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According to Craig, Mel Watt would have been amicable to ending the sweep, SM defended the validity of the Government's "investment" in the gses and the validity of the sweep to the very end and in Collins at the SCOTUS. I think near the beginning of the DJT Administration their team must have decided that the status quo was okay (since the sweep was inheireted from the previous adminstration) and to reward the "evil hedge fund guys/evil banksters" by ending the sweep was bad political optics and/or might give his critics more ammunition that he is just helping out the rich guys.
SM was a loyal soldier of the POTUS to the end, so he was just doing what he was told, but SM should have recognized that the nws was a bad governmental policy and ending it was important and for whatever reason he never did.
I think the strong appeal of the net worth swipe for the Executive branch is, regardless of party, a politician can seldom resist EXTRA UNAPPROPRIATED FUNDS THAT BYPASS CONGRESSIONAL APPROVAL! EVEN THOUGH THE FUNDS DERIVE FROM EXPRORIATION OF PRIVATE PROPERTY BY THE GOVERNMENT. This is the most bizarre situation in American Capitalism I can recall, EVER!
SCOTUS, SCOTUS, SCOTUS!!!
Nice analysis, the mystery of WHY SM told Maria B. (Fox Biz news) at the very beginning of the DJT Administration, "Maria we need to get the gses out of Governmental control", has been solved. Craig and SM truly believed it, BUT it seems that when preparing the Annual Federal Budget thereafter, the POTUS staff decided that the nws should go to fund "red meat projects" that the POTUS promised his base! Makes total sense to me, what politician could NOT find a way to spend the "free money" generated by the gses for their pet projects?
Although SM deprived the current administration of this quarterly funding from the Nationalization of the gses, let's see if the SCOTUS will finally put an end to this abusive and coercive Governmental overreach into the back pockets of the shareholders.
Great interview, thanks Brooge!
• Fannie Mae's Guaranty Book of Business increased at a compound annualized rate of 6.5% in April.
• The Conventional Single-Family Serious Delinquency Rate decreased 20 basis points to 2.38% in April.
• The Multifamily Serious Delinquency Rate decreased 11 basis points to 0.55% in April.
• As of April 30, 2021, 2.4% and 2.2% of our Single-Family Conventional Book of Business based on unpaid
principal balance and loan count, respectively, was in active forbearance, the vast majority of which were
related to COVID-19; 10% of these loans in forbearance (based on loan count) were current.
• As of April 30, 2021, 0.3% of our Multifamily Guaranty Book of Business based on unpaid principal balance
was in an active forbearance, the vast majority of which were related to COVID-19.
• In April 2021, Fannie Mae issued resecuritizations that were backed by $12.1 billion in Freddie Mac securities.
• As of April 30, 2021, Fannie Mae's maximum exposure to Freddie Mac collateral that was included in
outstanding Fannie Mae resecuritizations was $159.4 billion
Latest from Senator Sherrod Brown, Chair of SBC (hint: he's not a big fan of the "invisible hand" of free markets OR MILTON FRIEDMAN):
"In a pandemic where half a million Americans died and we had the highest unemployment since the Great Depression, Wall Street still made record profits.
I sense a pattern.
Like most Americans, I want businesses to make money, and I don’t mind that bankers are rich. Some people are going to be wealthy, and that’s fine.
Here’s the problem: under the current system, Wall Street profits no matter what happens to workers, because those profits now come at the expense of workers.
And your banks are the ones that largely built that system.
We often hear about the “invisible hand.” But the economy isn’t physics – it’s not governed by scientific laws outside our control. It’s made up of people making choices about our values and the society we want to live in.
The “invisible hand” doesn’t lay off workers. The “invisible hand” didn’t invent credit default swaps. The “invisible hand” doesn’t decide to invest in private equity firms that buy up mobile home parks in Iowa and across the country, and jack up the rent.
Your banks – your lobbyists, and your fellow CEOs at some of the other largest companies – you all make those choices that dictate how our economy works.
Wall Street built this system, and they didn’t build it for everyone – they built it for themselves.
When companies lay people off, when they move jobs to low-wage countries, when they cut paychecks, when they bust unions, when they subcontract work to lower-paying companies with fewer benefits, Wall Street analysts yell “buy…buy…buy.”
And what you do sends a signal to every other company. If businesses want investment, they emulate you. They know they won’t attract investment unless they re-purpose all their funds into short-term profits for shareholders.
It hasn’t always been like this.
When I was growing up, the CEO-to-median worker pay ratio was 20-to-1. That was good money.
Today, that ratio is 320-to-1.
From the mid-20th century through the early 80s, the financial sector made up 10 to 15 percent of corporate profits. Today it’s 25 percent – yet it makes up only four percent of jobs.
A few decades ago, a majority of Wall Street capital funded the real economy – wages, machinery, research, new construction. Today, much of that capital goes to stock buybacks, dividends, and complex financial instruments – only about 15 percent goes to the real economy.[1]
Instead of investing in businesses that actually make things or provide useful services, and that create real jobs in towns all over the country, companies spend billions buying back stocks and handing out CEO bonuses.
Stock buy-backs used to be illegal market manipulation. Today, they’re routine.
Wall Street’s interests and Main Street’s interests no longer match up. The current system treats workers as a cost to be minimized – instead of the engine behind our success.
