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It was an Executive Session, meaning closed door. No video was going to be provided, even if others gave that impression.
Regardless, good to see MC get thru committee and now on to the floor - hopefully within two weeks...maybe even this Friday.
Bam, nothing pertaining to FnF, unfortunately.
2019. A few hours ago....THIS morning.
Corker says shareholders should be treated FAIRLY!
Here are his exact words on that topic.....
...We have a lot of interest out there, lets face it. I mean we have people, we have shareholders, we have shareholders in these entities today. And, um, I understand some of the rubs that have existed there. I think we have an opportunity though to, to really deal with ALL of the interests in a manor that is a FAIR, but also move our nation ahead in a manor that we don't have these two behemoths that a basically are 100% right now, ah, backed by the federal government and I hope we'll get there.
Actually, they are much closer to 50/50. More specifically, based on a previous volume and pps trend analysis, I'd say 57/43 preferred/common. If Pfds get par and commons only go to $15, then it's more like 47/53 preferred/common, on a value basis.
Actually it's a bunch of shares totaling more than 0.5% of their holdings.
More importantly, if their little coin flip into the wishing well - as you seem to put it - pans out, their FnFs holdings will represent (roughly) their second largest holding (out of 399 co's), right behind number one Amazon. Yep, you guessed it, that Amazon, you know, the one no one's ever heard of....
While the volume wasn't there to take us where I thought we would end the week, I'll take the baby steps for now. I agree that we are due for a few good months, my friend.
Time for power hour to close the week out. Looking for a run to $3.40+. Let's see what happens.
C-Bull, I don't know if the current (almost equal) Freddie share price is reflective of an anticipated Q3 earnings report, but Freddie will most definitely out earn Fanny if only due to the latest Bank settlements of around $5B, of which, I believe, Freddie will receive more than $4B. I wouldn't at all be surprised to see a FnF combined Q3 earnings in the $12-$14B range come the first week of November. Where (and how much of) that money goes is the $64K question.
Treasury Secretary Mnuchin is speaking at the #PROSUMMIT around 4 p.m. today. Live stream here
I know his agenda is tax reform, but hopefully GSEs will come up as well.
POLITICO Pro article. No link, unless you $$$$ubscribe.
BEST ARTICLE IN YEARS -- Democrats, RNC seek new life for Fannie and Freddie
By Lorraine Woellert 09/13/2017 07:36 PM EDT
Senate Democrats urged Treasury and the Federal Housing Finance Agency to allow Fannie Mae and Freddie Mac to build cash to prevent another taxpayer bailout of the mortgage giants.
The Democratic appeal came on the heels of a policy shift by the Republican National Committee, which last month adopted a resolution calling for recapitalization of the companies, which have long been vilified by free-market and fiscal conservatives.
Combined, the positions could signal a shift in thinking on the companies, which are in limbo after receiving a $187 billion government bailout during the housing collapse.
After being targeted for elimination in the wake of the subprime lending crisis, Fannie and Freddie have largely returned to health and consistently generate revenue for taxpayers. While under government conservatorship, they've sent nearly $273 billion in earnings to the Treasury, money that has been used to help drive down the budget deficit. But their capital will be exhausted by the end of this year as part of their bailout deal, raising the risk that they'll need another injection of taxpayer aid.
In a Sept. 13 letter to Treasury Secretary Steven Mnuchin and FHFA Director Mel Watt, Senate Democrats said the government-sponsored enterprises, or GSEs, should be allowed to amass capital to avoid another bailout.
"We are simply requesting that the GSEs be permitted to build capital," the senators wrote. "Protecting taxpayers does not limit the power of Congress to take up reforms."
The letter was signed by Senate Banking Committee Democrats Sherrod Brown of Ohio, the panel's ranking member, Jack Reed of Rhode Island, Bob Menendez of New Jersey, Brian Schatz of Hawaii, Chris Van Hollen of Maryland and Catherine Cortez Masto of Nevada.
