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Blue's info 6 months old.
in addition, gator and others were far from being hurt by the amendments. they pumped and dumped. laughing all the way to the bank. there was no damage from their dipping in and out of jr pfds.
Goldman Sachs: "Overall, our expectation continues to be that GSE reform is unlikely to be enacted this year or next"
6:17am - 21 Aug 13
Check out @JimPethokoukis's Tweet:
Goldman Sachs: "Overall, our expectation continues to be that GSE reform is unlikely to be enacted this year or next"
— James Pethokoukis ⏩️⤴️ (@JimPethokoukis) August 21, 2013
Blackrock Housing Finance Update (PDF Download)
Still looking into this. Just saw it come across my feed.
http://www.blackrock.com/corporate/en-cn/literature/whitepaper/viewpoint-housing-finance-update-081913.pdf
could it be those that need the fmic pay the premium similar to pmi if you own less than 20% equity in your home?
first base covered: fmic would be for buyers w 3-1/2% to 19.9% down.
second base covered: banks retain 5-10% skin in the game on mortgages they are involved in.
is this going to be the bulk of the reform?
my gut tells me obama only has religion about finishing dodd-frank now because election season is approaching.
politicians. par for the course. frack!
oh well, we will take progress where we can get it.
thing of beauty!
i think the dread of another 3 month vacuum trickle down is causing some to sell. im considering it to preserve cash and then buy back in lower.
too brash in the sense they didnt want to bite the hand that feeds while the political details of fnf's fate is being worked out. they know us hitting net zero now would spark outcry to release them.
i believe the political scene is too raw right now. recognizing dta would have been too brash.
my funds clear tomorrow.
can not wait to pick up a few shares.
chomping at the bit.
Chrisanj, Where is term "Paid back"?
The July 29th reponse by Freddie's CFO Kari reads:
The True Value of Freddie Mac
By EVP and Chief Financial Officer Ross Kari on July 29, 2013
EVP and Chief Financial Officer Ross Kari
There's been a lot of talk in recent months about the payment of billions of dollars to the Treasury by Freddie Mac and Fannie Mae (the GSEs). That's understandable. Freddie Mac's six straight profitable quarters show a remarkable reversal of fortune. And this reversal is one key reason people are wondering when the GSEs might go “net positive” with the taxpayers.
This new public attitude is not just gratifying, it's meaningful. For the housing markets are growing stronger, and Freddie Mac's new book of business – high-quality mortgages from 2009 and later – has grown to more than two thirds of our total portfolio.
But for all the deserved focus on our contributions to the taxpayers, people shouldn't overlook our other contributions that are no less essential. Freddie Mac's work to sustain the housing market through a five-year slog back from the depths of an historic housing crisis has its own immense value. And this value is measured in the tens of billions of dollars.
Freddie Mac's benefits begin with liquidity – $1.9 trillion in funding for the combined single-family and apartment markets since the start of 2009. Freddie Mac and Fannie Mae provided roughly 70 percent of the residential market's liquidity in the first quarter of this year, and even more in earlier years after the crisis. Experts across the political spectrum have noted that without support from the two GSEs throughout this period, the damage to housing and the broader economy would have been worse by many billions of dollars.
All this liquidity helps keep costs low and saves consumers money. Since the beginning of 2009, Freddie Mac bought or guaranteed nearly $1.4 trillion of refinance mortgages, helping more than 6.6 million homeowners. And for the Freddie Mac loans refinanced in the first quarter of this year alone, homeowners will save roughly $2.1 billion in interest payments over just the first 12 months of their refi.
Freddie Mac's foreclosure avoidance efforts also carry huge benefits. Since the start of 2009, the company has helped more than 830,000 families avoid foreclosure. The value of saving that many homes from foreclosure reaches as high as $36 billion (an estimate that includes losses to borrowers and Freddie Mac, and the deadweight losses of foreclosures to the economy as a whole).
There are plenty of other examples of the same essential point. If not for the steady, vital work of Freddie Mac and Fannie Mae since the crisis, the damage to the housing market and U.S. economy would have been far worse. And the housing recovery might still be a hope, instead of a reality.
So make no mistake – after years of heavy losses and harsh criticisms, we're glad to be profitable again at Freddie Mac and to return funds to the Treasury and the taxpayers. But most of all, we are grateful for the opportunity to serve our vital housing mission, and to vindicate the decision by policymakers to keep us alive five years ago.