Look at what’s happened to places like where I grew up, in Mansfield, Ohio.
Jobs shipped overseas to countries where companies can pay workers less. Declining union membership – by design. Crumbling roads, shuttered storefronts, and workers forced to choose between a hometown they love, and leaving in search of opportunity.
And that was all before 2008. You all know what happened to Americans then.
And Congress and too many in Washington have been willing accomplices – tax break after tax break. Gutting consumer protections. Trade deals written by corporate lobbyists.
So I come back to this. There’s a reason towns across the country like Mansfield look the way they do. It’s because our economy is no longer about workers and communities, and real investment in both of those.
And the six of you before us today are the most powerful economic titans in the country.
Your banks, and the system they built and uphold, bear some responsibility.
At the end of last month, we held our first-ever worker listening session. We heard from workers from all kinds of backgrounds, working all kinds of jobs – including as a former teller at one of your banks.
They talked about wage theft, about being laid off during a pandemic with no severance, about how dangerous their workplaces could be, about how companies busted their unions.
There was a common thread through all of their stories. Their hard work doesn’t pay off – certainly not the ways yours does.
Pamela Garrison, a worker from West Virginia, said something that stuck with me – “‘working poor’ are two words that shouldn’t go together.”
I know you can’t snap your fingers and fix all these workers’ problems. But you also can’t tell me the decisions you make have no effect on the factors that determine their job opportunities and their wages.
And yes, I know you work hard too. We all do – work is something that unites all of us. We’re ALL trying to do something productive for our families, our businesses, our communities, our country.
Here’s the difference: for most people, no matter how hard they work, if one thing goes wrong in their life – they get in a car accident, the plant where they work shuts down, their spouse gets sick – they’re on their own.
They don’t get a taxpayer bailout. And they all remember that Wall Street did.
And it hasn’t only been the bailouts. No one can deny that the nation has been good to the financial industry — deposit insurance, the federal payments system, the whole financial infrastructure you rely on.
But your banks have not held up your end of the deal.
As far as I can tell, you haven’t at all rethought this Wall Street system built on short-term profits, at the expense of long-term growth for everyone.
In fact, you continue to perpetuate it.
Wall Street gets second chance, after second chance, after second chance. Most workers don’t even get one.
It’s past time for the financial industry to be as good to the American people as the nation has been to you.
The purpose of today’s hearing is to show Americans that their government is finally looking out for them. That we understand this economic system has betrayed millions of workers, that it holds our country back.
Here’s what we want to hear from you today: what are you and the companies you run going to do – not just say, but actually do – to change.
We want to hear what concrete actions you will take to change the incentives on Wall Street, to reward work instead of wealth.
To pay for and work to undo the damage Wall Street has done, and continues to do, to communities of color.
To stop investing in corporations that fuel climate change, threatening people’s communities and livelihoods.
To channel your vast resources into businesses that employ actual people in cities and towns, from Mansfield, Ohio to Mansfield, Georgia.
To invest in our country’s greatest asset – the American people.
I have heard many of you argue that you don’t need government rules forcing you to make any changes to your business model.
So show us some proof – prove to us that you are going to use your positions to change the Wall Street system, make our economy work for everyone—not just CEOs and the wealthy."
5/27/2021
FHFA Releases Latest Report on Non-performing Loan Sales
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released the latest report on the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises). The Enterprise Non-Performing Loan Sales Report includes sales information about NPLs sold through December 31, 2020. Borrower outcomes reflect NPLs sold through June 30th, 2020 and reported through December 31, 2020.
The sale of NPLs reduces the number of delinquent loans in the Enterprises' portfolios and transfers credit risk to the private sector. FHFA and the Enterprises impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure.
This report shows that from program inception in 2014 through December 31, 2020, the Enterprises sold 130,808 NPLs with a total unpaid principal balance (UPB) of $24.5 billion. The loans included in the NPL sales had an average delinquency of 2.9 years and an average current mark-to-market loan-to-value ratio of 91 percent (not including capitalized arrearages).
NPL Sales Highlights:
NPLs sold had an average delinquency of 2.9 years and an average loan-to-value ratio of 91 percent.
The average delinquency for pools sold ranged from 1.4 years to 6.2 years.
NPLs in New Jersey, New York and Florida represented nearly half (43 percent) of the NPLs sold.
Fannie Mae has sold 86,216 loans with an aggregate UPB of $15.8 billion, an average delinquency of 3.0 years, and an average LTV of 89 percent.
Freddie Mac has sold 44,592 loans with an aggregate UPB of $8.7 billion, an average delinquency of 2.8 years, and an average LTV of 95 percent.
Borrower Outcomes Highlights:
The borrower outcomes in the report are based on 125,750 NPLs that were settled by June 30, 2020 and reported as of December 31, 2020.
Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark.
NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (40.2 percent foreclosure avoided versus 16.8 percent for vacant properties).
NPLs on vacant homes had a much higher rate of foreclosure, more than double the foreclosure rate of borrower-occupied properties (76.5 percent foreclosure versus 33 percent for borrower occupied properties). Foreclosures on vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.
The average UPB of NPLs sold was $187,587.
FHFA will continue to provide reporting on NPL sales borrower outcomes on an ongoing basis.
Read the latest Non-Performing Loan Sales Report.