Last month, the RNC went a step further, saying the government's stake in the companies could be sold for a profit.
"The Republican National Committee recognizes that no financial institution in the United States can safely operate without adequate capital, and that taxpayers will not be sufficiently protected until Fannie Mae and Freddie Mac are permitted to rebuild equity capital," the committee wrote.
Taxpayers can generate an estimated $100 billion in "additional cash profits" if Treasury sells the 79.9 percent of the companies the government seized during the housing collapse, the RNC wrote.
That position is an abrupt departure for the party. Just last year, the RNC questioned the value of the companies, saying they were based on "corrupt business models".
"The utility of both agencies should be reconsidered as a Republican administration clears away the jumble of subsidies and controls that complicate and distort home-buying," the RNC wrote in its 2016 platform.
Both the RNC resolution and the Democratic letter cited the position of a GSE reform coalition that includes the Independent Community Bankers of America, National Urban League, National Community Reinvestment Coalition and others.
"There is a bipartisan consensus that allowing Fannie and Freddie to operate with no capital is irresponsible," said Josh Rosner, managing director at Graham Fisher & Co. "There's also a consensus that the GSEs shouldn't be released without further reforms, which suggests agreement that the GSEs should ultimately be released."
500K FNMA buy followed by a 450K buy. Look for a run today.
Cmdr, appreciate you keeping us updated on any insight you receive from Da Judge about the meeting today.
Hvp123, good to see you around and thanks for the document details!
INVESTORS UNITE -- More Government Contradictions, Questions and Secrecy
August 14, 2017
A few more documents relevant to machinations about the Net Worth Sweep have been made public and they add to an already compelling case of a disconnect between private deliberations and public statements about the policy shift on the conservatorship of Fannie Mae and Freddie Mac five years ago this week.
On August 14, 2012, officials at the Federal Housing Finance Agency (FHFA) discuss via email the finances of Fannie and Freddie as preparations were being finalized for the public announcement of the Net Worth Sweep. It was noted that the subject of “…re-recording certain deferred tax assets that had been written off“ based on the view that [the Companies] were going to be profitable going forward.” There was a question about the logic of this given the fact that the Sweep was meant to “demonstrate wind down” but the assumption was that there would be additional discussion of this matter down the road.
What is interesting about this exchange is that it directly contradicts the statement of Mario Ugoletti, a senior FHFA official who acted as liaison with Treasury, in a previously unsealed court document in which he said, “…[a]t the time of the negotiation and execution of the Third Amendment, the Conservator and the Enterprises had not yet begun to discuss whether or when the Enterprises would be able to recognize any value to their deferred tax assets.”
The question of how the deferred tax assets were booked has a direct bearing on the decision to implement the Sweep. When the Sweep was under consideration in the summer of 2012, it was clear that big profits were on the way for the enterprises, creating deferred tax assets worth tens of billions of dollars. Under the Housing and Economic Recovery Act (HERA), FHFA was to “preserve and conserve” the assets of Fannie and Freddie. But instead of applying the deferred tax assets to the GSEs’ balance sheets, the companies were required to make a cash payment to Treasury. This made them appear to be in weaker shape than they were, thus helping to create a rationale for the Sweep.
The latest email exchange to come to light further demonstrates government officials recognized there was an accounting feature to exploit. Recall that documents unsealed a few weeks ago revealed officials were aware that the treatment of the deferred tax assets was bound to raise questions because there was no policy rationale for not letting Fannie and Freddie retain them for accounting purposes.
The second of the three newly released documents is part of an email exchange from June 2012 that shows Fannie CFO Susan McFarland had let officials at FHFA know that Fannie was projecting $5 billion in earnings for the second quarter of 2012 and that “it is possible that [Fannie] may take a negative provision of $1 to $2 billion in the reserves (this would increase income) due to lower than expected credit losses.”
