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Z,
Thank you very much for the detailed chart that you have shared with us yesterday.
I am also new to charting and have been learning.
According to your chart yesterday. Has the upward trend been broken? because it is not above 3.50?
Thank you for all the information you have provided with us.
Cheers
Any one see After Hours at $3.28?!? I thought there was no after hours???
I am confused with this gap. A month ago it did fill the gap at 3.15. But since today it opened at 3.17 does it need to get filled again?
I was looking for the 2012 Q4 ER but seems like it got released April 2nd. I hope I'm wrong but do we need to wait until April 2014 for 2013 Q4 ER?
So I am assuing, it is not similar to the run we had in May.
Back in May, prior to the pps dropping hard. Were the gaps been filled while it was heading to its peak?
Can you tell me what the RSI right now is?
Thank you
Obama Supports Freddie, Fannie Reform
Published on: Wednesday, August 14, 2013 Written by: Bendix Anderson
http://www.nuwireinvestor.com/articles/obama-supports-freddie-fannie-reform-61013.aspx
Market analysts had been certain that government-sponsored lenders Fannie Mae and Freddie Mac would continue playing a heavy-handed role in the residential and commercial lending sector, but an announcement of support by President Barack Obama for a bipartisan Senate bill calling for immediate reforms is changing people’s minds. The president is calling for private capital to play a bigger role in real estate lending across the board that would limit government assumption of risk without sending the system back to the days of irresponsible speculation that ended in the U.S. financial market crisis and ensuing housing market crash. For more on this continue reading the following article from National Real Estate Investor.
The likely fate of Fannie Mae, Freddie Mac and much of the multifamily lending business became much clearer on Tuesday, when President Obama endorsed a reform plan already underway in the U.S. Senate.
“Right now there’s a bipartisan group of senators working to end Fannie and Freddie as we know them. And I support these kinds of reform efforts,” said President Obama, speaking in Phoenix, Ariz., August 6. His speech called for private capital to take a bigger role in the mortgage market.
Currently, about a third of all the permanent loans made to multifamily real estate properties are made through Fannie Mae and Freddie Mac programs. Over the last few years, real estate experts have been deeply uncertain about the eventual fate of Fannie and Freddie, though few thought change would happen anytime soon. President Obama changed all that by supporting reform efforts like the Senate bill and creating unexpected momentum for action.
The Obama administration’s plans for Fannie and Freddie follow the ideas already laid out in the legislative proposal introduced by Senator Bob Corker (R-Tenn.) and Senator Mark Warner (D-Va.) earlier this year. “I think they are following Congress rather than leading,” says David Cardwell, vice president of capital markets for the National Multi Housing Council.
Little has been put into writing regarding multifamily, however under the leading proposals the government would continue to take on significant risk from home loans and commercial mortgages. “The centerpiece of this new system is an explicit and limited government guarantee on certain kinds of single-family and multifamily mortgages,” according a description by Enterprise Community Partners, Inc. This guarantee would probably be carried out by a government insurance fund that would guarantee mortgage bonds backed by home loans and commercial mortgages made through certain government-sponsored loan programs, according to experts such as Cardwell.
Private lenders could make permanent loans to apartment properties that meet the certain standards set by this government insurance fund. If these apartment loans suffered any losses because of foreclosure, private capital would take the first loss, the government would guarantee the rest.
A bond issuer could then issue AAA-rated bonds backed the portion of mortgage debt that receives the government guarantee. In exchange for this insurance on the mortgages, the lender would pay a fee to the government insurance fund. The resulting system would be similar to Fannie Mae’s Delegated Underwriting & Servicing program and Freddie Mac’s Capital Market Execution program, according to Cardwell. Under that system, loan originators hold the first part of the risk of loans on their own books.
Apartment experts had worried that reform might stop the government from issuing any more guarantees for loans to apartment properties. On May 3, the Federal Housing Finance Agency released reports that game out what would happen if their multifamily lending business were privatized and stripped of its government guarantee. The verdict was straightforward: “Without a government guarantee, a fully private company may not provide the same level and scope of services,” according FHFA’s reading of the reports.
