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https://www.yahoo.com/news/biden-fired-trump-appointed-lawyer-190554563.html
"I find the action taken today by the White House against our independent agency to be deeply troubling, a break from long-established norms respected by presidents of both parties, an injection of partisanship where it had been absent, and telling evidence of what 'unity' actually means to this President and his Administration," Lucas tweeted.
I wonder if she had "for cause" protection?
"Justice Gorsuch asks if a constitutionally appointed director could later ratify the past arrangement. Thompson charges that the government cannot just time travel back when the underlying rationale has been exposed as invalid eight years later."
"Justice Kavanaugh says that the solicitor general stated the court has subjected structural constitutional claims to the general law of remedies, and courts may deny relief based on a variety of principles. What that shows is that vacating the challenged action is permissible but not necessarily mandatory. Thompson states that these principles do not apply here because petitioners brought this case under the APA: “when the APA says ‘shall set aside’ with due account for the rule of prejudicial error, that sweeps aside these equitable doctrines and tells this Court that it shall set aside.” Responding to follow-up questions, Thompson also states that petitioners do not believe Seila Law created a “sliding scale” based on the significance of the executive power, nor would this case require a redo of the framework in Seila Law as it applies to multi-member agencies."
If that document isn't a smoking gun, I don't know what is? Where the hell is Fox business news, the wsj, baarons, et. al? We are always portrayed as the evil hedge fund guys, what about all the hard working Americans and retirees who have been fleeched by their very own federal government?
But here, the taxpayers WIN by returning the stolen capital into a 1st Loss Private Capital position as a buffer between them and the $6.7T in MBS! What say you?
Spot on Guido! For BO, who would object to swiping money from the "Evil mortgage bankers" connected with the Great Financial Crisis and using the funds for Governmental funding? But, as one of the wise Judges in the 5th Circuit EnBanc Panel noted in the majority opinion, "you can't ignore the Constitution during times of Financial stress."
I'm sure that many have over the 12.5 year "conservatorship", I think the Freddie Mac CFO committed suicide.
https://www.reuters.com/article/us-freddiemac-kellermann/freddie-mac-cfo-in-apparent-suicide-police-source-idUSTRE53L2IB20090422
His Judgment Cometh and that Right Soon!
I think Tim Howards Amicus Brief points this out with excellent clarity! If you haven't read it yet, I can send you the link!
Don't you think that given the governments horrific treatment of two private corporations, that a day of reckoning will come and perhaps sooner than later? Or do you think that because it is the federal government nothing will happen?
Once a Federal Agency is created, GOOD LUCK TRYING TO LIMIT ITS GROWTH! MC just increased the full time equivalent head count 18% Year over Year! But don't worry, the government isn't paying for it, YOU ARE!
What are the reasons against using a bulldozer versus a scalpel in Collins?
Given the abusive and coercive nature of the governmental power used here, would a bulldozer be appropriate? The UST can always provide a line of credit post Collins with a commitment fee, right?
Wasn't that all that was necessary in 2008, but the UST was hell bent on Nationalization, or am I missing something here?
I think Housing HAS Recovered, SO WHY DO WE NEED THE HOUSING ECONOMIC RECOVERY ACT (HERA)?
What seems so obvious after years of prying the appropriate "smoking gun" documents out of the clutches of an obstructionist Uncle Sugar (he had hundreds of Billions of reasons to do so!), including perjury by a top ranking FHFA official (Mario, now retired), I think has seen the light of day convincingly with the current panel of Justices ruling on this (and no more appeals on the issues presented in Collins from SCOTUS). I am looking forward to read what they think.
The parade of governmental officials involved in the largest nationalization on Earth has always baffled me, and I understand your skepticism, however, despite the wheels of justice grinding slowly, more times than not, they get it right in the end!
For the Judicial Branch of our Democracy to give a green light to the Executive and Legislative Branches that the type of governmental power used here to implement a defacto nationalization of two of the biggest private corporations on the face of the planet would be a sad day indeed and won't stop with the twins!
Perhaps we are moving to a more Socialist Society as you have alluded to in numerous posts (It worked so well in Venezuela and elsewhere, right?), but I have always placed my bets on the Rule of Law, the power of our great American democracy, and the fundamental market principles espoused by Adam Smith in the Wealth of Nations!
We'll see what happens!
That's right DAX, when the federal government guaranteed your student loan they are entitled (according to the Government) to all your profits until the day you die, just be thankful you are not a corporation because they have no expiration dates!
Come and listen to a story 'bout a man named Fred
Poor Conservatee barely kept his family fed
Then one day a man filed a legal proceeding,
And up through the courts came a positive ruling!
