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' GSEs won't be reformed for a year or 2, it makes me think reform is near.'
when reform as proposed by corker-warner, and the heitkampet al(gang of 8)proposal start getting traction, roubini and krugman and bernaki will issue a joint plea to obama, congress, the supreme court, even the tea party, and stop the insanity. even the koch bros will join in.
all that are proposed are fnf termination bills, no replacement bills. if fnf get 'wound down, not just for fnf, but for housing, banks, and the economy will also get "wound down. if fnf get shut down, as these looney tunes propose, the great depression of the 30's will look like a walk in the park.
Jr pref holders better off with two Attorneys heading FHFA (Watt- JD)''
i could not disagree more. watt is a know nothing person who happens to have a law degree, and a strong allegiance to the black cacaus, and to obama. he has been tasked with terminating fnf as soon as possible. the saving grace is that this guy has never done anything and probably is incapable of doing anything. check the legislation he has intorduced, and the passed bills. legal training is to find loopholes. not to be a productive member of society. watt has never done nothing. this is not a raciest rant. watt is just worthless. demarco has done a brilliant job of threading fnf through the mine field, and creating the most profitable orginazation in the world, in spite of 400+ lawyers trying to stop him.(congress).
on hethcamp website
Jun 25 2013
Banking Committee Senators Introduce Legislation to Modernize and Reform America’s Broken Housing Finance System
Bill Protects Taxpayers, Winds Down Fannie Mae & Freddie Mac, Preserves Mortgage Market Liquidity
way way down in the bowels of this post:
"Replaces the failed “housing goals” of the past with a transparent and accountable market access fund that focuses on ensuring there is sufficient decent housing available. The fund is NOT paid for with tax dollars, but through a small FMIC user fee that only those who choose to use the system pay."
what does that mean, only those who choose?
'Sen. Heitkamp Making Rounds on Community Banking, GSE Reform' ND is the biggest boom state in the union. it is also full of small businesses filling the needs of the oil camps. businesses are working out of mobile devices(trucks and busses) to provide all the services one normally finds at a strip mall. clothing, medical, auto parts, food, etc. all small businesses. all very profitable.
biggest boom since deadwood.
I wouldn't mind attending the hearings. Would like an address and room # though.
when i make time to assign a date, and judge, i will let you know. after that assignment, judge will pick a start date.
most of this activity goes on in and arround the courthouses in and around judiciary square, around near the judicary square metro stop at judicial square
fannie mac stock options
http://www.reuters.com/article/2012/10/23/us-fanniemae-employee-lawsuit-idUSBRE89M02B20121023
i think one can calculate it from this data. as i was always told, the resolution is left as an exercise to the student..... please report your guess.
September 7, 2013 shall forever be the 41 billion day. that is a saturday. courts are not open on saturday. that is probably the due date for the reply from the feds on perry. the other 6 were filed only a few days after perry. they should show up soon. i have not seen doj attys assigned to any other than perry.
if anyone wants to attend the circus once the elephants arrive, i would be glad to pick them up at airport, and we drive in together. i have a secret parking space that is very close. it is reserved for cops, so can usually trade donuts for parking.
la times:
Fannie said Monday that it already sets aside reserves for losses on mortgages more than 180 days past due. The company had $53.1 billion in loss reserves as of June 30.
"The guidance FHFA has issued would change our methodology for charging off loans, but would not materially change our results," Fannie said.
The agency issued a bulletin in April 2012 directing Fannie and Freddie to write off an outstanding loan balance above a property's fair value of mortgages that were more than 180 days delinquent. The FHFA said "the likelihood of full repayment is remote" for such mortgages.
