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Nicely done Golfbum! MC is like, "I wonder why they're mad, the government threw them a concrete life preserver and have only been stealing their profits for over 12.5 years?"
Bravo! Well said, Navy! Every time I hear MC say, "from becoming insolvent again" or that "the nws is over", I just shake my head ruefully!
The Moderator should have asked, "Did you enjoy David Thompson's final statement to the SCOTUS, quoting you verbatim?"
or, "How did it make you feel when SM threw you under the bus?"
or, "Nice suit, have you been interviewing for a new job with the TBTF BANKS?"
https://www.housingwire.com/articles/mortgage-applications-jump-as-rates-fall-to-2-96/
No, the SCOTUS is meeting for their 1st conference in May tomorrow, they haven't had to prepare for oral arguments since the 1st Tuesday of May. That means they have had time to do their most important job, writing opinions. I'm sure that they are thinking, with 33 decisions to write between the end of oral arguments and the 4th of July, that they naturally want to begin their Summer Vacation. They have likely been fairly busy writing opinions since their last conference meeting in April.
They will then decide at tomorrows conference meeting which opinions are ready for release, what's still in the pipeline, and how it is going on all the undecided cases.
For the one or more opinions ready for release they will announce our favorite time lately, the opinion release date, usually it will be the following Thursday, but they are the Supremes so Friday, Monday, whatever they want to do.
Remember, that the Collins and ACA cases are similar in that they both deal with the courts approach to "Severability Analysis" (which is kinda the courts way of REWRITING LARGE LEGISLATIVE ACTS, even though it is largely understood that writing the laws are for the Legislative Branch of government) and therefore Collins will have to mesh with the legal reasoning in California v Texas (the ACA Case), SO I THINK WE MAY BE WAITING FOR A WHILE, as they do the low hanging fruit cases first that they generally mostly agree with.
On the other hand, it COULD be as early as Friday, but I'm pretty sure not tomorrow, but who really knows except the SCOTUS?
https://www.scotusblog.com/case-files/terms/ot2020/
They could what's known as DIG the case, but take a look at Judge Gorsuch's response to that suggestion from Aaron Nelson, the court appointed attorney that posed that very proposition to the court. Remember that the SCOTUS hand picked this case by granting a Writ of Certerrori back in 2019, there is a split in the federal circuits relating to multiple pending litigation on the Governments Nationalization of the gses, and if they decide to overrule Humphreys Executor, the Collins case will be uttered in courtrooms as precedent well after all of our lifetimes... We'll see what happens!
Okay, still the risk to reward ratio for BOTH common and jps seems compelling. Of course the SCOTUS could say sure the anti injunction clause applies here, but an adverse ruling for the Collins Plaintiffs seems unlikely given the EnBanc courts solid and thorough look at these legal issues.
We'll see what happens! I would imagine after their conference tomorrow they will have more than 1 decision ready, PROBABLY SOME LOW HANGING FRUIT CASES THAT THEY CAN MOSTLY AGREE ON. I think there are 32 cases left before the Justices can pack up their cars and head out for their Summer Vacations, likely by the 4th of July weekend. ...
It's almost comical that everyone agrees that the future of the gses should be viewed their way to the exclusion of competing ways! Here's a crazy idea, AFTER 12.5+ years of getting nowhere, just follow HERA and put them back the way they were!
https://wwmt.com/amp/news/local/real-estate-agents-say-west-michigan-housing-market-is-booming-but-comes-with-setbacks
Funny how MC FORGOT TO MENTION THAT THE THEFT CONTINUES THROUGH THE LIQUIDATION PREFERENCE!
This is a great example of the beginning of the race to the bottom in the Primary Mortgage Market that WILL OCCUR in the Secondary Mortgage Market if Uncle Sugar hands out explicit MBS guarantee federal charters:
https://amp.freep.com/amp/5021895001
Act II is coming: The DECREASE in loan underwriting standards...stick around and watch.