Freddie Mac's mission is to provide the housing market with liquidity, stability and affordability. That's what we do every day, thanks to specialized people and infrastructure. That's what enables the profits we are generating for the taxpayers. And for all the welcome value of our infusions to the Treasury, that housing mission remains the most fundamental and enduring value of Freddie Mac.
http://www.freddiemac.com/news/blog/ross_kari/20130729_true_value_of_fm.html
...and i have some ocean front property in arizona.
shares down on a negative barrons article, and flat on the previous few weeks of good articles?
all things being equal, good article should bump it higher, bad articles drop pps. this isnt the case.
boo-sheet is what i call.
headfake before the run up.
i was just responding to betas post about the pps jump while Kuhn was talking about FnF. CNBC listed FNMAS and FMCKJ tickers on national tv.
would have liked to see 5 or 10 of the lesser known classes shown.
they actually listed the fnmas and fmckj ticker symbols and charts on the screen. woo hoo!
fracketty frack. something broke, or the market is lowering the price before the next upswing.
raindancer,
it is amusing how you trash everyone in your posts and the tell everyone "good luck an i hope you make money" as if you care.
everyone you are trashing has bought pfds in the 40-99 cent range YEARS ago and are doing ok. where were you then with your omnipresence? those who hold pre-crash pfds were counting on the gov to hold up to their word. the gov lied and hurt a lot of investors. you could be hurt just as easily by any of the "safer" shares you currently own if you are blindsided by unexpected news today.
you are a johnny come lately that has a devisive nature compounded by an inferiority complex. LACES OUT!!! i wish you good luck and hope you have a wonderful day.
see, its weird when negativity is followed by a drop of sweet honey. please refrain, its not a good look.
one of the best films i have seen.
precipitationskipper_uno, i will add your dire warnings to the trash heap of previous posters statements about fnf being dead. we heard lots of them around the pfd .60 cent range. so are you out, or are you buying 50,000 more shares?
everytime i hear talk like yours, i buy a little more.
basing investments on old, highly charged political remarks is what we do.
you know...just for fun.
good point. everyone needs to remember small banks own large amounts of preferreds, penny flipping vultures arent the main holders even though the media may paint it that way.
agreed devil, there arent trillions of dollars in liquid cash.
my point was these trillions of dollars of assets have to "go" somewhere and be handled by someone.
i think we can all agree even the gov isnt dumb enough to do something so rash as to cause major financial disruption in the heart of our nations wealth.
i am interested to hear your logic and side of the story when you feel more up to it. i value your opinions, and i know others here do too.
come on. are trillions of dollars going to go "poof" into thin air?
whatever.
this thing is going to get resolved in fast forward mode.
congress was going to sit on their hands. now there is the political motivation to finally wrap this up.
good things!
lawsuit will get settled at 10, 20, or 40 billion.
pfds will ok.
bet your bottom dollar this lawsuit wasnt written and prepared overnight. it takes months to assemble and prepare. when this is all over, we will find out that the big buys in pfd came when hedge funds picked up the scent that lawyers were preparing this suit. they arent going to lose their investment, and neither will we.
buying more.
whoa...police fund. that settles it in my mind. no way they are going to lose this one. public is already on the police's side and i could see public getting po'd if the gov took money from public servants. they are the poster child for this lawsuit imo.
this should settle the "pre crash owners vs. post crash vultures" debate we were having last week.
pre crashers would be settled up with for the hanky panky and wipe that slate clean.
then, the vultures make out in a different way. good or bad we dunno. will remain to be seen.
not here...about 4-5x from here and then yes. :)
what about u cam? sippin on little umbrella drinks on the beach?
~Blue~ you invaded our board pumping commons, made your money, and moved on. would you please remove your sticky post from the top of the page?
straws....keep grasping for them.
SA, email me at saltflatcruiser@gmail.com
MISLEADING ===> "Finally conservatorship come to an end"
This is your assumption, and of what hasnt even happened yet.
Please show proof that conservatorship has ended if you claim it confidently.
"Commons and preffereds will be exchanged 1:1"
You conveniently leave out the scenario where the gov converts almost $200 billion of senior preferreds stock into common stock to exit their position, and MASSIVELY DILLUTE commons. 1:10 or 1:20 reverse split first, THEN the commons get 1:1 exchange in the new entity.
Article about Demarcos senate meeting today "More Details On New Mortgage Market Infrastructure, More G-Fees Too"
http://www.mortgagenewsdaily.com/04182013_fhfa_ed_demarco.asp
"DeMarco that while the role of government is ultimately up to the lawmakers, in his opinion the main purpose of housing reform should be to promote the efficient provision of credit to finance mortgages for single-family and multifamily housing. An efficient market system for providing credit to people who want to buy houses should:
(1) provide consumer choice
(2) provide consumer protections
(3) allow for innovation by market participants
(4) facilitate transparency."
blue, "the reality" is you are late to the game. preferreds havnt always been $4.70.
most everyone here bought preferreds at 60 cents.
it will do you no good to try and convince us to switch to commons because our base is lower that the existing price of commons.
a good portion of our run up has already happened.
i wish you good luck.