For more information, visit the NPL page on FHFA.gov.
###
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.9 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.
Contacts:
Media: Raffi Williams Raffi.Williams@FHFA.gov / Adam Russell Adam.Russell@FHFA.gov
The federal government has just steamrolled right over our personal property rights and but for the lawsuits would continue unabated! I think the SCOTUS knows this! Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.
On May 26, 2021, Michael J. DeVito was appointed Freddie Mac’s Chief Executive Officer, effective June 1, 2021. Mr. DeVito also will become a
member of Freddie Mac’s Board of Directors (the Board) on June 1, 2021.
Mr. DeVito, 56, is a leader in the mortgage and financial services industry with more than 30 years of experience. Mr. DeVito previously served as
the Executive Vice President, Head of Home Lending, at Wells Fargo and Company (Wells Fargo) from 2017 until his retirement in September 2020.
In this role, he was responsible for all aspects of Wells Fargo’s mortgage and home equity business. Mr. DeVito joined Wells Fargo in 1996 and held
several positions at the company, including Head of Home Lending Production from 2015 to 2017, Head of Home Lending Servicing from 2013 to
2015, Head of Default Servicing from 2011 to 2013, Head of Loan Workout from 2009 to 2011, Head of Education Financial Services from 2007 to
2009, and Head of Mortgage Retail Underwriting and Operations from 2004 to 2007.
Freddie Mac has entered into a Memorandum Agreement with Mr. DeVito, which provides for his employment as Chief Executive Officer of Freddie
Mac. Mr. DeVito’s direct compensation as Chief Executive Officer will consist solely of base salary at the rate of $600,000 per year, pro-rated for the
period of service in 2021. Mr. DeVito will also be eligible to receive employee benefits, as described in Freddie Mac’s Annual Report on Form 10-K
filed with the Securities and Exchange Commission on February 11, 2021 (the 2020 Annual Report). In connection with Mr. DeVito’s appointment as
Freddie Mac’s Chief Executive Officer, he has been offered relocation benefits to reimburse him for his costs associated with relocating to the
Washington, DC area. These relocation benefits will be subject to repayment if within two years of receiving benefits Mr. DeVito terminates his
employment with Freddie Mac for any reason or Freddie Mac terminates his employment due to the occurrence of forfeiture events relating to
material inaccurate information, termination for felony conviction or willful misconduct, gross neglect or gross misconduct, or violation of a post-
termination non-competition covenant.
Freddie Mac also has entered into a restrictive covenant and confidentiality agreement with Mr. DeVito, the form of which is filed as Exhibit 10.20 to
the 2020 Annual Report. In addition, Freddie Mac will enter into an indemnification agreement with Mr. DeVito, the form of which is filed as Exhibit
10.54 to Freddie Mac’s Annual Report on Form 10-K filed on March 9, 2012. For a description of these agreements, see the 2020 Annual Report, under the headings “Executive Compensation – Compensation Discussion and Analysis – Written Agreements Relating to NEO Employment –
Restrictive Covenant and Confidentiality Agreements” and “Executive Compensation – Compensation Discussion and Analysis – Written
Agreements Relating to NEO Employment – Indemnification Agreements,” which descriptions are incorporated herein by reference.
Also, on May 26, 2021, Mark B. Grier was re-elected to Freddie Mac’s Board, effective June 1, 2021, the effective date of Mr. DeVito’s appointment
as Chief Executive Officer. Mr. Grier has been a member of the Board since February 2020 and has served as Interim Chief Executive Officer since
March 2021 while the Board of Directors conducted a search for a permanent Chief Executive Officer. Mr. Grier will cease serving as Interim Chief
Executive Officer on June 1, 2021 and will serve on the Nominating and Governance Committee and Risk Committee as he did prior to his
appointment as Interim Chief Executive Officer.
“Mortgage rates are down below three percent, continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” said Sam Khater, Freddie Mac’s Chief Economist. “In fact, homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 dollars annually. Substantial opportunity continues to exist today, as nearly $2 trillion in conforming mortgages have the ability to refinance and reduce their interest rate by at least half a percentage point.”
News Facts
30-year fixed-rate mortgage averaged 2.95 percent with an average 0.7 point for the week ending May 27, 2021, down from last week when it averaged 3.00 percent. A year ago at this time, the 30-year FRM averaged 3.15 percent.
15-year fixed-rate mortgage averaged 2.27 percent with an average 0.6 point, down from last week when it averaged 2.29 percent. A year ago at this time, the 15-year FRM averaged 2.62 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.59 percent with an average 0.2 point, unchanged from last week. A year ago at this time, the 5-year ARM averaged 3.13 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com
They are holding a conference today, they could THEORETICALLY release it tomorrow as there is a 3 day weekend ahead and it would give people time to digest their ruling. BUT, there are a lot of moving parts in this case, including the analysis by the SCOTUS of how their decision in Collins will impact Judge Lamberth's hearings and the CFC, and other Litigation making its way up the Federal Courts.
Soooo, I still have no idea nor does anyone else and I suspect it will be towards the end of the term and THAT'S GOOD FOR ME BECAUSE I THINK THEY ARE CURRENTLY UNDERVALUED AND MAY NOT BE POST COLLINS!
