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BlackRock and its customers have a huge financial stake in the outcome of a Fannie and Freddie overhaul. The firm says it has more than $1.6 trillion under management in fixed-income funds, which include funds that invest in mortgage bonds.
That is not how much in Fannie so I don't know how you came up with that.
https://www.nationalmortgagenews.com/articles/blackrock-says-dont-recap-and-release-fannie-and-freddie
As long as the RSI stays flat, like it has been all week, the stock will not move up.
It says nothing about $1.6 trill
I think you read a BS article, they probably have 1.6 Billion in Fannie, and that would mean they own almost half the company at that price. Also, Berkshire has a bigger stake in them
If you add up all the commons and preferred stocks on both Fannie, Freddie and Ginnie, it will not add up to 1.6 trillion
That would be a huge loss to current common share holders if that happened.
Where did you come up with that, they've a market cap of $3.15 billion
So they can't own 1.6 trillion worth of the company
Has anyone else noticed the RSI has been flat all week?
Riley is a known short seller, he's just trying to cover himself with a fake analysis.
U.S. News partial article from yesterday
Pershing Holdings as of 4/8/2019
But performance recently is turning around, with holdings up 31.9 percent year-to-date in the first quarter. In buying Pershing Square, investors are buying a portfolio of eight high-quality stocks Ackman’s fund has a large stake in – and a somewhat speculative play on Fannie Mae and Freddie Mac.
Yeah I tried that but it still won't lest me paste it
Can anyone tell me how to paste a chart. It won't let me C/P it. I've a chart showing FNMA closing at $3.20 on Friday. It also shows a 78% probability. I've been doing this for 23 yrs and these charts are usually pretty accurate.
Why is Yuma moving so high? I can't find any reason in my research that would push this stock so high so fast.
After years of waiting for progress from Washington on housing finance reform, Federal National Mortgage Association (OTC: FNMA) investors aren’t necessarily getting what they had hoped for from Wall Street.
The Analyst
B. Riley analyst Randy Binner initiated coverage of Fannie Mae with a Neutral rating and $2.50 price target.
The Thesis
Binner says the current Trump administration is the best chance for meaningful reform for Fannie Mae, but the political realities of a reform plan suggest an uphill battle.
Last month, President Trump signed a memorandum initiating housing finance reform. Among the goals of the project will be to remove Fannie Mae and Freddie Mac from government control and “promote competition in the housing finance market and create a system that encourages sustainable homeownership and protects taxpayers against bailouts.” Trump instructed the U.S. Treasury to put together a plan for reforming Fannie and Freddie.
Binner says any significant changes to Fannie and Federal Home Loan Mortgage Corp (OTC: FMCC) will likely be resisted by Congressional Democrats.
'A Speculative Call, But..."
If the reform plan is eventually implemented, however, Binner says there's long-term value in Freddie common shares. He estimates 2020 assets valued at $3.6 trillion. At a 3 percent capital requirement, Binner forecasts an $85 billion capital raise for Fannie prior to privatization.
“This is a speculative call, but we view FNMA common and preferred securities as a call option on a large and increasingly sophisticated financial company that we believe would thrive in the private market,” Binner wrote in a note.
He says investors should expect significant dilution prior to recapitalization from the Treasury exercising its option to purchase 80 percent of Fannie common shares. The Treasury would likely then monetize that position, creating significant selling pressure in the market.
Binner says a recapitalization plan would likely include an end to the net worth sweep, and senior preferred notes would also be considered repaid. Binner says there’s about a 25 percent chance of a reform plan being executed that would leave "some value" for common shareholders.
I've been trading stocks since 1996 and B. Riley is a known short seller. it looks like he wrote an article with a $2.50 price because he got caught with his hand in the cookie jar short selling. It should be illegal for some of these people who own a stock to write any articles about them.
WASHINGTON -- The Senate confirmed Mark Calabria to oversee mortgage-finance companies Fannie Mae and Freddie Mac on Thursday, where he is set to play a critical role reshaping the way many Americans finance their home purchases.
The 52-44 vote along party lines elevates a critic of Fannie and Freddie to a key post responsible for overseeing the housing-finance companies, which have been under government control since the 2008 financial crisis. No Democrats voted with Republicans to confirm Mr. Calabria, a libertarian economist who serves as chief economist to Vice President Mike Pence. He will head the Federal Housing Finance Agency.
