand. The “law” of supply and demand says that an excess of supply causes lower prices, while a shortage of supply causes higher prices. This law works for housing. Housing supply and demand are well measured by the number of vacant housing units (single-family homes and apartments). The historic average vacancy rate is 3.5%. Here is a difference in the excess or shortage of housing units versus that average:
Housing excess/shortage history
The Census Bureau
Source: The Census Bureau
The chart clearly shows the excess housing that helped drive down home prices during ’07-’11, and the housing shortage that helped cause soaring home prices over the past few years.
Net/net, the loan standard and housing vacancy data show that Fannie Mae’s surge in loan charge-offs after ’07 was the result of a “Perfect Storm” – very risky lending standards meeting over-built housing. Today is “The Perfect Calm” – very conservative lending standards meeting under-built housing. Meaning the great likelihood of very low charge-offs for the foreseeable future.
Forecasts: The rate of decline of home mortgages owned and the fed funds rate.
As I discussed above, these are the two drivers of Fannie Mae’s interest income. I will make this quick. First, my guess is that Fannie Mae is near the end of its two-decade shrinkage of its home mortgage portfolio. The company should want to retain the ability to hold mortgages that aren’t easily securitized, but whose terms help it meet its mission of helping lower income households achieve homeownership.
Second, we all know the fed funds story. The Federal Reserve has stated that the next move for the fed funds rate is down.
Net/net, Fannie Mae’s interest income should drift lower for the next few years.
My thoughts on Fannie Mae’s ownership issues.
I hold four views:
1. Fannie Mae will retain its GSE status. I say that because doing so benefits three very large political lobbies. One is homeowners, who get cheaper mortgages. A second is the housing industry, from lenders to realtors to homebuilders, all of whom value lower mortgage rates and the liquidity that keeps mortgage money flowing even in high-stress economic scenarios. A third is investors, who value the GSE guarantee against loan defaults.
2. Fannie Mae’s will retain its business model. Could the private sector take over Fannie Mae’s credit guarantee function? Yes. But the private sector has shown no interest in doing so in the 15 years since conservatorship.
3. It is unlikely that conservatorship will end until Fannie Mae is reasonably well capitalized. Fannie said in its Q-3 10-Q that its total risk-based regulatory capital requirement is $187 billion. Its current capital is $74 billion, and more than all of that is preferred stock; common equity is ($47) billion. Fannie needs another roughly $125 billion of capital, which will take 6+ years of earnings retention.
4. The government wins nearly all legal battles. The federal government has been sued by lots of GSE investors trying to re-assert private sector ownership rights. Little progress has been made. Congress is unlikely to step in to support the wise-guy hedge funds and other investors pursuing the lawsuits.
Valuing the stock.
As I said above, Fannie Mae should earn about $17 billion this year. My discussion of Fannie’s fundamentals suggests slow growth, say 3-5%. A related GSE I write a lot about is Farmer Mac (AGM). Farmer Mac has a much smaller share of its market, and therefore much better growth prospects than Fannie. Further, Farmer Mac pays dividends, while Fannie Mae cannot because of the conservatorship status. Farmer Mac’s stock is trading at a 12 multiple. A lower multiple is therefore appropriate for Fannie; 9 feels about right. That suggests a $150 billion market cap.
That wasn’t so hard. But making a per share valuation estimate is. There are about 1 billion common shares outstanding. But the federal government has a $180 billion claim on Fannie Mae through preferred share ownership. How that converts to common is unknown.
So what is a fair value per share? Got me. And be quite suspicious of anyone who thinks they know that answer.
The bottom line.
Fannie Mae is a very profitable operating business, but the ownership unknowns make it impossible to value the stock with any degree of confidence.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
The Government stole from private shareholders rigged the system but the Courts said yer that’s fine it’s in the law BUT a jury found it to be NO SO! The corrupt government has been caught Red Handled by the people !
SIGN THE FINAL JUDGEMENT AND GET ON WITH IT WOULD YOU JUDGE LAMBERT
FHFA breached "the implied covenant of good faith and fair dealing" by implementing the 3rd Amendment. The breach will cost the Taxpayers $96,474 per day, as long as the 3rd Amendment is not canceled @DeloitteUS @PwCUS @POTUS @SecYellen @FHFA pic.twitter.com/eu3IL5wsjX
— Ano (@Ano3020100) December 29, 2023
Why? Does this story go against your hope that commons are 100% not going to be diluted???
Every possible angel must be presented no rock left unturned until the companies are released ! No one knows nothing whats the Government or knows how these two will be released !!!
Yep I agree! It’s war on freedoms with the WEF and UN taking over every part of our lives to push this fake climate change. You see it now on everything. A small fee. Even on Freddie and Fannie loans ( environmental fee) WTF
So he’s saying SPSA will paid classes as paid off! JPS get par or a negotiated 20% of par. But he says commons get diluted by 90% ??? I hope not !!
https://www.valuewalk.com/fannie-mae-freddie-mac-exit-conservatorship/
What will happen to the shares?
At that point, the securities could be called and replaced with preferred shares that have a much lower coupon or possibly be convertible. If that happens, the value of the preferred shares will increase well before the dividend is paid. Bove expects a 100% price appreciation, and if they hold for three years, "well more than that."
On the other hand, he believes the common shares could be diluted by 90% to 100%. He also expects Fannie's and Freddie's earnings power to be "meaningfully compromised," resulting in a decline in the common shares' price.
Centry21 realtor is a Buffet company as well and they handle loans to trailer park house and prefab homes as well as alot of central Florida homes.
Who is this clown who thinks his articles are worth $230 the guys dreaming !!! Anyone with a brain can read and understang 10Q and why and where the GSE’s are right now.
https://www.insidemortgagefinance.com/articles/229344-gse-3q23-earnings?v=preview
I don’t think BRICS is part of the OWO or WEF. That would have great fire power to release the GSE’s as people and companies like Larry Fink and Black rock own alot of fannie and freddie or will do if Dems release them.
FANNIES GOT THE LEGS TO CONTINUE
Shorts running for the hillshttps://www.otcshortreport.com/company/FNMA
FREDDIE GOT THE LEGS TO CONTINUE !!!!
Shorts are running to the hills !
https://www.otcshortreport.com/company/FMCC
As FMCC sits at upper Boll band of $0.79
Had to come sooner or later! Pull back reload flake out weak hands!
IT’s a Trump Trade come Nov 2024! Could the Trump administration really set in motion the release of the GSE’s
$FNMAS $FMCKJ pic.twitter.com/qtypttUysL
— familymang (@familymang1) December 27, 2023