Well it has taken years of Discovery and Litigation (which ain't easy when Uncle Suggy with his unlimited resources resists at everything). The 5th Circuit EnBanc Panel of 16 Judges (that's AT LEAST 16 LAW CLERKS TO HELP AND LIKELY MORE) gave a pretty well reasoned 190+ page legal analysis (as well as some of the other Federal Courts) on why the "may benefit FHFA" in HERA does not give the FHFA Director the green light to implement the nws.
The arguments by UST and FHFA that ONLY the FHFA can sue itself also seemed to be effectively shot down by a well legal reasoned opinion from the 5th Circuit EnBanc Panel ruling and I believe some other courts as well. Same too as well for the derivative and direct claim issues and the bogus business judgment rule advanced by UST.
I like the Plaintiffs Collins legal posture and we will just have to wait to see how exactly they rule, if we win on all 4 of the points above, the Government will be running out of options!
We'll see what happens!
As the current CZAR over the gses, NOONE can even go to the bathroom WITHOUT HIS SAY SO! Why do you think all these people are leaving?
I mean think about it, Uncle Suggy has the best of both worlds (pre Collins) it has TOTAL CONTROL OVER THE GSES, KEEPS ALL ITS PROFITS (now via the LP), HAS THE SHAREHOLDERS PAY FOR THE ENTIRE F'ING BUDGET OF FHFA, AND KEEPS $7T OFF THE FEDERAL GOVERNMENT BALANCE SHEET!
Let's see if the SCOTUS does anything about it, I think they are not going to adhere to the federal Executive Branch's twisted arguments, that no court can issue an injunction, that only FHFA can sue itself, that the nws was a business decision and can't be questioned, and that FHFA can do the nws because it "may" benefit them and that is allowed under HERA.
If the SCOTUS finds against the Executive branch of government on those four questions, remands back to the 5th, then Uncle Suggy is in for some rough waters ahead!
Let's see what happens!
From todays NYT: To Prevent Evictions, End Moratoriums: [Editorial]
Halting most evictions during the coronavirus pandemic was a necessary act of emergency medicine. Federal, state and local moratoriums allowed millions of Americans to stay in their homes when they couldn't afford to pay rent. But that success is now at risk of unraveling.
The eviction moratoriums were always intended as stopgaps. The government's long-term plan was to distribute billions of dollars in aid so tenants could make up missed payments.
Congress has provided $46.5 billion. But as pressure grows to end the moratoriums, state and local governments are struggling to get the money into the hands of the people who need it. California has awarded less than 10 percent of its share of federal aid. The District of Columbia has collected more than 10,000 applications and given money to 500 people. New York has yet to start its program, although officials insist they will take applications by the end of May. Unused federal funds begin to expire in September.
The problems extend beyond bureaucratic fumbling. Even in places where aid is available, some landlords have refused to accept the federal payments, while many tenants who need help have not submitted applications.
Philadelphia has found an elegant way to address these problems. The city is letting landlords pursue evictions again -- but first, they must apply for federal aid on behalf of the tenant.
It's an exit strategy others should emulate as the coronavirus is beaten back in the United States. Philadelphia's approach and similar measures in other areas, including Virginia, inject a necessary dose of urgency while maintaining a focus on what ought to be the clear goal: keeping people in their homes.
Philadelphia isn't just hitting the restart button on evictions. Eviction is too easy in most cities. The law favors landlords, and tenants often lose even when the law might be on their side. Among other imbalances, landlords usually have lawyers, while tenants usually do not.
To level the playing field, Philadelphia has created a diversion program that provides counselors to negotiate agreements between tenants and landlords, as well as lawyers to help some tenants who do end up in court. Last month, the city began to require landlords to participate in the diversion program.
In most cases, the city also isn't letting landlords put people on the street just yet. Filing for eviction is merely the start of a long process, and because of public health concerns, Philadelphia is not allowing landlords to force out tenants until at least June 30.
One flaw in the Philadelphia and Virginia models, and in the rules in some other jurisdictions with similar requirements, is that landlords are required to apply for tenant aid only if they are pursuing an eviction for failure to pay rent. It is relatively easy to skirt that requirement by citing a different cause, like maintenance issues or noise complaints. It would also be easy to fix this problem by uniformly requiring aid applications.
Limits on eviction vary across the country. The federal government has prohibited evictions from properties with government-backed mortgages through June 30. The Centers for Disease Control and Prevention also has banned evictions through June 30 involving households that cannot pay rent because of economic hardship caused by the pandemic. Many state and local governments have imposed broader bans, some of which are scheduled to remain in place at least through summer. In New York State, the current expiration date is Aug. 31.
During the pandemic, allowing people to stay in their homes has saved lives, according to a study published in Nature Communications. As the pandemic wanes, however, so does the justification for asking landlords to bear the cost of unpaid rent.
About 47 percent of rental units are owned by individual investors. They have bills to pay, too.
The federal aid is meant to pass through tenants to their landlords. But tenants may be unaware of the aid program, or may struggle to complete the application. So long as moratoriums remain in place, landlords may need the money more urgently than their tenants do. At a hearing in the District of Columbia on Friday, landlords testified that some tenants won't apply for aid because there are no immediate consequences for failing to pay the rent.
"The fact remains that people in general won't do something until they absolutely have to, even if it is in their best interest," said Richard Bianco of the Small Multifamily Owners Association.