ETRADE ACCOUNTING
using tax law as an excuse, etrade has dropped the purchase dates of about 40% of my fnf purchases. has anyone been able to force them to dig up the purchase date and the cost.
example: i show 3800 shares of fmcch with 4 purchases. 3 are probably correct.the last purchase of 300 shares is shown as 11/5/2012 and $2.55 a share. i have many(20-30) more trades for fnf pfds on 11/5/2012. i traded no fnf in the year 2012, and cannot find any of these trades on my treansaction sheets. these trades probably date from 2008-2010. anyone else have this problem, and were they able to get etrade to correct this problem, and how?
can i call the irs, and claim that etrade is posting false data, and can i use it to pay my tax gains?
accounting on delinquent loans.
do banks write off their del loans, or do they still have them buried behind the gold suppy?
i do not know what percentage of the 3 month del fnf loans are later recovered. but the whole mess of write the loan off, then forelose and recover seems to me to be an effort to place more accountants. a lot of the recoveries are over 50% of loan value. seems a real mess to me.
the hearing is NOT sept 7.
i think wilkins will assign, not preside. the whole mess will be combined into 2 or 3 cases, then heard. see you in 2020 or there abouts.
corker in action
worth the read. he is full of himself. considers himself presidential material. wonder if he has a birth certh.
http://www.tennessean.com/article/20130819/NEWS02/308190026?nclick_check=1
get advice from a lawyer
instead of me. i cannot believe i said that, but your ideas of a class action suit of this type are so far real world, go talk to a real business lawyer. not the guy handling your divorce, house, or drug problem, but just a real lawyer practicing biz stuff. you will need one or two hours. will cost $2-600. i would say if you have 10,000+ shares, it will be well worth your while.
too many on board
the number of people jumping on board the shut down fnf express give all the more brave souls the cover to also jump on board. i think there are over 20 flag wavers now. this is not good.
ouchie, ouchie. not a late arrival.
Perry Capital's funds, which have held private-sector preferred stock in the companies since 2010, relied on the original terms of the government's preferred stock when purchasing the shares, according to the complaint. The hedge fund doesn't specify damages, but asks that the Third Amendment be halted, alleging that the Treasury lacks statutory authority to liquidate the companies.
ouchie, ouchie. not a late arrival.
1:13-cv-01025-RLW PERRY CAPITAL LLC v. LEW et al
Robert L. Wilkins, presiding
Date filed: 07/07/2013
Date of last filing: 07/31/2013
Deadlines/Hearings
Doc.
No Deadline/Hearin Event Filed Event
Answer - All Fed Dft 07/12/2013 09/07/2013
i think 9/7 is a sat. court is closed.
Source: Pomerantz Grossman Hufford Dahlstrom & Gross LLP
NEW YORK, Aug. 16, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action in United States Court of Federal Claims, docketed under 13-cv-00496-MMS, on behalf of a class consisting of all persons or entities who purchased or otherwise held shares of Federal National Mortgage Association ("Fannie Mae") and/or Federal Home Loan Mortgage Corporation ("Freddie Mac") Junior Preferred Stock prior to, and as of August 17, 2012 all dates inclusive (the "Class Period"). This class action seeks to recover damages against the Government of The United States of America for just compensation for violation of the Fifth Amendment of the U.S. constitution. The Complaint alleges that the Government, by imposing the Net Worth Sweep, took Plaintiff's and Class' vested property rights without just compensation.
If you are a shareholder who purchased shares of Fannie Mae or Freddie Mac Junior Preferred securities during the Class Period, please contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
The Complaint alleges that in September of 2008, the Government (acting through the FHFA) placed Fannie Mae and Freddie Mac into conservatorship, putting it under the control of the FHFA, which is an agency of the Government.
In connection with the conservatorships, the Government (specifically, the U.S. Treasury) entered into substantially identical Preferred Stock Purchase Agreements (the "Agreements") with both Fannie Mae and Freddie Mac. Under these Agreements, the Treasury acquired from each company preferred stock (the "Senior Preferred Stock") that (i) is senior in priority to all other series of Fannie Mae and Freddie Mac preferred stock (all such other series of Fannie and Freddie preferred stock shall be referred to as the "Junior Preferred Stock"), (ii) was given an initial face value of $1 billion, but also provided that this face value would be increased by any amount the Treasury invested in or advanced to Fannie Mae or Freddie Mac, (iii) would receive preferential liquidation rights (i.e., would receive face value, as increased by any Treasury investments or advances, as a liquidation preference prior to any monies going to the holders of Junior Preferred Stock or Common Stock), and (iv) would earn an annual dividend of 10% of the face value (as increased by any Treasury investments or advances). In addition, each of the Agreements provided the Treasury with warrants that could be exercised at any time to allow the Treasury to acquire 79.9% of the Common Stock of Fannie and Freddie, respectively, for a nominal price.