A third document is an April 2012 presentation Fannie Mae officials prepared for the FHFA. What is interesting about this one is that it is so uninteresting. It is a dry, factual presentation about finances. Yet somehow, the government wanted to keep it under lock and key. That level of secrecy seems odd, unless officials were trying to hide something from shareholders and citizens.
To find more Investors Unite blogs click here.
About Investors Unite: Formed by Tennessee activist investor and CapWealth Advisors Chairman and CEO, Tim Pagliara, Investors Unite (www.investorsunite.org) is a coalition of private investors from all walks of life, committed to the preservation of shareholder rights for all invested in Fannie Mae and Freddie Mac. The coalition works to educate shareholders and lawmakers on the importance of adopting GSE reform that fully respects the legal rights of Fannie Mae and Freddie Mac shareholders and offers full restitution on investments.
P.O. Box 2591 | Brentwood, TN 37024 US
Wow, in conference call, Freddie's CEO basically say's 'we have already changed our business of the flawed GSE model to a thriving financial business.'
Great to hear!
Big change in Freddie's 2Q results language on page 11...If the Conservator declares a senior preferred stock dividend equal to our dividend requirement and directs us to pay it before September 30, 2017, we would expect to pay a dividend of $2.0 billion by September 30, 2017.
www.freddiemac.com/investors/financials/pdf/2017er-2q17_release.pdf[tag]Freddie Mac Reports Net Income of $1.7 Billion and
Comprehensive Income of $2.0 Billion for Second Quarter 2017[/tag]
WOW! Rosner and Bove just knocked it out of the park on CNBC!
I will be joining the fine folks of @CNBCClosingBell at about 4:48 today.
joshua rosner? @JoshRosner · 5m5 minutes ago
Count me in with Captain Obvious, I mean America....lol
It is almost impossible to be a real, long-term investor in FnF (that posts on/reads FnF message boards) and have no idea who Josh Rosner is...just saying.
Yep, how convenient. Christ, Crapo is reading "his thoughts on reform" right from the MBA plan. What a joke. lol
Cmdr, thanks again for your continued updates from Judge Steele. I'm guessing everyone here appreciates them as much as I do. Hopefully, we hear some great news from the Del. courts this summer.
Regarding the 4:50PM panel on GSE Conservatorship and Reform....
Bob Ryan is the voice we need to hear. The other four are just talking their books. Ryan is Watt's right-hand man and he will communicate the FHFA's thoughts and plan of action, or whatever UST is telling them to say. Ryan is guarded and smart, so we will most likely have to read between the lines. It will be interesting to see how close his comments align with Craig Phillips' from the UST.
Text of Watt's full testimony here....
Statement of Melvin L. Watt, Director, FHFA, Before the U.S. Senate Committee on Banking, Housing, and Urban Affairs
"The Status of the Housing Finance System After Nine Years of Conservatorship"
5/11/2017
Chairman Crapo, Ranking Member Brown, and members of the Committee, thank you for your invitation for me to discuss the critically important and timely hearing subject "The Status of the Housing Finance System After Nine Years of Conservatorship" and to answer any questions you may have about the work we are doing at the Federal Housing Finance Agency (FHFA).
As the members of this Committee are well aware, since September 6, 2008, Fannie Mae and Freddie Mac (the Enterprises) have been operating in conservatorships under the direction and control of FHFA and with backing of the U.S. taxpayers with explicit dollar limits as set out in the Senior Preferred Stock Purchase Agreements (the PSPAs) with the U.S. Department of the Treasury. As a result of prior Enterprise draws totaling $187.5 billion against the PSPA commitments, the PSPA commitment still available to Fannie Mae is now limited to $117.6 billion and the commitment still available to Freddie Mac is $140.5 billion. Additional draws will reduce these commitments further; however, dividend payments do not replenish or increase the commitments under the terms of the PSPAs.
September 6 of this year will mark the beginning of the tenth year that the Enterprises have been in conservatorships. These conservatorships have been unprecedented in scope, complexity, and duration, especially when you consider that the Enterprises support over $5 trillion in mortgage loans and guarantees. Since January 6, 2014 when I was sworn in as Director of FHFA, the conservatorships of the Enterprises have been under my direction.