Mr. Bianco's observation, however, also applies to landlords. Some states are preparing for a summer wave of evictions by providing tenants with legal assistance. Washington State, whose eviction moratorium is set to expire on June 30, recently became the first state to guarantee a lawyer to low-income tenants facing eviction. But such programs do not go far enough because they don't require landlords to help.
Across the country, many tenants are trying as hard as they can to pay what they owe and stay where they are. Many landlords have behaved with admirable forbearance. For the minority of cases where good will is not enough, Philadelphia has the right idea.
The Times is committed to publishing a diversity of letters to the editor. We'd like to hear what you think about this or any of our articles. Here are some tips . And here's our email: letters@nytimes.com .
Follow The New York Times Opinion section on Facebook , Twitter (@NYTopinion) and Instagram .
Credit: By The Editorial Board
Showdown at the DC Commission of Fine Arts, an independent federal agency? From todays WP: "On Monday, the Biden administration sent letters to architect Steven Spandle, landscape architect Perry Guillot, sculptor Chas Fagan and commission chairman Justin Shubow asking that they resign by 6 p.m. that day or face termination.
None of the four resigned."
A potential showdown between arts people and the POTUS? The DC drama continues, stay tuned!!!!!!
Could the Collins decision impact this? Stay thirsty my friends and donate generously to your local Arts programs!
https://www.housingwire.com/articles/freddie-mac-taps-michael-devito-as-next-ceo/
https://www.housingwire.com/articles/fannie-mae-taps-evans-as-next-single-family-chief/
MBA and the financial industry don't want to let this golden goose get away: https://www.housingwire.com/articles/crt-protects-gses-taxpayers-from-unexpected-disasters/
Wow, new CEO at Freddie, New SVP at Fannie, it's like MC is trying to take care of as much as he can before some big catalyst takes place, but what could that be?
From todays WP: "Asked about the change, White House press secretary Jen Psaki said a number of the ousted members were last-minute appointments by Trump. "Certainly any president coming in has the right to nominate their own people to serve on a commission or serve in any positions in their own administration," she said Tuesday."
Hmmmm, and to think the SCOTUS is issuing at least one decision tomorrow, the day before a 3 day weekend....
What do you know, a little juicy dirt from the creator of the CRT PROGRAM/GIVEAWAY TO THE FINANCIAL INDUSTRY, from "Luv to do me some skirt chasing when I am the CZAR of the gses"/"I don't stay up at night worrying about the shareholders", MELVIN LUTHER WATT, TO A GSE STOCKHOLDER NONETHELESS: "Accusation by Ralph Nader of use of "racial epithet":
In 2004, Ralph Nader attended a meeting with the Congressional Black Caucus, at which Nader clashed with members of the caucus over his presidential bid. After the meeting, Nader alleged that Watt twice uttered an "obscene racial epithet" towards him. It was alleged that Watt said: "You're just another arrogant white man — telling us what we can do — it's all about your ego — another fucking arrogant white man." Although Nader (who is of Lebanese descent) wrote a letter to the Caucus and to Watt asking for an apology, none was offered
Ouch! Melvin please, children may be present!
Wonder if old Melvin has been rewarded by the financial industry for his $14.95B (AND COUNTING!) giveaway, the gses SURE COULD HAVE USED THAT CAPITAL TO REBUILD THEIR BALANCE SHEETS, BUT THAT WOULD HAVE INTERFERED WITH THE WHOLE DEFACTO NATIONALIZATION THING!
Did he receive lucrative a board membership, consulting fee arrangement, yuge speaking fees, etc. Inquiring minds want to know!
From the ever poignant ROLG on the continuing CRT scam: "in a CRT transaction, just like most issuances, the party with the superior info/acumen is the issuer, the GSEs. at the pricing that is available to the GSEs in a CRT transaction, 10 times out of 10 the GSEs should walk away.
but they dont, since they were constrained by their regulator, and the manner in which the conservatorship has been conducted (ie in the worst interests of the GSEs), to do the deals or else. issuers often dont walk away for agency problem issues (management has a greater interest in cashing in options than doing a fair transaction), but you would have to look far and wide to see a situation like the GSEs…where there is a regulator’s gun to the GSE head to hit the fricking bid. so “dumb money” gets rewarded in CRTs, and the facts set forth in Tim’s post bear this out. So enough of the “protect the taxpayer” homilies…this is just Wall Street getting the better of Main Street (represented by the GSEs mission to promote the housing finance market) once again."
Might be a good time for MC to polish up the old resume?:
"The commission is an independent federal agency established by Congress that advises Congress and the White House on public (civic) architecture on federal lands and in the District of Columbia. Established in 1910, its seven members are chosen from “disciplines including art, architecture, landscape architecture, and urban design,” and are appointed by the president to serve four-year terms. No commission member has ever been asked to tender their resignation before their term was up."
https://thefederalist.com/2021/05/24/biden-purges-non-partisan-us-commission-on-fine-arts-in-unprecedented-move-against-popular-classical-architecture/
President Joe Biden launched an unprecedented purge of the U.S. Commission on Fine Arts Monday, according to a letter reviewed by The Federalist demanding resignation letters by 6 p.m. from four of the seven members, including the chairman.