(No nws you see, black gold, Texas tea)
Well the first thing you know old Fred's a millionaire
Kin folk said Fred move away from there
Said California is the place you oughta be
So they loaded up the truck and they moved to Beverly
(Hills that is, swimming pools, movie stars)
Well now it's time to say goodbye to Fred and all his kin
They would like to thank you folks for kindly dropping in
You're all invited back again to this locality
To have a heaping helping of their hospitality
(Beverly Hillbillies, that's what they call 'em now,
Nice folks Y'all come back now, ya hear?)
Great points! Looking from their calendar, they have nothing for the next two weeks! Getting closer....
https://www.scotusblog.com/case-files/terms/ot2020/
https://www.supremecourt.gov/
Of course, so far in the current October 2020 term, there are approximately 15 cases left that have had oral arguments but no decision, I suspect the decision will be later not sooner, but I have no idea, you have no idea! The ONE thing we do agree on is that the governments behavior has been horrendous here! The SCOTUS has the power to end the log jam of federal cases in the court system, put the brakes on the Nationalization of two private corporations, and possibly send the Legislative and Executive branches a message not to do this again!
https://www.scotusblog.com/case-files/terms/ot2020/
Go ahead, short it!
Rruttt, RRoooohh, guess whose going to issue an opinion on Monday?
https://www.supremecourt.gov/
I thought I saw Mark polishing up his resume!
I always thought it bizarre that the government here can deplete its wards of their capital via profit sweeps in cash or in kind (Liquidation Preference) under the guise of a conservator and then only after the courts force them to stop their profit sweeps, turn around and profit more by exercising a Warrant for 80% of the stock of the companies they had been pilfering. Seems like some creative lawyering could challenge the exercise of the 80% Warrants past their September 08, 2028 expiration date. But this whole saga has been bizarre, hasn't it?
Nice find Forrest, I counted at least 15 cases whose oral arguments were prior to Collins, thanks! Could be any Thursday between now and July, but I suspect that Seila Law brought up some of the issues in Collins so it may be sooner than later.
No question that the government has had bad motives since old Hanky made the board of directors, "an offer they can't refuse"! At 12.5 years (03/08/21), this is the longest "Conservatorship", I have ever seen and what is also remarkable is that they have been profitable for close to the last decade! One positive for the shareholders is the fact that the people who stole the money are also the people that print the money and therefore a judgment issued by a federal court judge should be collectable!
The opening statement of Hashim on behalf of the defendant, 1st paragraph, saying that the fixed amount owed by the gses was simply a renegotiation of a fixed obligation to a variable net worth sweep:
"In the Third Amendment, FHFA, acting
as conservator of Fannie and Freddie,
renegotiated the enterprises' financial
obligations to Treasury by replacing the
enterprises' multibillion-dollar dividend and
fee obligations with a variable dividend tied to
their net worth. The conservator eliminated any
risk that the cycle could continue where the
enterprises' obligations to Treasury would
themselves cause draws from Treasury's capital
commitment."
Of course then Hashim adds in further bullshit about the bogus "death spiral".
We all know the CONSERVATOR shall under HERA preserve and conserve its wards assets, but according to Hashim (3rd paragraph of his opening argument) it's only a may:
"The
conservator acted well within its authority in
deciding that the renegotiation of the
enterprises' financial obligations may have been
appropriate to preserve and conserve Treasury's
capital commitment. The shareholders cannot
second-guess the wisdom or motives behind that
business judgment."
Hashim just kept piling it higher and deeper, but at this stage of the litigation, it is uncomfortably obvious to the defendant that they have finally, despite all their unlimited resources and power been cornered.
I am looking forward to this ruling by the SCOTUS. This is my 15th post of the day.
If David Stevens is pissed it MUST be good for the gses:
https://www.housingwire.com/articles/cfpb-delay-of-qm-rule-implementation-is-a-terrible-move/
"The final rule levels the playing field for non agency product like private label securitization."
"This also only extends the dependency on government-supported loans. Several in the non-agency/PLS space who were gearing up to develop QM products under the new rule are now on hold. So now, the infamous “patch” lives on, but the GSEs may not buy patch loans after July 1. In fact the preferred stock purchase agreement expressly leaves out the requirement that the GSEs’ buy loans that meet the QM/ATR standards."
"There are always positive and negative outcomes with any regime change, but to undermine a multi-year, excruciating process that got us to a final QM rule, and bring in a new day where consumers and lenders would no longer be beholden to Fannie Mae and Freddie Mac, or their regulator, to determine what is or is not QM is unacceptable.
I served in a Democratic administration and sat at the helm of the MBA when we got through the first QM rule, which resulted in the patch. And in the years since, I, and many others, have advocated that the QM rule should stand on its own and not be dependent on the patch.
We almost got there, but what this new regime at the CFPB is doing is to thrust uncertainty and disruption into housing finance completely unnecessarily. In addition, they are literally forcing the reliance on the GSEs and, for now, shutting off the opportunity for new players to emerge in a larger way. This is bad form, bad regulatory behavior, and bad news for all in housing and housing finance."