I pledged to the members of this Committee during my confirmation hearing that I would carry out my responsibilities as Director in accordance with the statutory mandates given to FHFA as regulator and conservator. I have consistently tried to do just that. I have found that FHFA and the Enterprises operate with responsibilities that make it impossible to satisfy everyone and sometimes make it impossible to satisfy anyone. However, I believe that most stakeholders would agree that we have responsibly balanced and met FHFA's multiple statutory mandates to manage the Enterprises' day to day operations in what I often refer to as "in the here and now." These statutory mandates obligate us to:
•Conserve and preserve the assets of the Enterprises while they are in conservatorship;
•Ensure that the Enterprises provided meaningful assistance to the millions of borrowers who struggled to save their homes in the midst of the economic and housing crisis, as required in the Emergency Economic Stabilization Act; and
•Oversee the prudential operations of the Enterprises and ensure that they continue to carry out their on-going statutory missions in a safe and sound manner; in a manner that fosters liquid, efficient, competitive, and resilient national housing finance markets; and in a manner that is consistent with the public interest.
Many Reforms of the Enterprises Have Taken Place Through Conservatorship
I have said repeatedly, and I want to reiterate, that these conservatorships are not sustainable and they need to end as soon as Congress can chart the way forward on housing finance reform. However, it is important for all of us to recognize that the conservatorships have led to numerous reforms of the Enterprises and their operations, practices, and protocols that have been extremely beneficial to the housing finance markets and have reduced exposure and risks to taxpayers.
It is critically important for the members of this Committee to be well aware of these reforms because you will have the responsibility to ensure that the reforms are not disregarded or discarded because of assertions some will make that the Enterprises now are the same or mirror images of the Enterprises that FHFA placed into conservatorship almost nine years ago. I can assure you that such assertions would be unfounded.
We have reported extensively on some of the important reforms we have made and on our conservatorship priorities in our 2014 Conservatorship Strategic Plan; in our annual scorecards, including the 2017 Scorecard; and in our regular status updates, including three reports released earlier this year – 2016 Scorecard Progress Report, Credit Risk Transfer Progress Report, and An Update on the Implementation of the Single Security and the Common Securitization Platform.
Let me highlight some of the most important changes and reforms that have taken place during the conservatorships.
1. Board leadership and management: When the Enterprises were placed into conservatorship, FHFA replaced most members of their boards of directors and many senior managers. Both through conservatorship and through our on-site regulatory oversight of the Enterprises, FHFA has required Fannie Mae and Freddie Mac to make a number of changes to improve risk management, update many of their legacy systems, prioritize information security and data management, and better address other areas of operational risk. FHFA has also taken steps to prohibit certain activities, such as lobbying, by either Enterprise. The Enterprises board of directors and senior management have taken great strides to implement these improvements in coordination with FHFA.
2. Alignment of certain Enterprise activities: While some aspects of their pre-conservatorship competition resulted in negative consequences or in a race to the bottom, FHFA has aligned many practices and policies on which the Enterprises are no longer allowed to compete, such as loss mitigation standards and counterparty eligibility standards. However, based on expectations established in conservatorship and regularly emphasized by FHFA to the Enterprises' boards and managements, we expect them to compete vigorously to find and implement innovative ways to make the housing finance markets more efficient and liquid, on customer service provided to Enterprise seller/servicers, and on the quality of their business practices.
3. Sound underwriting practices: The Enterprises are required to emphasize sound underwriting practices in their purchase guidelines, and these practices facilitate responsible access to credit and sustainable homeownership for creditworthy borrowers. The Enterprises' serious delinquency rate on single-family loans is at its lowest level since May 2008.
