is...waitin for the government to get rite for the people
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This article just doesnt set rite for me.
Bloomberg to push for financial transactions tax and Fannie-Freddie mergerMARKETWATCH - 2:04 PM ET
A spokeswoman for Mike Bloomberg told the New York Times (https://www.nytimes.com/2020/02/18/business/dealbook/ bloomberg-regulation-wall-street.html)he will push for a financial transactions tax of 0.1% and a merger of housing finance giants Fannie Mae (FNMA) and Freddie Mac (FMCC) . The plan, which the Democratic presidential candidate is set to unveil, will also call for toughening the Volcker Rule and having the Justice Department create a dedicated team to fight corporate crime. Bloomberg's fortune has come through his eponymous Bloomberg LP service that caters to Wall Street clients.
Didnt see this posted so figure I will.
Fannie Mae, Freddie Mac shareholders could benefit from the Trump administration's proposed budget
BY MarketWatch
— 9:25 AM ET 02/15/2020
The Trump administration has suggested eliminating two affordable housing programs funded by Freddie Mac (FMCC) and Fannie Mae (FNMA)
The White House's proposed budget could be a boon to shareholders of Fannie Mae (FNMA) and Freddie Mac (FMCC) .
The Trump administration has proposed ceasing allocations (https://www.whitehouse.gov/wp-content/uploads/2020/02/msar_ fy21.pdf) to two affordable housing programs: the Housing Trust Fund and the Capital Magnet Fund. Both programs are currently funded through money the federal government collects from Fannie Mae (FNMA) and Freddie Mac (FMCC).
The national Housing Trust Fund primarily provides money (https://nlihc.org/sites/default/files/HTF_Factsheet.pdf) for the production, preservation, rehabilitation and/or operation of affordable rental housing across the U.S. Additionally, 10% of the fund's resources go toward activities that support first-time home buyers, including down-payment assistance and interest-rate buy-downs.
Read more:Trump promised to save Medicare and Social Security -- his proposed budget targets them (http:// www.marketwatch.com/story/trump-promised-to-save-medicare-and-social-security-his-proposed-budget-targets-them-2020-02- 10)
Meanwhile, the Capital Magnet Fund awards money (https://www.cdfifund.gov/Documents/CMF%20Fact%20Sheet%20Dec2017.pdf) to community development and affordable housing organizations, with the goal of supporting activities that are intended to attract private capital to communities that are economically distressed.
Since 2016, when Fannie Mae (FNMA) and Freddie Mac (FMCC) first allocated money to the two funds, the government-sponsored mortgage- finance giants have distributed $1.4 billion to them. If the Trump administration's proposal is approved by Congress though, they either will get to keep an estimated $2.9 billion in money that would otherwise be allocated to those two funds between 2021 and 2030, or that money would go toward paying down the national deficit.
(Freddie Mac (FMCC) did not immediately return a request for comment. Fannie Mae (FNMA) directed MarketWatch's questions to the Federal Housing Finance Agency. FHFA did not respond to an inquiry.)
The proposal is part of an overall attempt to overhaul the federal government's affordable housing programs. "Housing for low-income families is currently funded by multiple funding sources, including Federal, State, and local governments, as well as the private and nonprofit sectors," the Trump administration noted in its proposed budget. "The result is a fragmented system with varying rules and regulations that create overlap and inefficiencies, as well as challenges to measuring collective performance."
The White House further argues that state and local governments "are better positioned to comprehensively address the array of unique market challenges, local policies, and impediments that lead to housing affordability problems."
Affordable housing and consumer protection advocates have criticized this and other changes the Trump administration has proposed to a wide range of social safety net programs, including programs that work to address homelessness and funding for public housing.