The plan being discussed would save the guarantee—of course, the legislative game is far from over. “There a lot of work needed to fine tune the proposal,” says Clifton E. Rodgers, Jr., senior vice presidentThe Real Estate Roundtable.Industry groups are in close conversations with legislators—MNHC has meetings scheduled with several Senators of the Banking Committee.
Apartment experts are still concerned about the many details of the plan, such as how the new system might function in a new financial crisis. “GSE reform must not focus solely on single family housing but must also include a mechanism for supporting the conventional multifamily loan market during periods when the private financing market is incapacitated or in distress,” according to a statement by the Real Estate Roundtable after the President’s speech.
A potential government insurance fund could fill that need. “An investor would be inclined to purchase a security knowing that there was an explicit governor guarantee on at least part of the capital stack—that could help smooth out demand during disruptions to the financial system, though private capital should carry to primary,” says Rodgers.
Affordable housing advocates are also interested in the reform effort. The Corker Warner bill would also include some funding for a National Housing Trust Fund. Some of the difference between the fees paid into the government insurance fund and the amount paid out to cover loan losses could be used to support the construction of government subsidized affordable housing.
The U.S. House of Representatives also has its own proposal to completely wipe put Fannie Mae and Freddie Mac and leave to private market to take on mortgage finance—without any government guarantee of mortgage loans. Legislators have called that plan “dead on arrival,” because is seems unlike to even receive any Democratic support.
This is HUGE News but... I did not hear any news on this? Why???
I guess the press doesn't care for it.
When is this bill going to get voted????
Bernanke AIG-Related Deposition Put Off
By
VICTORIA MCGRANE
And
LESLIE SCISM
Federal Reserve Chairman Ben Bernanke won't be giving a sworn deposition Friday, as tentatively scheduled earlier, in a lawsuit challenging the federal government's 2008 decision to bail out American International Group Inc. AIG -0.59%
No date has been set, according to the Fed and lawyers for the plaintiff, a company run by former AIG Chief Executive Maurice "Hank" Greenberg that alleges the rescue package had elements that were unconstitutional.
U.S. Court of Federal Claims Judge Thomas C. Wheeler ruled in late July that Mr. Bernanke must testify in the lawsuit. Mr. Greenberg's company, Starr International Co., had requested Mr. Bernanke sit for a deposition Aug. 16.
In his ruling, Mr. Wheeler said that while the Aug. 16 date worked for the court, he would "extend appropriate deference and courtesies" to Mr. Bernanke in scheduling the deposition if that date didn't work for the Fed chairman.
Mr. Bernanke couldn't make the Aug. 16 date, a Fed spokesman said.
The U.S. government had opposed Starr's effort to take the deposition on the basis that Mr. Bernanke is a high-ranking government official and the deposition shouldn't be taken absent extraordinary circumstances. But the judge ruled that Mr. Bernanke's deep personal involvement in the decision to bail out AIG meant lower-level Fed officials would be unable to provide the same information.
http://online.wsj.com/article/SB10001424127887324769704579009401059182972.html
And I actually was questioning why people people thought there was going to be a huge jump after 2nd Q result.
Just seeing the low volume and lack of good news started questioning my mind.
Altough FNF refused the bailout funds, as you mentioned. the boys forced them... if thats the case what I am worried is that the boys can force their way to wind down FnF.
That begins with winding down the companies known as Fannie Mae and Freddie Mac. For too long, these companies were allowed to make big profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag. It was “heads we win, tails you lose.” And it was wrong.
The good news is that there’s a bipartisan group of Senators working to end Fannie and Freddie as we know them. I support these kinds of efforts, and today I want to lay out four core principles for what I believe this reform should look like.
Doesn't this mean he wants Corker and Warner bill to be passed so that he can wind down the company?
Doesn't this article still say that Obama's plan is to shut down FNF???
I am confused, what is the point of appointing Watt to look after FNF but looking to shut down FNF.
I was looking into what happened before the last run. I saw that it did jump a little from the Q1 earning but what caused it to jump from $1 to $5, end of May?
And at the House floor the majority of them are Republicans?
Do you know when the Senate will vote?
Treasury's Fannie Mae Heist
The government asked investors to shore up the two mortgage giants. Now those investors are being stiffed..