4. Appropriate guarantee fees: Guarantee fees have been increased by two and a half times since 2009. The guarantee fees are set to reflect the cost of covering credit losses in the event of economic stress or a housing downturn and the administrative expenses of running the companies. While the Enterprises cannot retain capital under the PSPAs, we also set their guarantee fees under the assumption that they are earning an appropriate return on capital. FHFA regularly reviews the Enterprises' guarantee fees to ensure that they remain at appropriate levels.
5. Smaller portfolios for core business purposes: The retained portfolios of the Enterprises have been reduced over sixty percent since 2009 and both Enterprises are ahead of schedule to meet the 2018 maximum portfolio limits established in the PSPAs. The Enterprises' multiyear retained portfolio plans to achieve these reductions have focused on selling less liquid assets and investment assets, in addition to prepayments that have occurred over time. Their retained portfolios are now focused on supporting the core business operations of the Enterprises, including aggregation of loans from small lenders to facilitate securitizations and holding delinquent loans in portfolio so investors can be made whole, servicers can facilitate loan modifications, and borrowers can stay in their homes whenever possible.
6. New single-family credit risk transfer programs share credit risk with private investors: The Enterprises have developed and continue to refine credit risk transfer programs that transfer a meaningful amount of credit risk to private investors on at least 90 percent of their targeted, fixed-rate, single-family mortgage acquisitions. The Enterprises are also developing their single-family CRT programs with the objective of cultivating a mature and robust credit risk transfer market, including by building and expanding a diverse investor base that will increase the likelihood of having a stable CRT market through different housing and economic cycles.
7. New securitization infrastructure: Through a joint venture formed by the Enterprises under FHFA's direction, the Common Securitization Platform (CSP) is now operating and all of Freddie Mac's existing single-family, fixed-rate securitizations are being processed using the CSP. All parties are now well down the multiyear path toward the CSP becoming the infrastructure used by both Enterprises to issue a common single mortgage backed security. When fully implemented, we believe these changes will facilitate deeper liquidity in the housing finance market, support the to-be-announced market, and eliminate costly trading differences between the Enterprises' securities. The Enterprises are developing the CSP with an open architecture such that it will be usable by other market participants.
8. Responsible access to credit supporting sustainable homeownership: The Enterprises have worked closely with FHFA on a number of initiatives designed to support responsible access to credit and sustainable homeownership. For example, they undertook a multiyear process to revamp their Representation and Warranties Framework to reduce uncertainty and support access to credit throughout the Enterprises' existing credit boxes. We are also requiring the Enterprises to conduct analyses about access to credit barriers and to develop pilots and initiatives to improve access to credit in a safe and sound manner. Another recent area of focus has been implementing the Enterprises' statutory duty to serve three underserved markets – manufactured housing, affordable housing preservation, and rural housing. The Enterprises posted their first draft Duty to Serve Plans for public input just this week.
9. Multifamily market liquidity and affordable rental housing: The Enterprises' multifamily programs, which performed well during the crisis while other parts of the housing market struggled, continue to share a substantial amount of credit risk with private investors and continue to provide needed liquidity for the multifamily market with major emphasis on affordable rental housing and underserved markets.
10. Loss mitigation, foreclosure prevention, and neighborhood stabilization: The Enterprises have worked with FHFA to develop effective loss mitigation programs that minimize losses to the Enterprises and allow borrowers to avoid foreclosure whenever possible. This has included aligning the Enterprises loss mitigation standards and developing updated loan modification and streamlined refinance products to follow the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP). The Enterprises are also effectively pursuing efforts to stabilize neighborhoods, including through the Neighborhood Stabilization Initiative.
11. Level playing field for lenders of all sizes: The Enterprises have eliminated volume-based discounts for larger lenders, which has leveled the playing field for lenders of all sizes – small, medium and large. This new approach, along with supporting the ability of small lenders to purchase loans through the cash window, has significantly increased the percentage of Enterprise acquisitions from smaller lenders during conservatorship.