I can sum up MC's comments as they are the exact same since he was nominated, "THEY NEED MORE CAPITAL!". This whole "living will" for banks stuff sounds great on paper, BUT THE GUBMINT WILL LIKELY STEP IN SOMEHOW ANYWAY INSTEAD OF STANDING BY WATCHING THE CITIZENS DROWNING IN THE NEXT INEVITABLE FINANCIAL CRISIS! I think the idea is to make the next one less painful somehow, but the best laid plans of mice and men....
Pretreat the gubmint theft spots with a nice SCOTUS ruling BEFORE YOU DO ANYTHING! Have you ever used your local OXY CLEAN Carpet cleaning franchisee, AWESOME!!!!!
I thought the "brain trust" brought up an interesting point about whether or not the implicit guarantee on the gses subordinated debt survives in the "bad bank" and what implications that would have on gses funding costs and hence what Americans pay for their biggest monthly expense...
Really enjoyed it, especially the commentary from the "brain trust" at the end, thanks!
Oh okay so some rough back of the envelope calculations, say 80% redemption in 5 years or 80-19=71, that would be a potential 375% return of approximately 75%/year. Not too shabby, BUT I STILL THINK COMMON HAS MORE ROOM TO RUN OVER THE NEXT 5 YEARS AND ALOT EASIER TO DO AT $2/SHARE, YOU WOULD ONLY NEED TO SEE $10/SHARE....
Is that the $50,000 par jps?
Freddie Mac Prices $938 Million Multifamily K-Deal, K-F111
May 11, 2021
MCLEAN, Va. , May 11, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through
Certificates (K Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The
approximately $938 million in K Certificates (K-F111 Certificates) are expected to settle on or about May 20, 2021. The K-F111 Certificates are backed
by floating-rate multifamily mortgages with 10-year terms, which are SOFR-based.
K-F111 Pricing
Class
Principal/Notional
Amount (mm)
Weighted Average Life
(Years) Discount Margin Coupon Dollar Price
AS $938.461 9.52 24 30-day SOFR avg + 24 100.000
XS Non-Offered
Details
Co-Lead Managers and Joint Bookrunners: Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
Co-Managers: Academy Securities, Inc., Citigroup Global Markets Inc., Performance Trust Capital Partners, LLC and Wells
Fargo Securities, LLC
Related Links
The K-F111 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/0kf111oc.pdf
Freddie Mac Multifamily Securitization Overview
Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-F111 Certificates will not be rated and will include one senior principal and interest class and one interest-only class that is also entitled to static
prepayment premiums. The K-F111 Certificates are backed by corresponding classes issued by the FREMF 2021-KF111 Mortgage Trust (KF111
Trust) and guaranteed by Freddie Mac. The KF111 Trust will also issue certificates consisting of the Class CS and R Certificates, which will be
subordinate to the classes backing the K-F111 Certificates and will not be guaranteed by Freddie Mac.
TH today on MC's flawed gses are international commercial banks analogy: "The “living will” requirement comes from Section 165(d) of the Dodd-Frank Act, requiring that “bank holding companies with total consolidated assets of $50 billion or more and nonbank financial companies designated by the Financial Stability Oversight Council (FSOC) for supervision by the Federal Reserve periodically submit resolution plans to the Federal Reserve and the Federal Deposit Insurance Corporation.” HERA does not make any reference to living wills, let alone authorize FHFA to require them of Fannie and Freddie.