"We've seen (and defeated) these proposals from Secretary Carson and President Trump many times before but it bears repeating -- this is a cruel and unconscionable budget proposal, and Congress must soundly reject it," said Diane Yentel, CEO and President of the National Low Income Housing Coalition. "With this proposal, President Trump and Secretary Carson make clear their willingness to increase evictions and homelessness -- through rent hikes for some of the lowest income people in subsidized housing and slashing or eliminating funding for programs that keep the poorest people in our country affordably and safely housed."
Opinion:Trump's election year gamble: Slashing the social safety net (http://www.marketwatch.com/story/trumps- election-year-gamble-cutting-entitlements-for-seniors-2020-02-10)
However, others argue that cutting programs such as the Housing Trust Fund could in the long run benefit consumers, if the cuts were coupled with efforts to ramp up the construction of new, affordable housing.
"These programs are counterproductive," said Edward Pinto, director of the American Enterprise Institute Housing Center, a Washington, D.C.-based think-tank. "We need to deal with the supply issue. Until you deal with the supply issue, these other things are Band-Aids."
Down-payment assistance programs, for instance, make it easier for people to get access to mortgage credit, Pinto said. But that in turn allows them to purpose more expensive homes, which results in home prices moving even higher.
Additionally, allowing Freddie Mac (FMCC) and Fannie Mae (FNMA) to retain this money would help them strengthen their capital reserves. That reduces the likelihood that they would need to be bailed out by taxpayers in a future economic downturn and improves the chances of the two corporations exiting conservatorship.
A separate proposal made by the Trump administration, however, might not prove as beneficial to Fannie and Freddie's shareholders. The White House has proposed increasing the guarantee fee charged by the two enterprises from 0.10 percentage points to 0.20 percentage points in 2021, and to keep this higher fee through 2025.
Guarantee fees are charged by Fannie and Freddie to lenders who sell them mortgage loans to package into mortgage- backed securities. The fee is intended to act as a form of insurance in the event the loans go into default or foreclosure.
Raising the guarantee fees would generate $34 billion in additional deficit savings, the Trump administration has said, also adding that it "would help to level the playing field for private lenders seeking to compete" with Fannie and Freddie.
The Trump administration had previously sought to make this change (https://www.housingwire.com/articles/42512-trump- budget-proposes-to-reduce-deficit-by-raising-g-fees/) during the 2019 budgeting process, but the measure did not pass. In the past, both Democratic and Republican lawmakers have supported legislation (https://www.housingwire.com/articles/ 33269-senators-fight-back-against-using-fannie-freddie-fees-to-cover-federal-spending/) that would bar the federal government from using the proceeds of fees charged by Fannie and Freddie to pay for federal spending.
The Congressional Budget Office has previously warned that raising guarantee fees could affect borrowers. "The higher guarantee fees would probably pass directly through to borrowers in the form of higher mortgage rates," the CBO said of the Trump administration's previous proposal.
The vision the Trump administration outlined in its latest proposed federal budget is unlikely to come to fruition this time around though, because the House and Senate agreed to a two-year budget deal last fall that still has another year to go before legislative action is necessary.
Only so long a super bull can be held down, Go zfnF!!
My equity summary score today. Just seemed so starry eyed
FMCC9.2
SAGE7.8
FNMA6.9
CQP6.6
MGI4.5
IIPR0.3
GBTCN/
AKODKN/
ASPCEN/n/a
N/a not in play rite now
n the G-Fee Race, Freddie Finishes First
jbancroft@imfpubs.com
Freddie Mac appeared to achieve a long-sought milestone in the fourth quarter of 2019: parity with Fannie Mae on single-family guarantee-fee pricing.
According to earnings reports from the two government-sponsored enterprises, the average fourth-quarter g-fee on new single-family business was 48.0 basis points at Freddie, a nudge higher than Fannie’s 46.9 bps average.
Historically, because Fannie MBS volume was larger and more liquid, the company enjoyed a pricing advantage over Freddie securities even though Freddie offered better cash-flows to investors. The disparity was one of the major motives behind the uniform MBS, which makes both brands interchangeable. In 2018, for example, Freddie charged 6.2 bps less than Fannie.