Between the start of the conservatorship in September 2008 through the beginning of 2012, the Government advanced Fannie Mae and Freddie Mac more than $188 billion-most of which was advanced to cover accounting losses reflecting excessive write-downs of assets that have turned out to be worth far more than their written down amounts. These advances increased the face value of the Senior Preferred Stock held by the Government to approximately $189 billion, entitling the Government to an annual dividend of approximately $19 billion, which translates to a quarterly dividend of just under $5 billion.
By 2012, the housing market was well on its way to recovery and Fannie Mae and Freddie Mac had become profitable again, reporting increasing profits through 2011 and 2012. Indeed, by the second quarter of 2012, Fannie and Freddie made a combined quarterly profit of approximately $8.3 billion. This was the first quarter for which Fannie and Freddie reported a combined quarterly profit that exceeded the just under $5 billion quarterly dividend payable to the Treasury on its Senior Preferred Stock. Thus, by no later than the end of the second quarter of 2012, Fannie and Freddie were generating sufficient profits to pay a dividend to the holders of their Junior Preferred Stock (or to payout in a liquidation distribution, in the event of any liquidation, dissolution, or winding up of Fannie or Freddie). However, on August 17, 2012, the Government unilaterally amended the terms of its Agreements with Fannie Mae and Freddie Mac, and mandated that, beginning on January 1, 2013, Fannie Mae and Freddie Mac would have to pay the Government dividends equal to their entire net worth (the "Net Worth Sweep"), leaving Fannie Mae and Freddie Mac with no funds to redeem the Government's Senior Preferred Stock or to distribute to the holders of Junior Preferred Stock, whether by dividend, redemption, or in a liquidation. The Government's August 2012 action appropriated the valuable contractual and property rights owned by the holders of Junior Preferred Stock for no consideration.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
capwest
http://www.cutimes.com/2013/08/16/capwest-mortgage-expands-its-secondary-market-oper
i thought those were the guys in tennessee who held a lot of fnf pfds
are these all district court cases, or is that list also the federal cases. if so, at least one is missing. i have a dist and a fed filing in hand for the cacc..... cases filed by bls.
george has listed 7 cases. some in dist court, some in fed court. will probably end up combined into2 or maybe 3.i am amazed as to how fast tracked this is. certainly justice is not ready to cover 7 cases in the next two months. would require staff of about 50+ lawyers.
as i recall, perry is a 3rd A case. it would be in dist court. the 5th A cases are federal.
george, could you translate this for me, please
1:13-cv-01053-RLW
i use etrade also. their present for my 2012 taxes was to delete purchase prices on a number of my transactions in my portfolio. then when i dug them up, i was unable to put them in my portfolio.
big bank bailout
anybody got a number on the size of the "big bank bailout?' or even just the top 13 or how ever many there were.
would be nice to compare to the 187B.
' Does that mean that they have to go completely out of business?'
i would think not. some entity would have to purchase them, then recapitalize them. so someone offers 50B or 100B for the whole thing. certainly if they go into Rship, they would have to be sold to highest bidder. i imagine the chinese and the russians and the germans would be extremely agressive bidders.
But Hensarling, who’s promoting his mortgage reform bill known as the PATH Act, says government needs to get completely out of the home loan business.
“If, at the end of the day, taxpayers are still on the hook, then I fear all you’ve done is put Fannie and Freddie in the Federal Witness Protection Program, given them cosmetic surgery and a new identity, and released them on an unsuspecting public,” Hensarling said.
completely out means just that.
The President continued discussing the potential dissolution of both Fannie Mae and Freddie Mac, with no real course of action laid out should the two government-sponsored enterprises (GSEs) become things of the past.
fearless leader has spoken. note reference to watt, and real purpose
“We need to wind down the companies known as Fannie Mae and Freddie Mac, make sure private capital plays a bigger role in the mortgage market, and end the era of expecting a bailout after your pursuit of profit puts the whole country at risk,” Obama said. “We need to preserve access to safe and simple mortgages like the 30-year, fixed-rate mortgage. We need to keep laying down rules of the road that protect homeowners when they’re making the biggest purchase of their lives.”
