Fannie Mae-No Politics (FNMA)

[navycmdr]

IMF Short Takes: Steven Cohen Likes Walter / Some SAC Background / FHA Premium Cut? Bring it On / What Does the GOP Think? / Clarification on GSE Recap

Certain mortgage stocks have fallen in price by so much that some speculators are hoping for a ?dead cat bounce.? Case in point is Point72 Asset Management, which recently disclosed a 6.2 percent stake in nonbank servicer Walter Investment, a firm whose share price is off 57 percent from its high. Point72 is run by investor Steven A. Cohen and was formerly known as SAC Capital Advisors?

In 2013, SAC pleaded guilty to insider trading charges ? not related to Walter ? and paid a record penalty of $1.8 billion?

So, is the industry happy about the FHA premium cut about to be unveiled by President Obama? Indeed. At press time, several trade groups were preparing statements. One of the first we received came from the Community Mortgage Lenders of America, which pointed out that the price break will aid, among others, first-time home buyers and minorities?

Of course, we?re waiting to see what Republicans on Capitol Hill think of the idea?

CLARIFICATION: In an IMFnews story Tuesday, David Stevens, president of the Mortgage Bankers Association, was quoted regarding the topic of Fannie Mae and Freddie Mac being allowed to rebuild capital through retained earnings. Stevens? message may have been misinterpreted by some readers. Stevens is not against a recapitalization of Fannie and Freddie per se, but believes ? as he noted in a subsequent interview ? that it?s ?illogical? (politically and legally) to think such an outcome can be achieved over the next two years. He added that he is not necessarily against a recap. ?I never stated my position on that subject at all, and never said that to you,"he said.