The living wills are another clear example of FHFA Director Calabria imposing rules and regulations designed for large multinational banks on Fannie and Freddie. The former CEO of Freddie Mac, Don Layton, wrote a scathing critique of the FHFA living will proposal this past February, titled “The FHFA’s Proposed GSE ‘Living Will’ Rule,” with the subheading of “Fatally Flawed and Unusually Vague.” In this piece, Layton correctly pointed out that (a) the structures of Fannie and Freddie are “ultra simple” compared with large multinational banks, (b) over 90 percent of companies’ assets are financed as MBS, which are not subject to illiquidity risks, and (c) receivership would not be the policy choice in the highly unlikely event that either Fannie or Freddie were to experience financial difficulty, given the existence of the Treasury senior preferred stock agreements. Indeed, this last point is one of the two “fatal flaws” Layton identifies in the FHFA exercise: “The denial that the government support agreement for the GSEs exists and can be relied upon.” (The second fatal flaw is “the requirement that the GSEs plan to continue operations in receivership without that support, despite its being necessary and integral to their business model.”) Layton concludes from his analysis that the FHFA living will proposal “seems to be more a policy document than a technical one, reflecting FHFA Director Mark Calabria’s well-known policy objective of shrinking the GSEs’ footprint.”
I agree with that conclusion. Calabria has made no secret of his intent to use bank-like capital and regulation to effectively eliminate the advantages of Fannie and Freddie’s federal charters, and thus their abilities to continue to provide the type of secondary mortgage market support for low- moderate- and middle-income homebuyers they had been so successful at doing prior to their conservatorships. (This also is the reason for the caps placed on various types of higher-risk business in the January letter agreement with Treasury: Calabria wishes to convey the sense that until Fannie and Freddie can attain the capital levels he is requiring of them, allowing them to do more than the capped amounts of these business types presents too much risk risk to the taxpayer, which is preposterous.) Calabria is not going to change his approach to regulation or capitalization, so the only way to meet the objectives of all of the companies’ stakeholders–homebuyers, mortgage lenders, investors and employees–is for the Biden administration to change its FHFA director, which it should do at its earliest opportunity."
Lenders Prepare for Mortgage Slowdown --- Decline in demand fuels price wars across industry, pushing down profits. Headline from todays WSJ.
He's fun to read, BUT just like MC and many R's, THEY FAIL TO EVER MENTION THAT PRIVATE MBS MARKETS HAVE BEEN TRIED 4 PREVIOUS TIMES IN US HISTORY AND FAILED DISASTEROUSLY EACH TIME! Why? Because of the inevitable race to the bottom in both loan quality and pricing! I mean look at Rocket, UMW, and Loan Depot, their profit margins per loan are falling rapidly as they try to under price each other and it WILL JUST BE A MATTER OF TIME BEFORE LOAN UNDERWRITERS ARE INCENTIVIZED TO LOOK THE OTHER WAY AS LOAN QUALITY DECREASES!
https://www.banking.senate.gov/download/091311levitin-testimony
"I am nonetheless opposed to proposals to eliminate any government guarantee from the
housing finance system. My opposition is based on practical realities, not ideological grounds.
It is important that we not allow our ideological predilections get in the way of common sense.
Despite privatization’s ideological appeal, there is a fundamental problem with privatization
proposals for the housing finance system: they don’t work. Indeed, fully private housing
finance systems simply do not exist in the developed world."
Right, that's why I mentioned the shifting political priorities today versus 2012 and the possibility of the Executive branch easily trading off LPs and Warrants to help Affordable Housing more. The SCOTUS could always rule that the anti injunction provision is somehow valid but that seems like a unrealistic ruling given the thorough legal analysis of the 5th Circuit EnBanc Panel. We'll see what happens!
That's really been the problem from the original strong arming of the Board of Directors FROM DAY 1! It is only on August 17th, 2012 did everyone realize the magnitude and duration of the Nationalization. Even under SM, an alleged Capitalist, did we realize JUST HOW DIFFICULT IT IS FOR THE GOVERNMENT TO GIVE UP THEIR GOLDEN GOOSE. Really looks like the non elected lifetime appointed SCOTUS is the right branch of government to force this 12.5+ year injustice to end.
Theoretically the federal government is a non profit organization and while elected officials scored major political points by "sticking it to the evil banksters" in 2012 and funding the ACA when Congress refused to, today, the new Sheriff in town (I think his name is Joe Sanders, right?) the major political points will be scored by making progress in assisting hard working American families with their now desperately needed access to Affordable Housing and trying to help them build wealth that is possible through homeownership....