Pricing is a sort of a Fuji-to-McIntosh comparison. Average g-fees are the result of the risk profile of the new business the GSEs acquire. Freddie’s higher average could reflect a slightly higher credit risk in the loans it acquired. For more details, see the new edition of Inside MBS & ABS, now available online.
Pressure is building. What is ours is starting to become a realization. Amazing how many have already become millionaires. Many more to come to the blue collared gentleman.
At least we have a $5 target projection. :(
Please only post true info with link please.
Outta control.
The lube that's holding us back is wearin off. Time to get in if your not
How about the short show. In the teens these days.
Sumtn up.? I've never seen an unconfirmed earnings date sit and then yesterday we get an official announcement of Feb 13th earnings release, only 2 days after announcing it. .... hmmm
My green screen monitor is glitching stuck. I cant get the price to move. Bad phosphor or is the money bad
Nothn wrong with that. It's not like it's a dollar drip. Measly nickels n dimes
Looks like the gains are headed back down to me
Any trading is nothn but nickles and dimes. Major leaguers are holding
Tough decisions to make on this stock considering the zero pps movement and yet we hold at a level not seen in 8+ months, other than the brief Oct 19 run. We've been stuck for 2+ now
Losing more steam. Up a whopping 2% on Jack news, Dont anyone get pumped up anymore about these two companies. Real news would double the pps instantly or more. Joe Highschool invested today and sold when he made 100 bucks.
Banks are still as screwed up as ever. Going on a 3rd try signing my Freddie Mac loan that has been misrepresented in terms incorrectly. So much BS paperwork to sign that takes away all privacy and leaves me at a loss in direction of life. VERY FRUSTRATING! No wonder why these companies are going nowhere. The banks are the rulers of this country in case ya dont know
If such news is so great tell me why we are bleeding a 3% gain and why hiring an advisor is so good. IT MEANS NOTHING. It simply is a stay to what is a smoke screen to the courts
Fannie, Freddie Regulator Hires Adviser on Mortgage Giants' Privatization -- Update
BY Dow Jones & Company, Inc.
— 5:46 PM ET 02/03/2020
WASHINGTON -- A federal regulator has hired an adviser to help recapitalize Fannie Mae (FNMA) and Freddie Mac (FMCC), the mortgage-finance giants at the heart of the 2008 financial crisis.
The Federal Housing Finance Agency said Monday it tapped investment bank Houlihan Lokey Inc. (HLI) as it moves toward returning the mortgage companies to private ownership after their $190 billion government bailout.
The contract for the Los Angeles-based firm, which does a lot of restructuring and merger work in the mortgage industry, is valued at up to $45 million over about five years, according to the FHFA. The firm declined to comment.
The announcement underscores the commitment of the independent FHFA and the Trump administration to put Fannie and Freddie on a sound financial footing and release them from government control.
How policy makers and the companies balance the competing demands of protecting taxpayers, delivering a return to shareholders and ensuring access to home loans will help determine who gets mortgages in the U.S., and on what terms.
The companies back about half of the $11 trillion mortgage market and are central to the widespread availability of the popular 30-year, fixed-rate mortgage.
Monday's move allows Fannie and Freddie to hire their own advisers. Some of the largest U.S. banks, including Bank of America Corp. and Morgan Stanley, were laying the groundwork to compete for a lucrative contract to underwrite a public offering of shares, The Wall Street Journal reported in October.
Fannie and Freddie ran into trouble before the crisis by taking on more risk without having to hold more capital. They amassed huge investment portfolios to profit from the difference between their low cost of capital -- a benefit of an implied federal guarantee -- and the rates they could earn on mortgages.
The government seized the companies through a process known as conservatorship in 2008, during the George W. Bush administration, and injected vast sums to support some $5 trillion in debt securities issued by the companies.