Those members include sculptor Chas Fagan, architect Steven Spandle, landscape architect Perry Guillot, and Chairman Justin Shubow, a writer and expert on architecture and civic beauty.
Fagan is a renowned sculptor and painter whose statue of former President Ronald Reagan stands in the Capitol Rotunda, and whose statue of Civil Rights icon Rosa Parks stands in the National Cathedral. His paintings include the Vatican’s official portrait of St. Mother Theresa and first lady Barbara Bush’s official portrait.
Spandle’s work includes the White House’s beautiful new Tennis Pavilion, and Guillot’s works include the new White House Rose Garden and Children’s Garden.
Shubow also serves as the president of the National Civic Art Society, a non-profit that fights for classicism in public works, and is at the forefront of the battle to rebuild Manhattan’s destroyed Penn Station.
The commission is an independent federal agency established by Congress that advises Congress and the White House on public (civic) architecture on federal lands and in the District of Columbia. Established in 1910, its seven members are chosen from “disciplines including art, architecture, landscape architecture, and urban design,” and are appointed by the president to serve four-year terms. No commission member has ever been asked to tender their resignation before their term was up.
The Trump administration stressed classical architecture, though traditionally the issue has been non-partisan and has included such champions as former President Franklin Delano Roosevelt and former Democratic Sen. Daniel Patrick Moynihan.
While classical architecture remains the hands-down favorite of the American public, its opponents are powerful in academia, elite architecture circles, and, it seems, in the Biden White House. Biden revoked former President Donald Trump’s “Make America Beautiful Again” executive order early in his administration, with supporters claiming classical architecture is somehow connected to fascism.
Shubow was joined by fellow commissioner James McCrery, an architect and the head of the Catholic University of America’s architecture department, joined The Federalist Radio Hour for a podcast discussing the Trump administration’s order in December.
Christopher Bedford is a senior editor at The Federalist, the vice chairman of Young Americans for Freedom, a board member at the National Journalism Center, and the author of The Art of the Donald. Follow him on Twitter.
https://thefederalist.com/2021/05/24/biden-purges-non-partisan-us-commission-on-fine-arts-in-unprecedented-move-against-popular-classical-architecture/
I always loved it when TH mentioned that the MBA, NAHB, and NAR, ONLY HAVE THEMSELVES TO BLAME FOR THE CURRENT STATUS QUO! I mean these guys greed knows no boundary, they kicked the twins when they where down, tried to unsuccessful drive a stake through their heart, and only now realize the folly of their greedy ways...GO FNMA AND FMCC!
The Net Worth Swipe is an abomination to hundreds of years of Conservatorship Law, let's see what the Supreme Court has to say about it. In the event that the USSCT allows the government to continue their defacto nationalization of these two private companies, during the next inevitable crisis, private companies will choose to layoff employees and cut costs instead of accepting any kind of governmental bailout funds and a recession could easily turn into a depression.
I think the 9 Justices understand this, let's see what happens and remember Democracy is the worst form of government except for all the others (especially Socialism).
TH's response yesterday from the financial intermediaries that don't want to give up the $14.95B and counting CRT program: "Mike–As you know, Fannie and Freddie’s relative lack of capital is the result of FHFA and Treasury having required them to remit all of their earnings to Treasury starting in 2013. The taxpayer has fared quite well from that arrangement, and will continue to do so even should the Supreme Court take the first step in reversing the net worth sweep with a ruling favorable for plaintiffs on the APA issue in the Collins case.
Beyond that, I simply disagree with your statement that “if Fannie and Freddie take risk, it could quickly become taxpayer exposure.” As I noted in my post, the companies’ losses on their 2004-2008 books were outliers, caused by the last attempt by their opponents to replace them with “private sector alternatives”–in that instance, private-label securitization. Excluding those years, Fannie’s credit losses have never exceeded 11 basis points as a percent of their owned and guaranteed mortgages, even in recession years. Fannie could cover that loss rate almost four times over with its current average guaranty fee (net of TCCA fees) of 44.5 basis points. So, no, it doesn’t make sense, even with the low level of capital the companies now have, to “distribute rather than concentrate that risk on their balance sheets,” particularly if doing so is almost guaranteed to cost them money. What sensible business pays to give profitable business to someone else?
I don’t have any great ideas for how to fix securitized CRTs to make them economic for the companies to issue, although perhaps the investment bankers can come up with something. On the issue of capital credit for CRTs, I have suggested many times to many people that they need to come up with an analytically sound measure of “equity equivalency,” that makes $X of (contingent and limited) CRTs the economic equivalent of $Y of upfront equity. So far, no one has been able to do that."
Chairman of the Senate Banking Committee Senator Sherrod Brown apparently is NOT a big fan of the "evil banksters"..."For the first time ever,
@SenateBanking
will hear from the CEOs of the nation's six biggest banks -
and I'm going to hold them accountable for perpetuating a Wall Street System built on profits at everyone else's expense. Tune in. #WallStreetOversight"
Mortgage firm Freddie Mac will move to its new Plano office later this year [The Dallas Morning News]
BY Tribune Content Agency
— 3:48 PM ET 05/25/2021
Mortgage giant Freddie Mac plans to move into its new Plano regional office by the end of this year.
But you didn’t hear that from Freddie Mac or its new landlord.