"Why would this time be any different?". Having the SCOTUS rule that the nws is invalid (whether via the APA Claim or by ruling an unconstitionally insulated Directors actions are void ab initio) as well as ruling on the direct versus derivative claim issue and the anti injunction issue in favor of Collins and a $30B credit and the LP to zero would be a major positive development. I still think there's a MAXIMUM 10% chance the SCOTUS BULLDOZES HERA and puts the parties back into the positions they were in pre HERA (What better way for the Judicial Branch to send a strong message to the Legislative Branch to quit experimenting on the American People by inventing untested Agency structures that can infringe on the Liberties of the Citizens and relying on the SCOTUS to rewrite and fix these gargantuan Acts years later via "Severability Analysis" doctrine?)
From here you and I differ namely in the urgency of recap and amount of dilution.
BUT WE ALL WILL DO BETTER ONCE WE GET THE GOVERNMENTS BOOT OFF OUR NECK SINCE ITS BEEN THERE FOR OVER ONE EIGHT OF A CENTURY OR 12.5+ YEARS AND FOR SOME REASON THAT IS BEYOND ME THEY REFUSE TO TAKE IT OFF!
U.S. Department of the Treasury
Emergency Rental Assistance
Fact Sheet
May 7, 2021
Fact Sheet: The Biden-Harris Administration Announces Enhanced Efforts to
Prevent Evictions and Provide Emergency Assistance to Renters
Even as the American economy continues its recovery from the devastating impact of the
pandemic, millions of Americans face deep rental debt and fear evictions and loss of basic
housing security. Countless middleclass landlords who rely on rental income to support their
families have also faced deep financial distress to the COVID-19 crisis. Nearly 7 million
Americans reported being behind on rent in the second half of April. More than 40 percent of
those renters worry that they could be evicted sometime in the next two months. Almost 12
million Americans lack confidence that they can make next month’s rent. Evictions can have
long-lasting consequences for families—potentially disrupting school, worsening health,
displacing neighborhood networks of support, and making it more difficult to find safe,
affordable housing in the future. COVID-19 has exacerbated an affordable housing crisis that
predated the pandemic and that has exacerbated deep disparities that threaten the strength of an
economic recovery that must work for everyone.
Today, the Biden-Harris Administration is announcing the allocation of the additional $21.6
billion under the American Rescue Plan for Emergency Rental Assistance – including $2.5
billion targeted to the highest-need areas, where job loss and high market costs have made it
especially difficult for low-income renters. Together with this additional financial support, the
Biden-Harris Administration is implementing additional, stronger guidance to spur more funds
getting to those renters most desperately in need of assistance to avoid evictions and secure
housing stability. This new guidance recognizes the need to deliver more funding directly to
renters to both prevent evictions and ensure those requiring new housing have the financial
support needed. These resources and guidance represent an all-of-government approach that
leverages authorities and agencies across the entire Administration, from the Treasury
Department to the Department of Housing and Urban Development to the White House
American Rescue Plan Implementation Team and Policy Councils. This infusion of additional
support will benefit both renters and landlords and make sure that the states and localities that
have moved quickly to address the housing affordability crises wrought by the public health
emergency and its negative economic impacts in their areas will continue to have the resources
they need to fully meet the challenge.
Nine Enhanced Policies to Directly Aid Renters, Prevent Evictions and Help Americans
Transition to Secure Housing: Today the Biden-Harris Administration is taking nine steps to
stress the importance of ensuring emergency rental assistance reaches the Americans who need it
most.
1. Requires – for the First Time – Programs to Offer Assistance Directly to Renters if
Landlords Choose not to Participate. Today, the Treasury guidance makes clear that
emergency rental assistance provided by the American Rescue Plan (ERA2) must be
offered directly to renters when landlords do not accept payment. This will speed up
payments to Americans who are most in need. Many landlords are working with tenants
in good faith to secure aid and pay off rental debts. However, it is unacceptable to allow
Americans to suffer eviction or homelessness simply because some landlords are turning
down Federal aid on their behalf.
