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Mnuchin Hints at Fannie-Freddie Changes to End Federal Control
“I would like to get them out of conservatorship,” Mnuchin said during a roundtable interview at Bloomberg’s Washington office. “My preference would be to do something that has bipartisan legislative support.
“There are changes we will be able to make with a new director at the FHFA,” Mnuchin said.
https://www.nreionline.com/lending/mnuchin-hints-fannie-freddie-changes-end-federal-control
FHFA's Melvin Watt appears to be the roadblock in preventing the administration from moving forward with plans to take administrative action with Fannie and Freddie. He's gone in less than three weeks. In three weeks we'll have a new acting director at FHFA who we can expect will be working with this administration to take next steps. After all, there's no reason to install someone as an acting director if you haven't already gone over what you want them to do and they're on board with it.
https://seekingalpha.com/article/4229316-gse-investors-wait-watt-leave-fhfa?page=4
Mnuchin Met With Bloomberg
Mnuchin said, "I would like to get them out of conservatorship." He also added that he wants to make sure that there's access to liquidity and capital for consumers. That really takes any drastic changes to the GSEs off the table, aka attempting to revoke their charters or run them through receivership.
His other call was to make sure that in restructuring them they wouldn't put taxpayers at risk. In other words, he wants to make them adequately capitalized. According to the proposed capital rule by FHFA, 2.5-3.24% capital using that rule would have kept the GSEs adequately capitalized during the housing crisis of 2008-2009. The real concern here is to make sure that they are holding enough capital that there is never a run on agency mortgage backed securities.
Mnuchin did say that securing Senate confirmation of a new Federal Housing Finance Agency director would be key to the administration's efforts:
https://seekingalpha.com/article/4229316-gse-investors-wait-watt-leave-fhfa?page=2
Future Chief Of Staff Mulvaney Positive For Recapitalization
Mulvaney previously proposed H.R.4913 that basically writes down the Senior Preferred Stock and exercises the warrants and forces the GSEs to produce a capital restoration and terminate the conservatorships when the GSEs complete the plan. Mulvaney will become the Chief of Staff before the end of this year. The Chief of Staff is the #1 position in the White House under Trump. Mulvaney previously criticized FHFA's Watt for allowing an agreement between two agencies of government to trump the law. Watt's defense was that happened before he got there.
https://seekingalpha.com/article/4229316-gse-investors-wait-watt-leave-fhfa?page=3
preferred is up 7.5%
nnie Mae (QB) FNMAS Other OTC Common Stock
Price Change Change Percent Stock Price High Price Low Price Open Price Close Price Last Traded
0.51 7.5% 7.36 7.50 6.85 6.98 6.85 13:50:30
Bid Price Ask Price Spread Spread % News
7.35 7.36 0.01 0.1% -
LOL
After january 4th you can not imagine this price anymore. This was the life time opportunity to buy fnma
The price is going to be out of control after january 4th. Then with the ordinary money we will not be able to afford to buy
The price of fnma is going to be out of control after january 4th with a new director
This technical chart really do not apply in terms of fnma. It is based on the information that comes our of government official. Mainly any information hinting the release and recap. Today it was the treasury's information that spiked. This will continue to sore for a few day as i have been closely observing the history of fnma
Is going to be very busy tomorrow
They did not do all these transaction just to do receivership.
I have been through this befoe. By holding tight, i eventually became a big gainer instead of looser
There are only 5.5 million is traded volumn. What about total outstanding share 1 billion. Unless total traded volumn is 80 million, i am not going to give up my share
December 2018 is the last chance of buying fnma cheap. After january 04 we will not see fnma this cheap in out lifetime.
But the fnma is not insolvent. Conservatorship is custodial to make it sound and healthy. If unable to make it sound and healthy then the question of receivership cropped up. Here no room for receivership.
receivership is only a phenomenon when company does not generate any revenue. FNMA has been proven highly profitable in a seris of 51 Quarters. Paid all the bailout money and paid some 54 billion in excess. So receivership by the term is out of table. Only practical phenomenon here is release and recapitalize.
Housing execs warn against Fannie, Freddie investors' take-over plan
A group of housing executives, including former FHFA Acting Director Edward DeMarco, has issued a warning against a plan by Wall Street investors in Fannie Mae and Freddie Mac to take over the GSEs.
“Taking advantage of this congressional impasse, several of Fannie and Freddie’s largest investors have banded together to advocate a path out of this state of limbo. Remarkably, however, the path does not lead to a new system as policymakers had intended, but back to the very system we had before the crisis. Yes, the one that nearly took down the economy,” the executives wrote.
“After all, the investors would get the upside if their riskiest bets pay off, and taxpayers would get the downside if they don’t — again. As the saying goes, fool us once, shame on you. Fool us twice, shame on us,” the executives wrote.
https://www.mpamag.com/news/housing-execs-warn-against-fannie-freddie-investors-takeover-plan-119209.aspx
This will be the last time ever anybody can buy fnma this cheap. I knew december is the moth of selling before any body can claim tax claim for the year 2018. No body will ever see fnam this cheap in any body's life time ever after january 2019.
These people are deliberately trying to depressing the price. This reminds me same scinaro as warner and corker. When the stock was just about to go sky rocketting during the 2013 when fnma announced their first billions dollar profit. Warner and corcker tried to introduce the bill to wind down fnma and fmcc. Now prospect are looming larger of the share price to go sky rocket with the calambria history of affinity towards investors right and againt the netsweep arragngment, people who are not holding any position are spreading rumor so that they can by cheap. A total scam.
