Friday, March 22, 2013 3:44:51 AM
First, I am a commercial loan officer here in California. Most of the SFR (Single Family Residence) loans we originate (sell to FNMA or FMCC) are packaged and sold to the 2ndary market(FNMA & FMCC). I have absolutely no doubt in the ability for FNMA and FMCC to make a profit in their business. We must assure that these loans are able to be paid as they are originated by FNMA and FMCC regulations.
Now secondly, we also do large FNMA large multifamily loans. Which are sold directly to FNMA and then packaged in groups and sold to investors in the secondary market. Trust me, these clients are able to pay what they agree to when we issue the loans.
Now that being said, I know, for a 100% fact, that FNMA and FMCC are making a profit. The couple of questions that follow are:
1) How will this common stock be affected after the exact gains are shown. (after paying back government interests)
2) How will investors react to news.
3) How can we all make a profit from what is to come?
I know personally, that due to work pressures and not being an experienced trader; that I was unable to sell on time on the downward trend on 3/21/13 due to etrade issue to sell on limit/market orders when I asked it to. But then making back what I lost on the upward trend to EOD. That in reality, we have no idea what this common stock holds in the future.
The reality is, we are waiting for the actual 10-Q is released to know where we stand.
I personally am holding some 0.85 FNMA common stock, and I would like to see it increase while I am actively selling loans to FNMA. I had a hard day with etrade while trying to sell my holdings in FNMA on 3/21/13 but I know it was because of volume of trades.
I hope all read this post and realize that FNMA is making BIG money; the only question is, is the common stock going to see the returns.
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