Fannie Mae-No Politics (FNMA)

[cclose1]

Staying long....

"Finally, my third priority is to prepare Freddie Mac for a potential end to conservatorship. Nobody knows exactly what the future holds, but the conversation in Washington and the expected release of the Administration’s Housing Finance Reform Plan demand that we be ready to follow the path set by that plan and the milestones established by the FHFA director. And make no mistake, we will be ready."

http://www.freddiemac.com/perspectives/david_brickman/20190731_financial_results_2q2019.page?

- budget debt ceiling deal must go through. Read the text carefully and look at how CBO/White house account for GSE Dividends this year and next. CBO budget is baseline, OMB will make calculations to reduce direct spending. CBO accounts for Fannie and Freddie as an expense, after FY19. FY19 dividends are already spent.
https://www.cbo.gov/publication/54475
https://www.congress.gov/bill/116th-congress/house-bill/3877/text
https://www.cbo.gov/system/files/2019-05/55151-budget_update_0.pdf

-"g. Cash payments from Fannie Mae and Freddie Mac to the Treasury are recorded as offsetting receipts in 2018 and 2019. Beginning in 2020, CBO’s estimates reflect the net lifetime costs—that is, the subsidy costs adjusted for market risk—of the guarantees that those entities will issue and of the
loans that they will hold. CBO counts those costs as federal outlays in the year of issuance." - translation, they are accounting for it as an expense.


- I am wondering if 5th Cir is waiting for the SCOTUS to grant cert, either way it is worth following: https://www.scotusblog.com/case-files/cases/seila-law-llc-v-consumer-financial-protection-bureau/

- seila case may have caused the flip flop in collins. good article: https://www.ballardspahr.com/alertspublications/legalalerts/2019-07-25-mortgage-banking-update

- "The Temporary GSE QM loan category—also known as the GSE Patch—is scheduled to expire when the GSEs exit conservatorship or on January 10, 2021, whichever comes first." I feel like a lot of news articles left this part out.

https://www.federalregister.gov/documents/2019/07/31/2019-16298/qualified-mortgage-definition-under-the-truth-in-lending-act-regulation-z#footnote-89-p37162

The bread crumbs are there, the conditions are being set.