2. Cuts in Half the Wait for Assistance Offered to Renters When Landlords Do Not
Participate. In addition to requiring direct aid to tenants if a landlord refuses to
participate, Treasury is cutting in half the time to determine whether a landlord elects to
participate is being cut in half. Currently, where assistance is first offered to landlords,
programs must wait 14 days when reaching out by mail or 10 days when reaching out by
phone, text, or email before offering relief to a tenant directly. Those wait times will now
be cut in half, to 7 days and 5 days respectively.
3. Allows – For the First Time – Offers of Assistance Directly to Renters First. While
rental assistance programs under the initial Emergency Rental Assistance Plan – ERA1 –
required an offer of assistance to landlords before reaching out to renters, today the
Biden-Harris Administration has made clear that the new funds from the American
Rescue Plan (ERA2) can be used to provide assistance to renters first and immediately.
4. Encourages Financial Assistance to Support Renters Finding New Housing. While
the Biden-Harris Administration will continue to do everything in its power to spur the
use of Emergency Rental Assistance to keep people in their homes, the new guidance
recognizes that there may be increased need over the coming months for more hard-
pressed renters to find new housing. For Emergency Rental Assistance to meet its
housing security goals, the funds may need to be increasingly available to cover such
costs as moving expenses, security deposits, future rent, utilities, and the cost of a
transitional stay in a hotel or motel when a family has been displaced. The Treasury
guidance reinforces that each of these expenses should be considered eligible – and
encouraged – uses of emergency rental assistance.
5. Protects Renters from Eviction While Payments Are Being Made on Their Behalf.
Starting with today’s guidance, programs must prohibit the eviction of renters for
nonpayment in months for which they receive emergency rental assistance. While most
landlords are working to secure relief and help renters stay in place, Treasury strongly
encourages grantees to require that landlords not evict tenants for nonpayment of rent for
30 to 90 days longer than the period covered by the emergency rental assistance as a
condition of receiving payment.
6. Prohibits Grantees from Establishing Documentation Requirements that Would
Reduce Participation. Today’s guidance makes clear that “Treasury strongly encourages
grantees to avoid establishing documentation requirements that are likely to be barriers to
participation for eligible households,” matching the rules for the Homeowner Assistance
Fund, as suggested by many housing experts and advocates. Unnecessary documentation
requirements too often pose significant barriers to participation in the Emergency Rental Assistance program, preventing families that need assistance from being able to receive
it.
7. Reduces Burdensome Documentation by Allowing Programs to Verify Eligibility of
Low-Income Renters Based on Readily Available Information or “Proxies.” Instead
of documentation requirements that could prevent some of the most vulnerable renters
from completing applications and receiving assistance, programs will now be able to
verify the income eligibility of renters using any reasonable fact-specific proxy, such as
the average income in the neighborhood in which renters live.
8. Prohibits ERA2 Programs from Denying Assistance to Eligible Residents Solely
Because They Live in Federally Assisted Housing. As Treasury guidance states:
“Grantees are required to comply with Title VI of the Civil Rights Act and should
evaluate whether their policies and practices regarding assistance to households that
occupy federally subsidized residential or mixed-use properties or receive federal rental
assistance comply with Title VI. With respect to ERA2, grantees must not refuse to
provide assistance to households on the basis that they occupy such properties or receive
such assistance, due to the disproportionate effect such a refusal could have on
populations intended to receive assistance under the ERA and the potential for such a
practice to violate applicable law, including Title VI.” The guidance further encourages
grantees to partner with the owners of federally subsidized housing to ensure their
residents are reached.
9. Requires Programs to Document their Prioritization of Assistance to the Renters
Most in Need. Programs are required to prioritize assistance to low-income households
and those with members who have been unemployed for more than 90 days. To help
ensure that assistance is reaching those who most need it most – especially those with
incomes below 50 percent of the area median income – grantees will be required to report
how they will achieve the required prioritization of assistance.
