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Skeptic--True that!!
Sure, he could.....but not if the big banks, Wall Street, Senate R's, MBA, and the rest of the MAGAs oppose that. (See TikTok!)
Remember, F&F (not so much the latter), capably run and not FHFA-constrained, have a history of removing "junk fees and other costs" from the mortgage transaction, on which other industry players get fat.
Yes, but my predicate is desperate officeholders, occasionally, do desperate things to retain those jobs, calling it "good/needed public policy."
My horrible BAD re Bradford comment.
In my response to another poster commenting on Bradford," I dropped the word "not."
Referring to Mr. Bradford, I meant to say, "It would NOT be the first time he was wrong."
My opinion, only!
Trump's letter to Rand Paul means nothing. Another time, another era. If asked, I am sure Trump, today, would cavil and not suggest any true GSE policy.
Also, forget Ms. Thompson. Her GSE thoughts matter little since Treasury and the White House will justify any GSE action they take.
Respectfully, it would be the first time he was wrong.
Sorry for you, that really sucks. But it's happening all over.
IMO, despite their positive rhetoric about "helping low and moderate-income buyers get financing," they won't be effective with the GSEs hamstrung in Conservatorship.
I can tell you, with great confidence, that idea--along with the multiple reasons for it, both political and economic--was given to senior WH officials several months ago.
And they produced NADA, except to give us, Sandra Thompson, with a far better candidate waiting there expecting to be named
You understand the statement, "I don't buy green bananas, anymore!"
I appreciate your counseling but too many conflicting GSE agendas in this Admin, from people who have ignored the past few very positive years.
LB--Biden Admin doesn't support GSE exit from "Conservatorship," offering the thinnest of statements and rationales.
Wait, that's my affliction you can't have it, too,
Lael Brainard, Biden's Economic Policy advisor, announced at a speech today that the White House was not interested in supporting ending GSE Conservatorship and that it planned to concentrate on helping lower and middle-income American families.
That's great, Lael!
But, which families--by charter--do you think Fannie and Freddie GSEs support?
Blame S. Lael Brainard (and likely Yellin) for this cash slaughter.
It certainly wasn't anything about the business or operations.
I am sure she heard from some financial services interests too, both of them, worried that the GSEs were getting some wind in their financial sales.
Of course, she couldn't offer a justification for leaving them in Conservatorship for the past 15+ years.
Vike--You are correct, from a business success standpoint, the GSEs have been marveling at low-risk management/revenue.production, etc.
But, as I've droned on and on, the "GSE Shit Wall" has nothing to do with business. It's all GSE politics.
Just remember that commercial banks, mortgage banks, and other financial service giants (most in the DJT posse) don't want to see the GSEs out of Conservatorship.
Mnuchin backed off, after making positive early noises re F&F, but bagged it. And I don't see Trump doing anything.
Plus, the MAGAs in Congress would kill the GSEs if they had a chance.
As we used to say 70 years or more ago, "You betchum, Red Ryder." (Old cowboy character and his young Indian sidekick.)
Most appraisals are based on the potential lender, who has to underwrite the loan, and the appraiser, who often is--but not always--part of one of the two Realtor representatives involved.
Despite all of the rhetorical butt-covering, in the past, it was not uncommon for the appraiser to ask the lender what it was willing to lend on the property, and then--" "voila"--the appraiser's estimation would comport with it.
Easier when property values were more stable, but Iikely some variation still occurs today.
Which part? Do you mean all of the elements in the mortgage finance industry supporting over-priced services and junk fees??
And overpay for it, the old way.
Fannie's will come a lot cheaper, which is why the industry is so pissed.
Now go after the inflated cost of appraisals, Fannie!!!
See Andrew Ackerman in the WSJ.
Decent logic here from Joe.
Weird, we are talking GSE stocks, etc.. and Trump is in Mar-a-Lago meeting with another Putin-loving European thug.
Must be birds of a feather. What can Victor Orban offer the US, except to quick making trouble for Ukraine and butt out?
Guido, If I am wrong (since that happens to old men), I'll apologize, but--as part of HERA--I believe that the Treasury, at its option, has warrants to buy 79.9 % of both GSEs' stock.
If it happens, it might be as part of a larger end to "Conservatorship."
Depending on the F&F share prices should Treasury exercise those warrants, it would generate over $100 billion.
The higher the common price, the more Treasury would get.
Among other things, the common stock to jump (maybe double or triple).
Some more positive words from this WH, given the GSE fate, is all about politics.
Good for the GSEs, having nothing to do with Title Insurance.
Do you mean structural action or common stock price?
It or something else jumped the Fannie Ps today.
I will, once more details are in, but ironically, Biden's stemwinder and very successful and strident speech tonight may limit what happens to what they did today.
As with everything about the GSEs, it always been about politics, and I've been retired formally for almost 20 years.
I was surprised by today's action but when Fannie preferred jumped 83%, I assumed something might happen today/tonight.