By
THEODORE B. OLSON
The federal government currently is seizing the substantial profits of the government-chartered mortgage firms, Fannie Mae FNMA -0.65%and Freddie Mac, FMCC -2.76%taking for itself the property and potential gains of private investors the government induced to help prop up these companies. This conduct is intolerable.
Earlier this month I filed a lawsuit to stop it, now known as Perry Capital v. Lew, and other lawsuits challenging the government's authority to demolish private investment are stacking up. Perhaps it's time for the government to change course.
When the nationwide mortgage crisis first took hold in 2007 and 2008, Fannie and Freddie shored up their balance sheets with some $33 billion in private capital, much of it from community banks, which federal regulators encouraged to invest in the companies. As the crisis deepened, the government determined that Fannie and Freddie also needed substantial assistance from taxpayers. Congress passed the Housing and Economic Recovery Act of 2008, and under that law the government ultimately plowed $187 billion into the companies.
Taxpayers should get their investment back, but once they do, so should the private investors who first came to Fannie and Freddie's aid. The government's scheme to wipe out these investors is bad policy and a plain violation of the law that respects private, investment-backed expectations and our constitutional protection of property rights.
Enlarge Image
CloseDavid Gothard
.When the government intervened in Fannie and Freddie in 2008, it faced a choice: It could place the companies into a receivership and liquidate them, or it could operate them in a conservatorship and manage them back to financial health. Conservatorship, the government agreed, offered the best chance of stabilizing the mortgage market while repaying the taxpayers for their investment.
Today, Fannie and Freddie are back. Last quarter, Fannie announced a quarterly profit of over $8 billion; Freddie made $7 billion.
Rather than allow private investors to share in these profits, the federal government unilaterally decided to seize every dollar for itself. Last summer the government changed the terms of its investment from a fixed annual dividend of 10%—a healthy return in this market—to a dividend of nearly every dollar of the companies' net worth for as long as they remain in operation.
So, at the end of last month, Fannie and Freddie sent a whopping $66 billion to the Treasury as a dividend. None of this money went to pay down the government's investment. Whatever amount of money the government takes out of Fannie and Freddie, the amount owed to the government is never to be reduced, meaning there can never be any recovery for private investors.
It's a splendid deal for the government: The president's budget estimates, over the next 10 years, that the government will recover $51 billion more than it invested in the companies—and that's on top of tens of billions in dividends the government took out of the companies from 2008-12. But it's a complete destruction of the investments of private shareholders.
That is unlawful for at least three reasons. First, the government's authority to revise its investments in Fannie and Freddie expired more than three years ago. Its change in the payment structure was utterly lawless.
Second, the Housing and Economic Recovery Act expressly requires the government to consider how its actions affect private ownership of the companies. The government has evidently given no attention to that requirement.
Third, that same law requires the government, operating Fannie and Freddie as a conservator, to safeguard their assets, but the government's new dividend scheme conserves nothing. In fact, the government has acknowledged it intends to facilitate the companies' ultimate liquidation. That is the opposite of conservatorship and it violates virtually every limitation that Congress imposed on the government's authority to intervene in Fannie and Freddie.
Some have suggested that this illegal extinction of private investment is justified by the extraordinary levels of support that taxpayers provided to Fannie and Freddie during the financial crisis. Certain recent legislative proposals even purport retroactively to legalize the government's cash-grab in the name of ensuring the taxpayers are repaid. But the companies' return to profitability means that taxpayers likely will be repaid in full, with interest, by the end of next year.
In these circumstances the right thing to do is to permit the companies to pay down what they owe to the government's investment so that private investors also might have the opportunity to earn returns on theirs. Yet, the "right thing" here is not just what the law requires. It may benefit the taxpayers as well. If Fannie and Freddie ever return to private ownership, the government has rights to 80% of the companies' common stock.
The government's recent cash grab squanders that opportunity, but it threatens even more serious harms. The United States has the most liquid securities markets in the world only because of its strong commitment to the rule of law and respect for private property. The government's actions here are an affront to those commitments.
Green is awesome!
We needed this after a horrible last week. Seeing Red everyday although its a penny or 10 cents down gets your confidence lower.
Hoping to have a great day today!!
I really hope the earning in 2nd quarter shows the government, media, and the public that FNF are in a safe and solvent condition and is ready to be restored.
But IMO it will not go that smoothly.