Obama also highlights the fact that recovery won’t be immediate and that no piece of legislature is the magical cure-all for the housing market or the economic downturn. The President also continued his push for Rep. Mel Watt (D-NC) to take command of the Federal Housing Finance Agency (FHFA). This would give Watt control over both Fannie Mae and Freddie Mac, thus allowing the eventual dismantling of both GSEs to commence with little difficulty.
So far, the President hasn’t laid out much of a plan. It’s interesting to note that if this was HBO's "The Newsroom," a fictional drama about a news program set two years in the past, scenes of reporters hounding a frazzled White House Press Secretary would revolve around Obama’s mythical plan for housing reform, which is, as of this writing, at best, nebulous.
"obama wants to get something done"
http://malonigse.blogspot.com/2013/08/its-long-but-worth-reading.html
'Maybe they don't have to disclose?'
feds only require reporting (voting)controling stock. pfds do not have to be reported. wonder if corker knows capworth
"That’s why I introduced the GSE Bailout Elimination and Taxpayer Protection Act, to protect taxpayers from more GSE losses. My bill would privatize Fannie and Freddie over a 5 year transition period, gradually eliminating taxpayer subsidies in the secondary mortgage market. "
if that ain' eliminate, i don't know what is. he wants fnf completely privitatized. he wants to give the whole package to the banks.
'seeking public input on strategies'
if a 5trillion dollar company with 10k employees, and all the help of the eunited states government(plus obama) does not know how to run that operation, they should hire me as a consultant. i know everything, and have an answer for everything, and i work cheap.
sort of reminds me of nursery rhime, ......and all the kings horses and all the kings men could not put humpty dumpty back to gether again.
i think they can drag him out of his grave.
gsez to punt on 3rd down
http://www.housingwire.com/articles/26086-fhfa-seeks-input-on-gse-reform?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29
this is hilarious. they want to punt.
The Federal Housing Finance Agency is seeking public input on strategies for reducing Fannie Mae and Freddie Mac’s presence in the multifamily housing finance market in 2014.
"My opinion is much sooner than later
I don't think Bruce Berkowitz tied up $500M to sit around waiting."
i completely disagree. i do not see the feds giving up a 30-60B/year cash cow, or writing a 40B check for back dues quickly. this is un tested legal mud, and will take one or two supreme court decisions(there is a distinct possibility that the federal court and the district court cases [3rd and 5th adt]) cases track separately. the feds will stall forever. 5 years if lucky. 10 years if feds are lucky.
those of you thinking 6 months to 1 year are dreaming.
if those are 48$ shares, thats 1.5 billion$. lots less than fnf he owns. i think he must own common, and must report how much he holds.
hired an atty? has anyone hired an atty for advice. i have, and would like to compare notes with others who have them. i did also get comments from one of the parties filing one of the suits.
'i believe prefs are already good money. just a matter of when to collect. it'll probably be one big jump to par. '
i think you are right, mike. par on half are a buck, on the rest no par........................
'they have 24 billion dta left?'??? i thought fannie started with 66, and put up 60. now they have 24 left?
mortgage on 200k house?
160k borrowed, 5% loan, 8k year(plus a bit)=666/month. zandi estimates from 666 to 800/month. is that not a huge jump? and will have a huge effect on all the middle class dems?
Mark Zandi, chief economist at Moody's Analytics, has come up with a few estimates. If he's right, under the Senate's plan, the typical borrower with a $200,000 mortgage and a 20% down payment could pay about $75 per month more in interest on a 30-year mortgage, or about half a percentage point more. Under the House plan, which would virtually privatize the mortgage market, borrowers on average would pay about $135 more a month
Seniors will own 79.9% of newco
remaining 20.1%
junior 50 preferreds = 1 junior will get 4 newco
junior 25 preferreds = 1 will get 2 newco
commons = 1 for 1
i don't think the federal govt can "own" them. if the trys, without full compensation to current holders, even my lawyer, who works out of a house in hyattsville md will hit them with a law suit.
in another quarter or two, seniors and taxpayers will be paid off. they should disappear. to be paid off, then take 79.9% of newco is going to raise abit of anger among the rest of the holders.