Housing Finance Redo Should Happen This Year, Says HUD’s Donovan
http://business-finance.top10-digest.com/housing-finance-redo-should-happen-this-year-says-huds-donovan/
Lawmakers and regulators shouldmove forward this year with plans for overhauling the U.S.mortgage finance system, Housing and Urban Development SecretaryShaun Donovan said today.“We need to ensure that we’re doing everything we can toput in place the housing finance system of the future,” Donovansaid in an interview.President Barack Obama as well as Democrats and Republicansin Congress have said they want to wind down and replace FannieMae (FNMA) and Freddie Mac, the two mortgage financiers seized by thegovernment in 2008.
To date, no detailed plans have emerged.In the meantime, the two companies, known as government-sponsored enterprises, have started posting regular quarterlyprofits as the housing market rebounds.Fannie Mae and Freddie Mac together back about two-thirdsof home-loan originations. The Federal Housing Administration, agovernment mortgage insurer, backs about 20 percent. That leavestaxpayers on the hook for losses in the event of another real-estate crash.“Reform of the failed model of the GSEs, the private gainsand socialized losses model, is a top priority and it’s criticalthat we make progress this year toward that goal,” Donovansaid.Clearly defining the mission of the FHA, which is an arm ofHUD, should be part of that overhaul, Donovan said.
He is scheduled to testify at a House appropriations hearing Wednesdayabout the budget at the FHA, which is facing a shortfall due tolosses on loans it insured as the housing market crashed.
"My take...If Zandi means principle reduction it will delay taxpayers being paid back and a longer road ahead for us."
i agree with this. the money slated to impact our bottom line from lawsuits should have gone to pay off our debt to the taxpayers and more quickly free us from gov control. instead, we are going to have to allocate those funds to pay off principle write downs driven by politcal agendas. frack!
obama is kicking demarco out to satisfy this agenda.
longer road indeed. not a killer, but a bummer for sure.
so zandi could be a good thing for fnf, but the principle write downs could exceed the amount of money that will be procured from the big bank lawsuits.
does anyone have rough numbers of how much principle write downs are vs. possible lawsuit reclaimations?
still not not getting the warm fuzzies that this wont negatively affect shares tomorrow.
jan 24, 2012 zandi article: Fannie and Freddie Don't Deserve Blame for Bubble
http://m.washingtonpost.com/realestate/fannie-and-freddie-dont-deserve-blame-for-bubble/2012/01/23/gIQAn3LZMQ_story.html
There is plenty of blame to go around for the U.S. housing bubble, but not much of it belongs to Fannie Mae and Freddie Mac. The two giant housing-finance institutions made many mistakes over the decades, some of them real whoppers, but causing house prices to soar and then crater during the past decade weren’t among them.
The biggest culprits in the housing fiasco came from the private sector, and more specifically from a mortgage industry that was out of control. These included lenders who originated home loans, investment bankers who packaged them into securities, rating agencies that misjudged these securities, and global investors who bought them without much, if any, study.
Getting history right for this dark economic period is critical if we are to design a better mortgage finance system for the future. If Fannie Mae and Freddie Mac are responsible for the debacle, then perhaps government’s role in a future mortgage finance system should be minimal. But if private lenders deserve most of the blame, the case grows for giving government an important role in backstopping and overseeing the system.
zandi effects - best guesses on pps movement tomorrow? up, down, no effect?
attempting to get my arms around the zandi situation.
in a nutshell, zandi is a compromise on both sides of the aisle.
he will write down principle balances on underwater home loans on one side, then he will pay for those write downs by being more aggressive on the bank lawsuits forcing them to pay up.
bank lawsuit money cancels out loan write downs.
or am i off base?
demarco did not execute principle write downs. he avoids moral hazard and damaging blow to fnf's bottom line. demarco gets booted.
zandi is all for principle write downs, so he gets the job.
zandi will institute principle write downs. fnf books will take a hit.
i see principle write downs as bad for our share price.
unless this happening is already baked in as just another hurdle that must be overcome before fnf get broken up and pfd shares are made whole.
cam, tried to look it up on google but not showing up yet.
what time did this article hit the wire?
good call, Camaro....pfds rested today.