IMO The only way we see a rise in PPS is when we see the C-SHIP end/uplist. I believe that would be the way when we see this stock rise.
It will gain confidence to the public.
We know that Q2 result will be outstanding, we are seeing lawsuits against the banks and resulting in settlements.
Good news are coming out but everyone fears that the common shares will be wiped out because of the Bills that are trying to eliminate FNF.
What time is Watt's confirmation and is there any link for it?
Thanks
I believe it is August 8th
I thought about that... A lot of people are assuming that it was FNF that caused the recession in 2008. Because that is what they see on the media.
I do hope that the media will cover all the news about how the FNF are sueing the banks and people are more aware that the recession was mostly caused by the banks.
Most voters favor the ax for Fannie Mae, Freddie Mac
Jul 15, 2013, 11:33am EDT
What are we going to do about Fannie and Freddie?
A new poll finds that most Americans favor phasing out Fannie Mae and Freddie Mac, the two mortgage lending giants that were taken over the U.S. government during the financial crisis.
The survey of 1,200 likely voters was conducted by On Message Inc. for the American Action Forum, the conservative organization headed by Republican economist Douglas Holtz-Eakin. The poll included responses from conservative districts, Democratic-leaning districts and swing districts.
The poll found that 52 percent of voters favor phasing out Fannie Mae and Freddie Mac, vs. 32 percent who oppose this step.
On Message pollster Wes Anderson said most voters view the two companies with "near-toxic levels of negativity."
"Even a majority of Democrat voters are negative toward both entities," Anderson said. "Voter opinions about Fannie and Freddie and their future all but collapse when reminded about the massive nature of taxpayer bailouts they received."
The U.S. government provided $187.5 billion to the two companies during the financial crisis. Both companies now are profitable again, and have repaid most of that money to the government.
When told about the size of this bailout -- and the two companies' role in the housing bubble -- support for phasing out the mortgage giants rises to 59 percent.
The two companies, which were created by Congress, play a huge role in the mortgage market by guaranteeing and purchasing loans from lenders. This secondary market enables lenders to keep the flow of credit going.
Members of Congress, as well as voters, don't want to get stuck with having to bail out Fannie and Freddie again, however.
Sen. Mark Warner, D-Va., and Sen. Bob Corker, R-Tenn., have introduced legislation to phase out the two companies over five years and replace them with a new Federal Mortgage Insurance Corp. This new entity would sell insurance to private companies that securitize pools of mortgages. The insurance would cover 90 percent of losses.
Leaders of the House FInancial Services Committee, led by Chairman Jeb Hensarling, R-Texas, also have introduced legislation to phase out Fannie Mae and Freddie Mac in five years, and reduce the role of the Federal Housing Administration in the mortgage market. The committee will hold a hearing on this bill on Thursday.
Introduction of these bills means we're in for a vigorous debate on the government's role in the mortgage market. It's not clear how this debate will turn out -- it's hard to predict legislative outcomes for a body as dysfunctional as Congress is today.
But given the negative attitude the public has toward Fannie and Freddie, it's likely they won't be able to simply conduct business as usual in the years ahead.
Any comments?
Just a though. What will make this stock jump to $5 again or go to $10?
We know the FNF is making billions in profit.
We know that the housing market is doing better and better.
We all assume that FNF's 2nd quarter result will announce a record breaking profit.
What is stopping this stock's price fly to the moon?
Fannie Mae to sell $2 bln bills on Wednesday
July 15 | Mon Jul 15, 2013 9:33am EDT
July 15 (Reuters) - Fannie Mae, the largest U.S. home funding source, said on Monday it plans to sell $2 billion of benchmark bills on Wednesday.
The sale will include $1 billion of three-month bills, due Oct. 16, 2013, and $1 billion of six-month bills, due Jan. 15, 2014.
Settlement is July 17-18
Link: http://www.reuters.com/article/2013/07/15/fanniemae-bills-announcement-idUSL1N0FH1F220130715
So the Hensarling Bill is the same Bill as what Cocker introduced last month?
And both of the bill got the same kind of feed back?
Are there any other bills that are trying to wind down FNF???