The nws, was agreed upon by the Acting Director, Edward DeMarco (what a clueless fhfa director that was) with subsequent unconstitutionally insulated directors approving each and every quarterly sweep, so the Plaintiffs are arguing that the nws should be invalidated because the actions of the nws were taken by an unconstitutionally insulated Acting and Senate confirmed director.
As far as Hashim's, "negotiating a fixed dividend payment to a variable one", nor the "may" versus "shall" duty to conserve and preserve arguments, the Justices didn't seem to be buying it (nor dI'd the 5th Circuit Enbanc court). In retrospect and through documents obtained via discovery, it seems crystal clear WHY the OBummer administration did what it did.
But you ARE right in the fact that if the SCOTUS WANTS to deny the Plaintiffs Collins, et. al., relief they could easily do so, but after listening to oral arguments, given Seila Laws retrospective relief remedy, and just that it would be horrific to all Americans if the SCOTUS rubber stamps Nationalization as a legal and legitimate use of Federal government power, I am more optimistic than pessimistic! But I have been wrong before and I don't think anyone knows for sure, but I like our prospects!
FHFA Extends COVID-19 Multifamily Forbearance through June 30, 2021
Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will continue to offer COVID-19 forbearance to qualifying multifamily property owners through June 30, 2021, subject to the continued tenant protections FHFA has imposed during the pandemic. The programs were set to expire March 31, 2021.
“COVID-19 continues to financially impact Americans across the country, thereby hindering many tenants' ability to pay their rent. To help tenants in financial distress and property owners, FHFA is extending the multifamily COVID-19 forbearance and tenant protections through the end of June 2021," said Director Mark Calabria.
Property owners with Enterprise-backed multifamily mortgages can enter a new or, if qualified, modified forbearance if they experience a financial hardship due to the COVID-19 emergency. Property owners who enter into a new or modified forbearance agreement must:
Inform tenants in writing about tenant protections available during the property owner's forbearance and repayment periods; and
Agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance.
Additional tenant protections apply during the repayment periods. These protections include:
Giving tenants at least a 30-day notice to vacate;
Not charging tenants late fees or penalties for nonpayment of rent; and
Allowing tenant flexibility in the repayment of back-rent over time, and not necessarily in a lump sum.
In addition to requiring written tenant notification, the Enterprises have posted the tenant protections to their respective online multifamily property lookup tool websites. The property lookup tools make it easier for tenants to find out if the multifamily property in which they reside has an Enterprise-backed mortgage.
These actions are just the latest steps FHFA has taken to benefit renters, property owners and the mortgage market during the pandemic. FHFA will continue to monitor the data and the coronavirus' impact on tenants, borrowers, and the mortgage market and update policies as needed. FHFA may extend or sunset its policies based on updated data and health risks. Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines.
How does one unscramble the egg and put the parties in the same position they were in prior to the unconstitionally insulated FHFA Director? Hmmmm....
Wow, 18% increase YOY in the headcount at FHFA, at least the twins are picking up the tab!
I hear you, very difficult to read the tea leaves from oral arguments, though I am impressed that the SCOTUS figured out what this is, a Nationalization of two private corporations! Sure the SCOTUS could give us a government friendly ruling, but wouldn't they be endorsing the idea that the Government NATIONALIZING private corporations is acceptable and if so wouldn't that have hugely negative consequences for Uncle Sug during the next inevitable Financial Crisis as private corporations refuse "temporary loans" knowing Uncle Sugar could do EXACTLY what they did here?
Been accumulating since I worked there in 1988...Have you EVER met an American that says, "I have too much wealth"? Although the Death tax is a bitch (starts around 45%)!
When Uncle Sugar wants to steal your money, you better get 1st string attorneys to play the legal game! Did the guy in the van decide that attending Harvard Law School just really wasn't worth his time? I'll pay for the hot dog...
I think the gses are in a very sweet spot, their book of business is as solid as it has been in decades, they have great market share, the pls market has been neutered (so no race to the bottom), the need for private capital in a 1st Loss Position was highlighted last March 2020, they are retaining earnings, the governments unclean hands have been exposed, an imminent USSCT ruling that could permanently return $30B of capital and end the LP, all previous conservatorships have been temporary, the refi fee, want more...
I guess the downside is we retain earnings at $1B/month in the meanwhile, relax....
This would be a great time for you to FINALLY familiarize yourself with the Collins case, you can BEGIN your research and due diligence here (warning there are NO PICTURES on the transcripts!)
Hint: Pay attention to the guy with the name, David Thompson.
https://www.supremecourt.gov/oral_arguments/argument_transcript/2020
"But one nice thing about opinions on Thursday is that the Court usually announces (in the sense that it says it may announce opinions) opinion days on Friday. So we should know by tomorrow afternoon whether we will have opinion days next week."
Per Amy Howe, SCOTUSBLOG.