It was a small administrative fix (as compared to legislative), since as we all have seen, the House and Senate--standing outside--would/couldn't agree if it was night or day.
If Biden continues to feel threatened by Trump. his Admin may do more to open up the GSEs, including something on ending Conservatorship.
The bizarre thin is ending the "C" would bring in $100 Billion or more TODAY when selling Treasury's 79% share of all GSE stock, If the price of common goes highter Treasury's return is even greater.
You could be right, but after 15 years, this is the happiest I've been.
Since it's the first White House in years to say anything positive about the GSEs.
See my post tonight.
EP--Don't miss the forest for the trees. This is good news, since it recognizes another value the GSEs can provide.
This is the first time that the Biden Admin has done anything positive for the GSEs (despite being approached to do so by several prominent elements) and the action, as noted, was taken despite FHFA's Thompson objectives.
Someone must have gotten tipped, since the Fannie Pref went up 80% today, along with a few pennies in the common.
Interesting to see how the Street handles it tomorrow.
Excellent News; FHFA told by WH to allow Fannie to offer title insurance--in lieu of industry-provided version--on some loans it guarantees, cutting home ownership costs.
Details soon to follow.
(Might explain why PFs were up today.)
News story in WSJ?
I suspect that Calabria was a WH choice that Mnuchin accepted since lots of things were going on in "Mnuch's" career then, and who ran FHFA wasn't one of them.
However, it was Mnuchin who failed to act on his tease to release the GSEs from Consevatorsip.
Not that I know about. But would love for it to happen.
I thought Katy did a good job, David a friend/colleague, and Joe hs not always been pro-GSE.
Katy did a good job; David was a friend, semi-colleague, who often was on the other side of me on GSE issues, and the WSJ's Joe Light was not always, if ever, pro-GSE.
Having said all that I can find nobody in DC who believes the Biden admin gave any hints or inclinations about ending Conservatorship. And I've tried very hard to find anything.
I've been wishing and hoping for an administrative route (Executive action not involving legislation) since shortly after Hank Paulson lied in 2008 and then drove "Conservatorship."
But the result has been disappointing.
I have no great hopes for Trump doing anything (because of big bank opposition).
If Biden feels enough political heat he may see ending conservatorship as a major housing finance boon (which it would be), for which he rightly could take credit.
Congress's great dysfunction should rule out asking it to do anything, save bless the right GSE administrative action (which should include replacing the very incapable Director Sandra Thompson).
You know Calabria is lying when his lips move.
His CATO-flavored disastrous and misapplied capital requirements are hugely flawed.
Sandra Thompson, Calabria's lame successor, continues to stand by Calabria's misapplied capital requirements, either because she doesn't comprehend them or supports them.
Anyone who pretends Ms. Thompson is a "Houser," doesn't understand the word'ing because his lips move!!s meaning!
This factoid from poster [i]stockanalyze never should be forgotten.
"(O)h I forgot, we can’t even get the paltry sum won in jury trial let alone billions. they control all branches including media. wishful thinking."
It's a key reason for the huge height in DC for the "GSE Shit Wall."
Unless you are talking about a fire in Texas or snow in the California mountains, I wouldn't bet on it.
Too many people in DC--inside and outside the Biden Administration--don't want to see that (even though it would boost Treasury's warrants value).
The GSE Shit Wall is very high!
Unless you are talking about a fire in Texas or snow in the California mountains, I wouldn't bet on it.
Too many people in DC--inside and outside the Biden Administration--don't want to see that (even though it would boost Treasury's warrants value).
The GSE Shit Wall is very high!
KThomp is absolutely correct.
The GSE games we've been forced to watch are all about politics, with very little about good business practices or anything else interfering with those mostly bad political intentions.
I would venture to say Fannie and Freddie only exist today because the banks and the government still need them. The banks for liquidity and the Feds if the banks foul up and quit lending.
Plus the conservatorship arrangement--through federal taxes and ridiculous fees--brings in lots of money for the Treasury, available for any spending an Administration wants to hide with a cover.
Thompson would have made better history if she slammed the gavel to her head.
The Bank System is useless and a farce and FHFA understands that. I used to say that the Home Loan Banks are an employment service for former S&L employees. But, with many old those folks, passing on but the employment slot staying put, it's just become a bunch of good job titles/comp and little else.
Everything the System does can be done better and faster by the Treasury directly or the Fed.
The System used to justify its existence by saying the members heavily lent for housing; but then its members became banks and those companies had more lucrative options, i.e. commercial loans, although they still do some home mortgage lending, but not as much as their progenitors, ironically that history provides the Bank System's "cover story.".
Truth is, many are at doing family and personal chores.
FHFA has a very relaxed work-from-home policy.
Yep, the only way it happens this year!!
The current Congress cannot agree on whether it is night or day outside....and that's when they are standing on the Capitol steps!!