Congress Urgently Needs to Act on Housing Finance Reform
While many reforms of the Enterprises' business models and their operations have been accomplished through conservatorship, FHFA knows probably better than anyone that these conservatorships are not sustainable and we also know that housing finance reform will involve many tough decisions and steps that go well beyond the reforms made in conservatorship. So I want to reaffirm my strong belief that it is the role of Congress, not FHFA, to make these tough decisions that chart the path out of conservatorship and to the future housing finance system.
Among the important decisions Congress, not FHFA, will need to make as part of housing finance reform are the following:
•How much backing, if any, should the federal government provide and in what form?
•What process should be followed to transition to the new housing finance system and avoid disruption to the housing finance market, and who should lead or implement that process?
•What roles, if any, should the Enterprises play in the reformed housing finance system and what statutory changes to their organizational structures, purposes, ownership and operations will be needed to ensure that they play their assigned roles effectively?
•What regulatory and supervisory structure and authorities will be needed in a reformed system and who will have responsibility to exercise those authorities?
I reaffirm my belief that it is the role of Congress, not FHFA, to make those housing reform decisions and I encourage Congress to do so expeditiously.
FHFA Must Continue to Meet Its Obligations While Housing Finance Reform Takes Place
The final thing I want to discuss is the most significant challenge FHFA faces as conservator while Congress continues to move ahead on housing finance reform. I first discussed this challenge publicly in a speech I delivered at the Bipartisan Policy Center on February 18, 2016. The challenge is that additional draws of taxpayer support would reduce the amount of taxpayer backing available to the Enterprises under the PSPAs and the foreseeable risk that the uncertainty associated with such draws or from the reduction in committed taxpayer backing could adversely impact the housing finance market. Unfortunately, the challenge is significantly greater today than it was last year and will continue to increase unless it is addressed. Let me explain why that is so.
At the time I delivered my speech at the Bipartisan Policy Center in 2016, each Enterprise had a $1.2 billion buffer under the terms of the PSPAs to protect the Enterprise against having to make additional draws of taxpayer support in the event of an operating loss in any quarter. Under the provisions of the PSPAs, on January 1, 2017 the amount of that buffer reduced to $600 million and on January 1, 2018 the buffer will reduce to zero. At that point, neither Enterprise will have the ability to weather any loss it experiences in any quarter without drawing further on taxpayer support.
This is not a theoretical concern. GAAP accounting for any number of non-credit related factors in the ordinary course of business regularly results in large fluctuations in Enterprise gains or losses. Some of these non-credit related factors include interest rate volatility; the accounting treatment of derivatives used to hedge risks; reduced income from the Enterprises' declining retained portfolios; and the increasing volume of credit risk transfers which, while supporting our objective of transferring risk and opportunity to the private sector, also transfers current revenues away from the Enterprises. We also know that a short-term consequence of corporate tax reform would be a reduction in the value of the Enterprises' deferred tax assets, which would result in short-term, non-credit related losses to the Enterprises. The greater the reduction in the corporate tax rate, the greater the short-term losses to the Enterprises would be. In addition to the regular and on-going prospect of non-credit related losses, even minor housing market disruptions or short periods of distress in the economy could also cause credit-related losses to the Enterprises in a given quarter.
Like any business, the Enterprises need some kind of buffer to shield against short-term operating losses. In fact, it is especially irresponsible for the Enterprises not to have such a limited buffer because a loss in any quarter would result in an additional draw of taxpayer support and reduce the fixed dollar commitment the Treasury Department has made to support the Enterprises. We reasonably foresee that this could erode investor confidence. This could stifle liquidity in the mortgage-backed securities market and could increase the cost of mortgage credit for borrowers.
FHFA has explicit statutory obligations to ensure that each Enterprise "operates in a safe and sound manner" and fosters "liquid, efficient, competitive, and resilient national housing finance markets." To ensure that we meet these obligations, we cannot risk the loss of investor confidence. It would, therefore, be a serious misconception for members of this Committee, or for anyone else, to consider any actions FHFA may take as conservator to avoid additional draws of taxpayer support either as interference with the prerogatives of Congress, as an effort to influence the outcome of housing finance reform, or as a step toward recap and release. FHFA's actions would be taken solely to avoid a draw during conservatorship.