II. ADDITIONAL ALL-OF-GOVERNMENT EFFORTS TO PREVENT EVICTIONS
AND ENSURE HOUSING SECURITY:
In addition to this new funding and these new policies, there will be an ongoing all-of-
government response to address the COVID-driven housing crisis and keep renters in their
homes. The Administration will continue to aggressively support these emergency rental
assistance efforts—including growing and strengthening the capacity of grantees to rapidly
deploy these critical resources and target them to those most in need–in the weeks ahead.
Examples include:
• Deploying Joint HUD-Treasury Expert Response Teams: The Departments of
Housing and Urban Development (HUD) and Treasury are finalizing an Interagency
Agreement to send experts to some of the highest need areas to help states and localities
urgently scale-up programs. More immediately, HUD will provide technical assistance on
its programs to help grantees manage all their new CARES Act and American Rescue
Plan resources. Many HUD and ERA grantees are the same. Providing support through HUD programs will build capacity and solve challenges as they manage unprecedented
resources.
• Improving Access to Information about Emergency Rental Assistance: Treasury will
provide an online hub of links to local emergency rental assistance programs to make it
easier for renters and landlords to find programs in their area and will work with other
government agencies and private sector partners to increase awareness of ERA resources
among renters and landlords.
• Lifting up Best Practices: Treasury staff are actively engaging grantees to answer
questions and learn about best practices. Treasury will publish best practice highlights
that are speeding vulnerable renters’ access to these urgently needed resources.
• Hosting a White House-HUD-Treasury Roundtable to Encourage Philanthropic
Investment in Anti-Eviction Efforts: These agencies will jointly host a roundtable with
philanthropic leaders to explore how philanthropy can support communities’ distribution
of new federal funds for housing instability and homelessness, including how
philanthropy can enhance the underlying capacity of local partners to equitably distribute
these funds.
• Encouraging Additional Legal Services and Support to Hard Pressed Tenants: HUD
is developing a $20 million demonstration to provide legal assistance to low-income
tenants at risk of or subject to evictions. More information on this new program can be
found here.
• Providing Guidance to Operators of Assisted Housing: HUD is publishing toolkits,
hosting webinars, and amplifying its correspondence with public housing authorities and
other operators of assisted housing in an effort to promote eviction prevention strategies
and resources.
• Advancing the Nation's Understanding of Evictions in the Marketplace: HUD will
continue to build out a research agenda for helping the field better understand the
prevalence of evictions and the disparate impact they have on disadvantaged
communities. This includes assessing how the federal government could develop a
national database of evictions.
• Promoting Fair Housing Enforcement: HUD will continue to enforce fair housing
protections, prohibiting housing providers from acting to evict, harass, or treat tenants
differently because of tenants’ race, color, religion, sex (including sexual orientation and
gender identity), disability, familial status, or national origin. If tenants think they have
experienced discriminatory treatment, they can contact HUD's Office of Fair Housing
and Equal Opportunity at (800) 669-9777 (voice) or (800) 877-8339 (Relay). They may
also file discrimination complaints online at hud.gov/fair housing.
Treasury Announces Additional $21.6 Billion in Emergency Rental Assistance Allocation
May 7, 2021
Today’s Announcement Includes Strengthened Guidance to Expedite Resources and Prevent Evictions Due to the Affordable Housing Challenges Exacerbated by Covid-19
WASHINGTON – Today, the U.S. Department of the Treasury, in coordination with the White House American Rescue Plan Implementation Team and the U.S. Department of Housing and Urban Development, announced the allocation of an additional $21.6 billion under the American Rescue Plan for Emergency Rental Assistance, which will help prevent evictions and ensure basic housing security for millions of Americans impacted by the affordable housing challenges exacerbated by COVID-19.