Washington is again wrestling with how to overhaul the mortgage-finance giants and the nation's $10 trillion mortgage market. Mr. Calabria is expected to play a prominent role shaping major and minor decisions along the way. The FHFA determines everything from the fees the companies charges lenders to the size of loans they can make.
"This status quo is not a viable option," Senate Banking Committee Chairman Mike Crapo (R., Idaho) said on the Senate floor ahead of Thursday's vote, speaking in support of Mr. Calabria's confirmation.
For more than a decade, lawmakers have tried and failed to overhaul Fannie and Freddie, which remain the last unresolved major issue from the crisis. The White House is now making a renewed push, through both legislation and administrative changes, with the goal of returning the companies to private hands over the coming years.
President Trump last week directed his administration to develop a plan to promote "competition in the housing finance market and create a system that encourages sustainable homeownership and protects taxpayers against bailouts." The details of that plan will be hashed out in the coming months by a handful by federal policy makers, including Mr. Calabria.
Mr. Calabria holds iconoclastic views of mortgage-finance matters and has been critical of some of the basic foundations of the U.S. mortgage market, advocating for the elimination of government support for the 30-year fixed-rate mortgage and for banks to hold more of the loans they originate.
He reversed himself at his February nomination hearing, pledging to preserve the popular mortgage product. "It is indeed possible for us to have a well capitalized, strong system that preserves the 30-year mortgage," he told Mr. Crapo's banking panel.
Mr. Calabria also has questioned the legality of the arrangement by which the Treasury Department collects the profits of Fannie and Freddie in exchange for its nearly open-ended support of the mortgage-finance giants since the crisis. That position sides with shareholders of the firms who have challenged in court the FHFA's administration of the companies.
Democrats said Mr. Calabria has championed policies that would make homeownership more expensive for individuals. "His record shows that Dr. Calabria is exactly the wrong person for the job," Sen. Sherrod Brown (D., Ohio) said, speaking on the floor ahead of the vote.
Major industry groups publicly backed Mr. Calabria's nomination, including the National Association of Realtors and the Mortgage Bankers Association, despite some of his positions being at odds with those of the housing industry.
Industry officials say they are hoping Mr. Calabria won't move too aggressively to shake up the housing market. They also point to him moderating his rhetoric, including at his nomination hearing.
"We urge Director Calabria to work closely with Congress in the effort to responsibly reform (Fannie and Freddie), particularly in search of policies that protect the 30-year fixed rate mortgage, secure a government guarantee and emphasize taxpayer and consumer protection," John Smaby, president of the National Association of Realtors, said in a prepared statement.
Supporters have touted Mr. Calabria's experience in the housing industry and successfully urged lawmakers to judge him based on the totality of his career, which includes stints working for the Senate banking panel, the Department of Housing and Urban Development and the National Association of Realtors.
Fannie and Freddie don't make loans but instead buy them from lenders and package them as bonds. The middleman role makes the 30-year fixed-rate mortgage more widely available by matching banks and other lenders with investors, such as pension funds that are willing to manage the interest-rate risk associated with long-term, fixed-rate mortgages.
Fitch Affirms Fannie Mae and Freddie Mac's Ratings at 'AAA'; Outlooks Remain Stable
(MORE TO FOLLOW) Dow Jones Newswires
April 03, 2019 15:08 ET (19:08 GMT)
Press Release: Fitch Affirms Fannie Mae and Freddie Mac's Ratings at 'AAA'; Outlooks Remain Stable
The following is a press release from Fitch Ratings:
Fitch Ratings-New York-03 April 2019: Fitch Ratings has affirmed Fannie Mae's and Freddie Mac's 'AAA' Long-Term Issuer Default Ratings (IDRs) with a Stable Rating Outlook.
These rating actions follow Fitch's affirmation of the U.S. Government's 'AAA' IDR with a Stable Outlook as described in the press release dated April 2, 2019.
A full list of rating actions is at the end of this release.