Thank you again for the opportunity to address this Committee. Please be assured that FHFA and the Enterprises stand ready to assist the Committee in any ways we are asked to do so. I look forward to answering your questions.
Contacts:
Stefanie Johnson (202) 649-3030??? / Corinne Russell (202) 649-3032
The amendment (#3, I believe) allows FHFA the ability to apply privileges to information it sees fit. So, basically the amendment seems to give FHFA the tools it's already using to fight us in court. Did anyone else hear it that way?
TIA
Yep, both reasons are right on target. Pags will never give up though and I'm sure da "Judge" will be right there with him.
Cmdr, thanks for the fast info from Judge Steele and for keeping us updated throughout this process.
Lets go Judge Steele and Pags!
This interview was pre-recorded, so if Mnuchin said anything of real importance about FnF we would probably already see it in the trading today. Just my take.
Josh Rosner interview on Bloomberg today...What Will Happen to GSEs Under the Trump Administration? Not sure if it has been previously posted, but it's very good.
Josh Rosner interview on Bloomberg today...What Will Happen to GSEs Under the Trump Administration?
It was obvious, after his first public interview, as Director of FHFA, Watt knew very little about it or his position. Similarly, but more obvious, was when Juan Castro did his first interview after being put in his HUD position, that he had no, I mean zero, clue what he was doing.
It still amazes me how politics and our government works. Many folks are put in powerful positions, they obviously have no business being in, base solely on how they can help their political party in the near and long-term future. It really has little to do with what's best for the American citizen anymore.
You sure about that?
While I'm sure Watt would never actually do this, as I and many legal professionals read it, Watt was granted extraordinary powers under HERA. And, my comment was to make that point. The three judges did not argue whether HERA is unconstitutional, as it was not there place in this case, but the majority did basically say that FHFA, under HERA, is granted unbelievable powers to act as it's director see's fit.
No?
Yes, and as we all know, as of yesterday and based on HERA, Watt can take all of that money back from Mnuchin and go buy himself his own personal island somewhere and, legally, nothing can be done about it.
Correct?
Remember the Govt needs to win against all claims and we only needed to win against one....and we did!
It is my understanding the TH717.com blog is not the same as the timhoward717.com blog, although, just like the latter, it still might be garbage.
I believe the second blog created, TH717.com, is a possible attempt by Glen Bradford (or someone using his 'writing' style) to take advantage of the timhoward717.com blog's recent demise. I admit, I have only recently skimmed the TH717.com latest post, but it looks very much like the work of Glen Bradford. Most of his SA articles are very similar. They have little original information and mostly copy/paste/insert recently released bits of info from credible sources, all tied together with an obvious statement or two from the poster (much like his so-called "book" he tried to peddle - a real stretch of the term). If the TH717 site is run by Glen, that's not to say it is good or bad, it's just that it is what it is....a place that just regurgitates others' info, but with an attempt for the poster to somehow have importance, or a role, within this GSE saga. The fact that any site tries to draw viewers by using semblance to important players/names, somewhat automatically discredits said site, for me at least.
Imo, the only GSE blogs of real importance are the real Tim Howard's Howardonmortgagefinance.com, Bill Maloni's blog and David Fiderer's blog (also GSE Links - but not a blog). All three of those gentlemen have a great understanding of the GSE's and housing finance as it relates to our government.
Like many of you here and elsewhere, I'm a long-term FnF investor trying to educate myself as much as possible on the subject matter. Like some, I've been at this long enough to feel like I can separate the wheat from the chaff, so to say.
Hopefully, some find this insight helpful.
Mods, please sticky this GSE Thought Map!
GSE Thought Map
Obiterdictum, thank you very much for creating this.
It's one of the best visual tools explaining the players involved within the "web" of this investment that I've seen to date.