In addition to this financial support, Treasury issued updated, strengthened guidance to expedite funds to renters and target those most severely in need of assistance. For example, the guidance makes clear that the $21.6 billion of emergency rental assistance made available through this program must be offered directly to renters when landlords do not accept direct payment. The guidance also reduces burdensome documentation requirements and wait times that can slow down assistance.
This infusion of additional support will benefit both renters and landlords and make sure states and localities that have moved quickly to address housing affordability challenges wrought by the public health emergency and its negative economic impacts in their areas will continue to have the resources they need to serve their communities.
These latest resources and guidance represent an all-of-government approach that leverages authorities and agencies across the entire Administration, including the Department of the Treasury, the Department of Housing and Urban Development, and the White House American Rescue Plan Implementation Team.
The fact sheet on the additional financial support and guidance is available here
"Collins Cheat Sheet
Two things to look for in the SCOTUS opinion
Rule of Law Guy
May 3
What should you look for in the SCOTUS Collins majority opinion? I offer two important questions that GSE investors should be particularly interested to see how SCOTUS answers.
Is the Net Worth Sweep inimical to the Conservator’s duties?
SCOTUS and the federal Circuit Courts are reviewing courts…they review the decision below, and decide whether to vacate, modify or affirm the decision below. The decision below in Collins, by the 5th Circuit Court of Appeals en banc, itself reversed the federal District Court judgment that granted the United States motion to dismiss the plaintiffs’ APA claim that the NWS was ultra vires, or not within the power of the FHFA as conservator to adopt.
So, whereas the federal District Court held that the Collins plaintiffs could show no facts which would prove that the NWS was outside the Conservator’s powers, the 5th Circuit held that the Collins plaintiffs had made a “plausible showing” (the minimum necessary to defeat the United States’ motion to dismiss) that the NWS was outside the Conservator’s powers, and therefore void. So the District Court was wrong to dismiss the action, and should schedule the case for trial on remand.
What was the difference between the federal District Court’s and 5th Circuit’s analyses? The District Court bought the United States argument that the Conservator could do anything so long as what the Conservator did could be construed as managing the affairs of the GSEs. The 5th Circuit rejected this analysis and concluded that the Conservator had a duty to conserve and preserve the assets of the GSEs, and do such things as may rehabilitate the GSEs back to safety and soundness.
Therefore, the 5th Circuit held that the Collins plaintiffs should have the opportunity to go back to the District court to argue that, based upon its evidence and applying the proper legal standard as set forth by the 5th Circuit, the NWS was ultra vires and therefore void.
I expect SCOTUS, at a minimum, will affirm the 5th Circuit decision, setting forth what it considers to be the correct legal standard relating to the Conservator’s duty for the District Court to adopt upon remand. Presumably if SCOTUS affirms the 5th Circuit, then SCOTUS’s analytical framework should resemble that of the 5th Circuit. The net result will be a remand to the District Court for a trial. The Collins plaintiffs may be able to short circuit the need for a full trial by moving for summary judgment at the District Court, as I discuss in a prior post, which the District Court could grant more quickly than a judgment after trial.
But will SCOTUS go further than the 5th Circuit, to the benefit of the Collins plaintiffs? Consider these questions:
Is there any set of facts under which the NWS could be fairly construed to further the Conservator’s rehabilitative mission? The stated purpose of the NWS is to drain off all of the GSEs’ capital for the benefit of the Treasury, leaving the GSEs with no capital to insulate them from losses arising from their trillions of dollars of guaranty obligations. The foremost indicium of safety and soundness for financial institutions such as the GSEs is a robust capital position. How does reducing the GSEs’ capital to zero promote safety and soundness, which the 5th Circuit found to be the Conservator’s duty?"
Normally I hire a crew of guys to come and knock it out and I use my dividend checks from FNMA and FMCC to pay for it, BUT I HAVEN'T RECEIVED MY CHECK IN A LONG TIME, DO YOU THINK IT'S IN THE MAIL?