KEY RATING DRIVERS
IDRs, SUPPORT RATING AND SUPPORT RATING FLOOR
The ratings of Fannie Mae and Freddie Mac are directly linked to the U.S. sovereign rating, based on Fitch's view of the U.S. government's direct financial support of the two housing government sponsored enterprises (GSEs). The rating linkages are further articulated in Fitch's report 'Rating Linkages to the U.S. Sovereign Rating', dated July 18, 2011.
Fannie Mae and Freddie Mac are among the most active issuers in the capital markets, despite the fact that their corporate debt footprint continues to decline. The GSEs continue to benefit from meaningful financial support from the U.S. government. Key rating drivers for aligning the GSEs' ratings to the U.S. government rating include the GSEs' mission critical function to the U.S. housing finance system, and the U.S. Treasury's Senior Preferred Stock Purchase Agreement (PSPA). Under the PSPA, the U.S. Treasury is required to inject funds, up to the dollar amounts of the terms of the agreement, into Fannie Mae and Freddie Mac to maintain positive net worth, so that each firm can avoid being considered technically insolvent by their conservator. Fannie Mae and Freddie Mac last required draws in 4Q17 in connection with the reduction in value of their deferred tax assets due to corporate tax reform.
Although not expected, draws could also become necessary if economic conditions worsen materially causing credit performance of the GSEs' loan books to deteriorate. Sudden negative changes in expected future economic conditions could also lead to draws under the new current expected credit loss accounting standard, set for implementation in 2020. Nonetheless, additional capital draws from the Treasury would not change Fitch's current view of the ratings in light of the U.S. government's direct financial support assumptions.
In accordance with the dividend provision of the PSPA and quarterly directives from their conservator, the GSEs had been obligated to pay to the U.S. Treasury any amount that exceeds their $3.0 billion mandated capital reserve requirements for each GSE. Fitch believes the $3.0 billion should be sufficient to cover income fluctuations in the normal course of each GSEs' business such as from falling interest rates, which would cause valuation adjustments within the GSEs' derivatives portfolios.
On Jan. 6, 2019, a new interim Federal Housing Finance Agency (FHFA) director was appointed following the end of the previous director's term. The Senate Committee on Banking, Housing and Urban Affairs voted to advance the nominee to take over as permanent FHFA director to a full Senate vote on Feb. 26, 2019, although the full Senate vote has not yet occurred. Although the nominee for permanent FHFA director has advocated for overhauling the housing finance system in the past, more recent statements indicate a more moderate stance.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
In a 2008 statement, the Director of FHFA stated that the GSEs would continue to make interest and principal payments on the subordinated debt, even if the minimum capital levels are not maintained. Fitch's 'AA-' ratings on the subordinated debt are reflective of the conservator's willingness to support these obligations and the current timeliness of interest and principal on these obligations. Subordinated debt instruments make up an immaterial portion of the GSEs' debt funding, and the remaining outstanding subordinated debt instruments are set to mature in 2019.
The 'C'/'RR6' ratings of Fannie Mae's and Freddie Mac's preferred stock ratings reflect the ongoing deferral of payments and very low prospects for recovery.
RATING SENSITIVITIES
IDRs, SUPPORT RATING AND SUPPORT RATING FLOOR
The ratings of Fannie Mae and Freddie Mac are directly linked to Fitch's U.S. sovereign rating and will continue to move in tandem. If at some point in the future, Fitch views government support as being reduced, particularly though housing finance reform efforts, the ratings of the GSEs could be delinked from the sovereign and downgraded.
It is uncertain whether GSE reform will occur over the Outlook Horizon. Fitch believes obstacles stand in the way of meaningful GSE reform, despite the fact that the Trump administration, the Senate, the Department of the Treasury, and the FHFA have highlighted GSE reform as a priority.
If Fannie Mae and Freddie Mac were to be released from conservatorship, private capital would need to be sufficient to warrant high investment grade ratings on newly issued debt instruments, which we do not believe would benefit from implicit or explicit government support. Fitch expects that legacy corporate debt obligations would continue to benefit from implicit or explicit support of the U.S. government.
Deterioration in Fannie Mae's or Freddie Mac's available liquidity and/or inability to access capital markets over an extended period may result in negative rating actions, irrespective of the U.S. sovereign rating.