UPDATE 2-U.S. House Republicans eye winding down Fannie Mae, Freddie Mac
Thu Jul 11, 2013 3:42pm EDT
* Lawmakers plan to move bill through committee by August
* Measure transfers gov't role in housing to private market
* Toughens Federal Housing Administration loan requirements
By Margaret Chadbourn
WASHINGTON, July 11 (Reuters) - U.S. House Republicans on Thursday unveiled draft legislation that would wind down mortgage finance companies Fannie Mae and Freddie Mac over a five-year period and sharply reduce the government's role in the market.
The sweeping proposal aims to establish a new framework for the U.S. housing finance system, a group of Republicans on the House of Representatives Financial Services Committee told reporters. The bill would also revamp the Federal Housing Administration, partly by raising down payments on FHA-backed loans and limiting the pool of eligible buyers.
"We have to take a holistic approach," the panel's chairman, Texas Republican Jeb Hensarling, told reporters. He said his goal is to limit taxpayer risk and replace the current system where "the federal government has almost a virtual monopoly."
Fannie Mae and Freddie Mac, which own or guarantee about half of all new U.S. home loans, were seized by the government in 2008 as souring loans pushed them to the brink of collapse.
The companies buy mortgages from lenders and repackage them into securities for investors, which they issue with a guarantee. They were propped up with $187.5 billion in taxpayer funds, but have since returned to profitability and have paid about $132 billion in dividends to taxpayers.
The new proposal would replace the companies with a non-profit, utility-like platform that investors would use to securitize mortgages without a government guarantee, essentially replacing the business model that has been a staple of the 30-year fixed rate mortgage.
The draft bill is an opening gambit in a fight with Democrats over the future of the nation's $10 trillion mortgage market that will likely be waged for years.
Republicans, who control the House, blame Fannie Mae and Freddie for helping to inflate the housing bubble, and they are eager to reduce the government's involvement and make sure taxpayers are never again on the hook for losses.
Democrats, who lead the Senate, agree Fannie Mae and Freddie Mac should be shuttered, but they want to maintain some sort of government backstop for the mortgage market.
Jaret Seiberg, a senior policy analyst at Guggenheim Securities, said removing the government guarantee would drive mortgage costs higher and lock some potential buyers out of the market.
"The odds are very much against this bill becoming law. Not only is the housing lobby influential, but voters care about their ability to get mortgages and purchase homes," he said.
Last month, a bipartisan group of lawmakers in the Senate introduced a bill that would abolish Fannie and Freddie within five years and replace them with a new "public guarantor." The bill would still maintain a federal role in the market.
FHA DOWNPAYMENTS WOULD RISE
In addition to the new securitization platform, the Republican measure would create a legislative framework and regulatory structure for so-called covered bonds, which would be backed by mortgages but which would remain on the issuer's balance sheet, unlike the mortgage-backed securities issued by Fannie Mae and Freddie Mac.
The lawmakers also included language to repeal a requirement under the Dodd-Frank Wall Street reform law, known as the "qualified residential mortgage" rule that will set risk-retention standards. It would also delay the implementation of the so-called qualified mortgage rule, which requires lenders to verify borrowers' ability to repay their loans and offers legal shields for lenders who follow certain guidelines.
They also proposed several changes to reform the Federal Housing Administration. The FHA, which insures about a third of all U.S. mortgages, has faced mounting losses from defaults on mortgages it guaranteed from 2007-09 as the housing bubble deflated and may soon exhaust its cash reserves.
The bill, which the lawmakers plan to move through the House Financial Services Committee before the August recess, would increase down payment requirements for FHA loans from the current 3.5 percent minimum up to 5 percent for certain borrowers.
The FHA does not make loans itself, but offers private lenders guarantees against homeowner default.
Only first-time buyers and moderate-income borrowers would be eligible for FHA-backed loans under the bill. FHA loans are often taken out by those who cannot qualify under the stricter down-payment and credit-score requirements of Fannie Mae or Freddie Mac.
Hensarling is shepherding the bill, which is cosponsored by Republican Representatives Scott Garrett of New Jersey, Randy Neugebauer of Texas, and Shelley Moore Capito of West Virginia.
When can we expect the Q2 earning to be announced?
When are they releasing the Q2 results to the public?
Do you know the date when they announce their earning for Q2?
If it becomes a private company what happens to the common shares? Do we lose our money?