The Washington-D.C.-based mortgage firm has leased a huge block of office space in the Legacy Central mixed-use campus at U.S. Highway 75 and Legacy Drive.
The lease is one of the largest office deals in Plano over the last year.
Back in January, commercial property firm Transwestern announced that “a Fortune 100 financial corporation is executing a new 155,000-square-foot lease at Legacy Central.” But Transwestern, which leases the office buildings in the project, would not disclose the tenant.
Officials with Freddie Mac did not respond to several requests to give details about the plan to relocate their regional office from its longtime location on Plano Parkway in Carrollton.
And Legacy Central owner California-based Regent Properties won’t talk about the new tenant.
Even so, Freddie Mac plans to move into its new location at 6333 Excellence Way in Plano in November, according to planning documents filed with the state.
The Dallas office of architect HOK is designing the new offices, which will cost more than $13 million to outfit, according to the state filings.
Freddie Mac will join Samsung and Peloton as the largest tenants at Legacy Central. The project is 90% leased.
The 85-acre Legacy Central campus was originally a Texas Instruments complex that Regent Properties purchased in 2016.
The $300 million development has 1 million square feet of offices and also includes apartments, and there are plans for a hotel.
Hana Financial — one of South Korea’s major investors — recently joined the project as part owner of a building that houses more than 1,000 workers for Samsung.
That's right, political tides change from despising mortgage bankers and fleecing them in 2012 to having them help in financing the 3.8 million home supply shortage created from over a decade of under building EACH YEAR for population growth and obsolescence. We'll see what happens.
It's probably a quote from another suit basically telling the judge that Collins will likely impact their current lawsuit against the Government...and before we go to trial and pay for all this expense of bringing in high dollar experts to show you how badly Uncle Suggy screwed us, can we extend the preparation period a little longer...
From todays WSJ: "suburban rents were up 4% in the first quarter of 2021, CoStar said."
https://www.cnbc.com/2021/05/25/why-houses-are-so-expensive-in-the-us.html
An appearance in the video of the prospective NEW FHFA Director, post Collins.
5/25/2021
U.S. House Prices Rise 12.6 Percent over the Last Year; Up 3.5 Percent in the First Quarter
?Washington, D.C. – U.S. house prices rose 12.6 percent from the first quarter of 2020 to the first quarter of 2021 according to the Federal Housing Finance Agency House Price Index (FHFA HPI®). House prices were up 3.5 percent compared to the fourth quarter of 2020. FHFA's seasonally adjusted monthly index for March was up 1.4 percent from February.
“House price growth over the prior year clocked in at more than twice the rate of growth observed in the first quarter of 2020, just before the effects of the pandemic were felt in housing markets," said Dr. Lynn Fisher, Deputy Director of FHFA's Division of Research and Statistics. “In March, rates of appreciation continued to climb, exceeding 15 percent over the year in the Pacific, Mountain and New England census divisions."
View highlights video featuring Dr. Lynn Fisher at https://go.usa.gov/xHuY5.
Significant Findings
House prices have risen for 39 consecutive quarters, or since September 2011.
House prices rose in all 50 states and the District of Columbia between the first quarters of 2020 and 2021. The top five states with the highest annual appreciation were: 1) Idaho 23.7 percent; 2) Utah 19.2 percent; 3) Arizona 17.4 percent; 4) New Hampshire 16.2 percent; and 5) Connecticut 15.9 percent. The states showing the lowest annual appreciation were: 1) Hawaii 4.7 percent; 2) Louisiana 6.8 percent; 3) Wyoming 6.9 percent; 4) North Dakota 7.5 percent; and 5) Mississippi 8.1 percent.
House prices rose in 99 of the top 100 largest metropolitan areas in the U.S. over the last four quarters. Annual price increases were greatest in Boise City, ID, where prices increased by 28.2 percent. Prices were weakest in Urban Honolulu, HI, where they decreased by 0.7 percent.
Of the nine census divisions, the Mountain division experienced the strongest four-quarter appreciation, posting a 15.7 percent gain between the first quarters of 2020 and 2021 and a 4.8 percent increase in the first quarter of 2021. The Mountain division has led in annual growth for 14 quarters. Annual house price appreciation was weakest in the West South Central division, where prices rose by 11.1 percent between the first quarters of 2020 and 2021.
Trends in the Top 100 Metropolitan Statistical Areas are available in our interactive dashboard: https://www.fhfa.gov/DataTools/Tools/Pages/FHFA-HPI-Top-100-Metro-Area-Rankings.aspx. The first tab displays rankings while the second tab offers charts.
The FHFA HPI is the nation's only collection of public, freely-available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.
FHFA releases HPI data and reports on a quarterly and monthly basis. The flagship FHFA HPI uses seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac. Additional indexes use other data including refinances, FHA mortgages, and real property records. All the indexes, including their historic values, and information about future HPI release dates are available on FHFA's website: https://www.fhfa.gov/HPI.
Tables and graphs showing home price statistics for metropolitan areas, states, census divisions, and the U.S. are included on the following pages.
Note
The next monthly HPI report (including data through April 2021) will be released June 29, 2021 and the next quarterly HPI report (including data for the second quarter of 2021 and monthly data for June) will be released August 31, 2021.
Release dates for 2021 are posted at https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx#ReleaseDates.
Follow @FHFA on Twitter, LinkedIn, Facebook, and YouTube for more HPI news.