You do not see any institution investor here. Vol is too low. just repeatedly selling 100 shares below a penny of the current price. If you can go to the trade, you can find it out.
If you follow the fnma history, you will find most of the year during the month of december, share price drops at least more than 10% except the year 2013 when they first announce the profitability of fnma. The reason for this drops is because it the last month to take the tax benefit of loss. So if you happened to have gain some other stocks, and you need to offset the tax of those gain, you can show some loss. And the second reason is, if you follow the trade, you see some one is selling 100 share in reduced priced against a large share of increased price. if you can do that one hundred time in a day this will scare all the people, and we go for a selling spree. Then price drops and all those player will buy in reduced price. They have benefit of two fold. First they will have to pay less tax on their other gains. and they buy the fnma in cheap becuase they are sitting with loads of cash. This way when January next year, when all those new update will come and they will sale in higher profit.
treasury do not want to distribute the profit share. Therefore receivership is not practical option with lineage of trillion dollars mortagage market. In addition all the hedge are closely working behind the door so their interest are preserved. Specially John Paulson who purchased the debt of Puerto Rico. He was the biggest donor of Trump campaign in 2016.
This is an impractical option with an trillion dollars entity like fnma. Even int the past he proposed for ceceivership, he always insisted the sharehoder's right to be compensated. In any evince, it it goes into receivership, then they need to be address the issue of creditors and shareholder's. Netsweep will be nullified. and sharing of all the past profit issue is going to be cropped up. In this scinario, If the profit distribution proposal comes into the surface, all the past and present share holder will have an legitimate claim. Who ever held fnma share past and present, will come forward and claim piece op the pie. After all Calambria is a stunch opponent of Netswip agreement.
The Conservatorships of Fannie Mae and Freddie Mac: Actions Violate HERA and Established Insolvency Principles
[url]By Michael Krimminger and
Mark A. Calabria
February 9, 2015[/url][tag]insert-text-here[/tag]
https://object.cato.org/sites/cato.org/files/pubs/pdf/working-paper-26_1.pdf
Prospects for housing finance reform ‘brighten’ and may favor shareholders
https://www.marketwatch.com/story/prospects-for-housing-finance-reform-brighten-and-may-favor-shareholders-2017-12-08
Company Name Stock Ticker Symbol Market Type ISIN Company Description
Fannie Mae (QB) FNMAS Other OTC Common Stock
Price Change Change Percent Stock Price High Price Low Price Open Price Close Price Last Traded
0.10 1.5% 6.70 6.92 6.64 6.65 6.60 10:34:28
Bid Price Ask Price Spread Spread % News
6.69 6.75 0.06 0.9% - -
Stock Trades Traded Volume VWAP Dollar Volume Average Volume 52 Week Range
144 240,070 $ 6.76636 $ 1.62M 1.22M 0.0000 - 6.65
Last Trade Time Type Quantity Stock Price Currency
10:34:24 100 $ 6.7 USD
Memo
Preferred up 1.5%. there are less chance here for some one single handedly depress the price
There are no institutional investor involve in here. No big are selling here. Everyone is holding tight.
Some one is trying to create panic to depress the price and loading up in cheap
We hope to see this stock $5 very soon
Trump Picks Pence Economist to Lead Fannie-Freddie Regulator
A group with particular interest in what Calabria might do at FHFA are hedge funds that own Fannie and Freddie stock. Such investors have been fighting the government for years over the Obama administration’s 2012 decision to sweep nearly all of the companies’ earnings into the Treasury, arguing that private shareholders should be compensated.
Calabria co-authored a paper in 2015 criticizing the net-worth sweep. Investors Unite, a group and Fannie and Freddie shareholders, sponsored a press conference to unveil Calabria’s paper,
https://finance.yahoo.com/news/trump-picks-pence-economist-lead-002147047.html
insert-text-here
Analysts weigh Calabria’s potential impact
So, Calabria has the housing experience and has long been outspoken about housing issues. In one example, the same week that he was named to Pence’s staff, Calabria posted a blog, found here, where he addresses the Mortgage Bankers Association’s plans for the future of Fannie Mae and Freddie Mac.
In his role in the administration, Calabria has also spoken about the administration’s desire to end the conservatorship of Fannie and Freddie.
https://www.housingwire.com/articles/47672-what-would-mark-calabria-as-fhfa-director-mean-for-the-future-of-fannie-and-freddie
The end of Fannie, Freddie conservatorship? Trump reportedly picking Mark Calabria to lead FHFA
Main points:
Calabria served at the Cato Institute and has long been an advocate for housing finance reform. As Pence's economist, Calabria famously called for the end of the conservatorship of Fannie Mae and Freddie Mac.
Five years ago, Calabria expressed distaste at the way the government-sponsored enterprises were being run. In 2013, Freddie Mac failed to refer nearly 58,000 foreclosed homeowners who owed $4.6 billion on their guaranteed loans, thereby neglecting its chance to seize properties from those who defaulted on mortgage payments, a watchdog noted.
Calabria could soon be in charge of the regulator that oversees the GSEs. And that could lead to serious winds of change at the GSEs and for the U.S. housing economy.
https://www.housingwire.com/articles/47658-the-end-of-fannie-freddie-conservatorship-trump-reportedly-picking-mark-calabria-to-lead-fhfa#.XA6cJnGvUCx.twitter