I watched Toll Brothers develop Dominion Valley over the years and the homes they developed there are fantastic! That community is so large I think they agreed to pay to widen Route 15 and my son played Little League ball over at Long Park for many years. A couple of the coaches houses were on the other side of 15 with single family homes on a minimum 5 to 10 acres and most had extensive baseball training facilities for their kids on their properties and we would come over and practice there. The coaches were usually who you would expect, doctors, lawyers, finance professionals and business owners.
It's just a shame that while Mario Ugoletti lives in the lap of luxury during retirement (have you seen the golf courses and pools!) as a result of his Government tenure, the tens of thousands of bilked hard working American retirees have seen their retirement savings suffer as a result of his lack of candor and apparently deceiving Judge Lamberth in his testimony.
Isn't it suppose to be a Government for the people by the people and not a Government for the Government at the expense of the People?
I think Nats1 could tell you, but normally when calculating their lifetime monthly retirement benefits the final 3 to 5 years of pay are typically very important. He pulled down over 7 figures in his last 5 years of service, WHILE SCREWING OVER 10'S OF THOUSANDS OF HARD WORKING AMERICANS RETIREMENT FUNDS!
Editorial in todays WSJ: "Using public-health powers, the Centers for Disease Control and Prevention (CDC) last year issued an order banning the eviction of millions of tenants. The latest extension pushes that order through June 30, and the threatened penalties for disobedient landlords go as high as $250,000 and a year in jail. Where does the CDC get this power? It isn't the Centers for Rent Control.
A 1944 law, the Public Health Service Act, lets the CDC write regulations that it judges "necessary" to stop disease from entering the U.S. or from spreading between states. To carry out that mandate, the CDC "may provide for such inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous infection to human beings, and other measures."
If interpreted as a broad grant of authority, with a catchall phrase for "other measures," that could mean practically anything. But to steal a game from "Sesame Street," one of these three things doesn't belong: fumigation; pest extermination; and an eviction ban that applies to every residence in the nation.
In a ruling Wednesday, federal Judge Dabney Friedrich placed the statutory language in its proper context, saying that the CDC's catchall rules must relate to "animals or articles" that are infected or contaminated. "The national eviction moratorium," she wrote, "satisfies none of these textual limitations."
Accepting the CDC's position, Judge Friedrich said, "would mean that Congress delegated" to the executive branch a sweeping power "to resolve not only this important question, but endless others." The only real limit would be a need to gesture toward a link to illness.
This obviously isn't what Congress was delegating to the CDC, and other district courts have also said the eviction ban exceeds the law. Both parties are guilty, since the policy began under President Trump and was extended under President Biden. But the legal problem for constitutionalists is if the order lapses on June 30, as it should, then these cases might be moot. The risk of unconstitutional government rises if politicians get away with it."
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
On May 4, 2021, Celeste M. Brown, Executive Vice President and Chief Financial Officer of Fannie Mae (formally, the Federal National
Mortgage Association), notified Fannie Mae that she is resigning from her position effective May 28, 2021. The company plans to appoint an
interim principal financial officer prior to Ms. Brown’s departure and conduct a search for her successor.
Their next conference meeting is next Thursday, recall that they haven't had to hear any cases since the first Tuesday of May. They have a lot of opinions left to write it they are going away for the 4th of July to start their Summer Vacation. I'm sure that they will have at least one opinion ready when they meet next Thursday and typically they release on the following Thursdays. But I'm sure if they want to they could release on a Friday or Monday, etc.
I know I have waited over 12.5 years so just try to be patient, these are fairly lofty decisions that could have yuge impacts on federal agency Administrative Law and they want to make sure they get it right and that it is in harmony with California v Texas, the Affordable Care Act case....
So if jps wins on their breach of contract claim in Judge Lamberth's courtroom, who pays damages, UST for hiding material information from the investing public? Are jps Plaintiffs suing UST, FHFA, AND THE GSES OR just da gubmint?