SUBORDINATE DEBT AND OTHER HYBRID SECURITIES
Should the FHFA change its position regarding the payment of the GSEs' subordinated debt obligations or if there is any deferral of interest or principal payments, Fitch would likely downgrade the ratings on the subordinated debt.
Given the ongoing deferral of dividends and low prospects for recovery on Fannie Mae's and Freddie Mac's preferred stock obligations, Fitch does not envision any changes to the 'C'/'RR6' ratings for the foreseeable future.
14:04 ET - A report from Moody's says any government-led reforms which reduced the footprint of US government sponsored enterprises Fannie Mae and Freddie Mac would be credit negative for the companies. "If the market role of the GSEs is materially revised or diminished in the next several years, such a development could substantially change the competitive dynamics of housing finance," according to Moody's Senior Vice President Warren Kornfeld. Moody's says a recent presidential memorandum on federal housing finance reforms increased the possibility measures could be implemented without legislation, but added that the large number of stakeholders and uncertain impact means any changes over the next year or two will likely be modest
WASHINGTON , March 11, 2019 /PRNewswire/ -- In support of the Single Security Initiative, Fannie Mae (OTCQB: FNMA) will begin accepting forward Uniform Mortgage-Backed Security (UMBS™) trades with a trade date on or after March 12, 2019 and settlement dates on or after June 3, 2019 .
The announcement follows confirmation on March 7, 2019 from the Securities Industry and Financial Markets Association (SIFMA) that their To-Be-Announced (TBA) Guidelines Advisory Council approved revisions to good delivery guidelines for the UMBS (decision summary). The SIFMA guidelines allow for forward June UMBS trades to be filled with existing Fannie Mae TBA-eligible MBS, or UMBS issued in June.
For additional details, please see chapter 8 of SIFMA's Uniform Practices Manual.
Fannie Mae is focused on providing transparency to ensure market participants have the time to plan for the implementation of the Single Security Initiative and UMBS.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.
View original content:http://www.prnewswire.com/news-releases/fannie-mae-will-begin-accepting-forward-umbs-trades-300810313.html
SOURCE Fannie Mae
Officials this week acknowledged that the transfusion of the life blood from Fannie Mae and Freddie Mac to large banks has taken more time than they expected but they’re ready to draft the obituary for the GSEs, nevertheless. Click this link and sign petition
http://investorsunite.org/former-government-officials-upbeat-eventually-killing-fannie-freddie/
I hope you're right, i've been sitting on 25k shares since 2012 and should've flipped many times, but have been more focused on other stocks.
Why are so few people involved in this stock on InvestorHub? Out of 14 analyst, they're showing an average upside of 105% this year
I read it in an article about a week a go, I'm sure if you Google it, you'd find it.
Trump is invested with F&F, so I see him releasing F&F from conservatorship if he wins the presidency.
Only on prefered stocks, common share stock doesn't pay a dividend. Also there are several to choose from with F&F
Did anyone catch that order that went through for 300 shares @ .001?
yep it's time to dump e-house and buy bitauto
I've 10k shares that i'm going to dump if the earnings are bad and the stock starts to fall
I can't believe people don't keep up with this stook
Does anyone have any opinions about earnings coming out in the morning.
I saw it was out but I can't find a link to it, if you have one could you please paste it.
Thanks, CC
Doe's anyone know if Ariad might be moving up Monday Morning?
Can you tell me what's coming out today about Ariad, between me and my father I bought 28K shares and he's freaking out about the buy out being just rumors.
It's on Think or Swim trading platform, you can't copy/paste it
Your not reading the same article, it says that they've offered them $20.00 PPS and the article on the Street was nothing but garbage written by a short seller
The article was posted on Think or Swim twice now, including today
It has been offered to Ariad but they've not responded and SmithKline and Shire are waiting to see what happens because they're interested also.
I don't know why people on here thinks the buy out is speculative, Eli Lilly has offered to buy out at $20.00 a share.
Eli Lilly has an offer to take over Ariad for $20.00 a share and Smith Kline and Shire are watching to see if the deal doesn't work out to so they can take over the company, The article on the Street yesterday was written by a jack ass short seller who wanted the price to drop so he could make bank.
Price target raised from $15.00 to $28.00 by Roth Management.