Attachments:
Download
FHFA House Price Index Report - 2021 Q1
1.9 MB
###
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.9 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.
Contacts:
Media: Adam Russell Adam.Russell@FHFA.gov / Raffi Williams Raffi.Williams@FHFA.gov
April 2021 Highlights: ? The total mortgage portfolio increased at an annualized rate of 13.2% in April. ? Single-family refinance-loan purchase and guarantee volume was $82.9 billion in April, representing 72% of total
single-family mortgage portfolio purchases and issuances. ? The aggregate unpaid principal balance (UPB) of our mortgage-related investments portfolio decreased by
approximately $31.3 billion in April. ? Freddie Mac mortgage-related securities and other mortgage-related guarantees increased at an annualized rate
of 27.2% in April. ? Our single-family delinquency rate decreased from 2.34% in March to 2.15% in April . Our multifamily
delinquency rate increased from 0.17% in March to 0.20% in April. ? The measure of our exposure to changes in portfolio value (PVS-L) averaged $13 million in April. Duration gap
averaged 0 months. ? Since September 2008, Freddie Mac has been operating in conservatorship, with the Federal Housing Finance
Agency (FHFA) acting as Conservator. ? As of April, our maximum exposure to Fannie Mae-issued collateral that was included in Freddie Mac-issued
resecuritizations was approximately $94.0 billion, and is not in Table 4
https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-issues-monthly-volume-summary-april-2021?_ga=2.109678469.102510522.1621820714-422910918.1606962161
Some of it does seem temporary, would you feel comfortable letting a small army of prospective buyers wander aimlessly around the inside of your house, with less than 1/2 of the American population fully vaccinated? Then where would you go once you sold your current "castle"?
Would you rather sit on your arse all day, collecting MORE in Unemployment Benefits than you can make busting your arse in the labor market?
Are school closings and online learning causing millions of Americans being unable to join the workforce denting the supply of labor?
Will manufacturers continue to utilize dirt cheap labor and regulation and tax costs overseas to provide wealthier nations all the low cost stuff they can consume?
Inquiring minds want to know....
"Released March 18, 2021
G20-QTAX4
STATE AND LOCAL GOVERNMENT TAX
REVENUE2
The fourth quarter of 2020 combined tax revenues
for property, sales and gross receipts, and income
taxes increased 6.8 percent to $426.4 billion from
$399.3 billion in the same quarter of 2019.3
Property tax revenue
The estimated total for the fourth quarter of 2020
state and local property tax revenue increased 4.2
percent to $164.1 billion (±7.7 billion). This is not
statistically significant from the $157.5 billion (±7.5
billion) collected in the same quarter of 2019.
Individual income tax collections
Individual income tax collections in the fourth
quarter of 2020 showed an increase of 9.5 percent
to $122.9 billion (±0.5 billion), from $112.2 billion
(±0.3 billion) collected in the same quarter of 2019.
General sales and gross receipts tax revenue
General sales and gross receipts tax revenue
increased 4.6 percent to $115.9 billion (±1.9 billion) in
the fourth quarter of 2020, from $110.8 billion (±0.9
billion) collected in the same quarter of 2019.
Corporation net income tax revenue
Corporation net income tax revenue for the fourth
quarter of 2020 was $23.6 billion (±0.09 billion),
an increase of 25.6 percent from the $18.8 billion
(±0.07 billion) collected in the same quarter of
2019.
STATE TAX COLLECTIONS4
Total state tax revenue increased 7.0 percent to
$273.9 billion in the fourth quarter of 2020, from
$256.1 billion reported in the same quarter of 2019.
Individual income tax, at $98.5 billion, was up 10.1
percent from $89.5 billion in the same quarter of
2019. General sales and gross receipts taxes, which
accounted for $88.3 billion, increased 3.8 percent
from $85.0 billion in the same quarter of 2019. At
$17.0 billion, corporation net income tax collections
increased 31.6 percent from the $12.9 billion
collected in the same quarter in 2019. In the fourth
quarter of 2020, the majority of the states’ largest
tax by value of collection was either individual
income tax or general sales and gross receipts
tax.
The data and technical documentation for this release can be found at <www.census.gov/programs-surveys/qtax.html>.
‘If I could go back in time … I’d have bought 30 homes’ https://www.stgeorgeutah.com/news/archive/2021/05/21/ddy-we-dont-have-inventory-southern-utah-builders-and-realtors-navigate-complicated-market/#.YKwb2VUpA1I
I wonder if the skeptics will be saying the same thing?
“But this thing really started in 2014,” Larkin said. “The 2008 crash was brought about by overbuilding and careless speculation. Since then, we’ve been underbuilding.”
That led to what mortgage lender Freddie Mac called “one of the most important challenges the industry will face.” The U.S., said economists at Freddie Mac, is 3.8 million starter homes short of buyer demand.
“Today, we’ve got the opposite of what happened in 2008,” Larkin said. “We’re undersupplied, and there is no careless speculation. There’s a lot of people who are looking for homes, and they’re not afraid to spend. And this isn’t just in St. George; it’s nationwide.”
"In his resignation letter to the President, Luttig cited the financial needs posed by two children rapidly approaching college age."
https://www.npr.org/templates/story/story.php?storyId=5396966