"Hiring a financial adviser is a significant milestone toward ending the conservatorships of the enterprises," FHFA Director Mark Calabria said in a statement.
Trump administration officials say they are compelled to act now because the companies' conservatorships were meant to be temporary. They also say the government should cease playing a central role in housing, a massive sector that touches some 15% of the economy.
Fannie and Freddie don't make loans but purchase them from lenders. They package them into securities that are sold to investors, and provide guarantees to make the investors whole if the loan defaults.
Shoring up Fannie's and Freddie's financings could entail raising more than $125 billion, in part by selling new shares in public offerings, according to former company officials and housing experts. In comparison, the largest initial public stock offering ever was $25.6 billion raised by Saudi Arabian Oil Co. in December.
The FHFA must decide how much capital each company will need to absorb potential losses, through a combination of retained earnings and new stock offerings. That process is expected to begin as early as this month.
The agency scrapped a proposal, floated by an Obama-era regulator, to require the companies to raise $180 billion between them. As of September 2019, Fannie had about $10 billion in capital and Freddie had about $7 billion, according to FHFA, far less than what they need to exit government control.
Since 2012, the government has required the companies to turn over all of their profits to the Treasury Department, in part to speed up repayments to taxpayers. Last fall, the Trump administration and FHFA paused the so-called profit sweep to allow the companies to build up their capital.
In preparation for the capital raise, both companies also started to pull back on some riskier loans, such as loans they back to borrowers with small down payments and mortgages to deeply indebted borrowers. And in a bid to cut costs, Freddie last year offered early retirement packages to about one-quarter of its 6,600 employees, according to people familiar with the move.
Wonder who's paying for this shit....
Houlihan Lokey to help map out Fannie, Freddie release
Feb. 03, 2020 5:06 PM ETHoulihan Lokey, Inc. (HLI)By: Liz Kiesche, SA News Editor15 Comments
The Federal Housing Finance Agency picks Houlihan Lokey (NYSE:HLI) as a financial adviser to assist the government agency in developing and implementing a roadmap to end the conservatorships of Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC).HLI, which also fiscal Q3 earnings that beat estimates, climbs 3.0% in after-hours trading of 6,579 shares.The contract amount for the first year is $9M. FHFA can extend the contract for an additional 4.5 years with a total contract not to exceed $45M."While developing the roadmap, Houlihan Lokey will consider business and capital structures, market impacts and timing, and available capital raising alternatives, among other items as outlined in the previously published Statement of Work," the FHFA said in as statement.
Nope sure didn't. Nor at 2.99
We went from Extreme bull over nothing to boring Neutral today over nothing. I was gonna buy but not now. Just wait wait wait
for it to entice me now
Having to put off my 25% increase buy till after earnings is driving me insane.
Took advantage of my one time renegotiate rate lock on my new FREDDIE MAC refi, best rates in 3 months since oct.
What's 6months vs the last 10+. I can wait
Looks like a preffered settlement to me. I'd be leery of it because they always offer settlements to suckers who cant wait when defendant knows realistically they will pay more in the end.
Odd the deadline is Jan 16th
Can we wait till Feb 2nd. Put a call into Arnold and have some monkeywrenches thrown
Bulls like red.
Same here but not as much. Holding strong and planning to buy to replenish at the end of the month
Completely agree and said it 2 days ago. Dip dip dip, dip dip dee dip
My Freddie mac loan closes on the 22nd. We are here to stay. If they F me, I can now F them! Go FnF!
I was felling the same. Trend feels to the downside but its holding up well
Deja vu Had to sell twice now same as last year. Needed cash to save my dog. Hope for end of month dip to rebuy lost shares
Home prices may not be moving up as fast but a solid hold in pricing is driving buyers in my area to spend ridiculous amounts of money for multifamily properties.
Probly just a kid. No commish now makes screwin up easy
I call it even Steven today. No reason to go up or down today.