Fannie Mae-No Politics (FNMA)

[MonestHind]

***FULL DUE DILIGENCE REPORT:"FUTURE IS GRIM"***
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FNMA MARKETWIDE SYNOPSIS for 07/29/2013:

More bad news out. FNMA still trending-down, callous to everything but negative news. Ironclad resistance levels halt any positive price action. Market wide, confidence appears nonexistent as political power players plot the methodical dismemberment of the GSEs. Analysts warn of the high probability that common shares will soon be worthless. If there was ever a time to consider these stocks a viable investment, that time has now passed. The party is over.

re: Obama: "Turn the page..."

The President has made it VERY clear, since 2011, that his intent was to DISSOLVE the companies. If I remember correctly there is a White House report from Feb. 2011 that makes it very obvious that the underlying goal is to DISSOLVE the companies. DISSOLVE only means one thing. Not "tweak," not "release," not "restructure," not "rehabiliate" but DISSOLVE.

There is no reason to think that "turn the page" is anything but a reaffirmation that he still has that goal in mind. To think otherwise is completely illogical and there is ZERO evidence to support that point of view. Z E R O.

Also - Melvin Watt HIMSELF has outright endorsed recent efforts to SHUT THE COMPANIES DOWN. OBAMA IS WATT'S BIGGEST ADVOCATE..... Put the pieces together!

Here are a thousand sources verifying exactly what I just said...

https://www.google.com/#output=search&sclient=psy-ab&q=2011+obama+dissolve+fannie&oq=2011+obama+dissolve+fannie&gs_l=hp.12...2204.2204.0.4523.1.1.0.0.0.0.85.85.1.1.0....0.0..1c.1.20.psy-ab.5Ok1h6zvlsc&pbx=1&bav=on.2,or.r_cp.r_qf.&bvm=bv.49784469%2Cd.dmg%2Cpv.xjs.s.en_US.MpiVkF51mpA.O&fp=30ae1b1e5770a225&biw=1366&bih=643

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**MUST*READ*NEWS** OBAMA INDICATES HIS INTENT TO DISMANTLE F&F (see headlines/links below)


He has said numerous times that his goal is to dismantle Fannie and Freddie. No one following this story thinks F&F will remain when all is said and done EXCEPT for those who own high priced shares. Don't be fooled friend. The only reason why pps is holding up marginally is because of the millions of shares mistakenly purchased by retail during the hedge fund promo and dump at $3+.

*****There is absolutely no reason to think this is going to pan out for common shareholders.*****

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***Bill to end Freddie Mac Clears*** (see below for link)

Where are the sources suggesting that this is a good investment?

THEY

DO

NOT

EXIST.

How to be an intelligent investor:

Step 1: Do not invest in companies that the Federal Government and the taxpaying population want and plan to SHUT DOWN.

There is NOTHING here for common shareholders. Flip the swings all you want (I do), but remember, the big picture indicates ALL SHARES ARE IN ESSENCE WORTHLESS.

I WOULD NEVER BE CAUGHT HOLDING SHARES OF FANNIE OR FREDDIE OVER NIGHT... BE SMART. DON'T FALL VICTIM TO THE HYPE!

http://www.bizjournals.com/jacksonville/news/news-wire/2013/07/24/bill-to-end-fannie-mae-freddie-mac.html


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********************LATEST NEWS**********************

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***"House bill ending Fannie and Freddie Shows Promise"***

http://www.washingtonpost.com/opinions/a-promising-congressional-debate-on-ending-fannie-and-freddie/2013/07/25/307cc99c-f482-11e2-aa2e-4088616498b4_story.html


OBAMA SPELLS OUT THE BEGINNING OF THE END FOR FANNIE, FREDDIE

http://blogs.marketwatch.com/capitolreport/2013/07/24/obama-says-its-time-to-turn-the-page-on-fannie-and-freddie/?mod=MW_latest_news

GOP BILL DISSOLVING FANNIE AND FREDDIE BACKED BY HOUSE PANEL

http://www.newsmax.com/Newsfront/fannie-freddie-house-gop/2013/07/24/id/516853

FANNIE AND FREDDIE PROFITS NOT GOING TO INVESTORS

http://seekingalpha.com/article/1568702-fannie-and-freddie-profits-not-going-to-investors?source=google_news

NC CONGRESS MEMBERS GETTING BEHIND PROPOSALS TO DISMANTLE FANNIE, FREDDIE

http://wunc.org/post/nc-congress-members-consider-bills-dismantle-fannie-freddie

HOUSE FINANCIAL SERVICES COMMITTEE PASSES BILL LIQUIDATING FANNIE AND FREDDIE http://www.huffingtonpost.com/2013/07/24/house-fannie-freddie_n_3645608.html





This scares the crap out of me:

http://www.bloomberg.com/video/hensarling-on-plan-to-wind-down-gses-capitol-gains-z~zK6HG5QaqjafBXiYRQPw.html?cmpid=yhoo

Why is there no talk of positive outcomes for common shareholders? BECAUSE IT’S NOT GOING TO WORK OUT THE WAY COMMONS WANT.



Chairman Hensarling Opening Statement at PATH Act Hearing
July 19, 2013by RealEstateRama

WASHINGTON, D.C. – July 19, 2013 – (RealEstateRama) — Financial Services Committee Chairman Jeb Hensarling (R-TX) delivered the following opening statement at today’s full committee hearing on the Protecting American Taxpayers and Homeowners Act:
“Today, the Financial Services Committee meets in its 12th hearing over the last six months on the need to create a sustainable housing finance system. By the end of the hearing, our committee will have heard from more than 50 witnesses on this subject since January.

“Americans clearly deserve a better housing system. One that protects homeowners and taxpayers, so that every American who works hard and plays by the rules can have opportunities and choices to buy homes they can actually afford to keep.

BB“One that protects hardworking taxpayers, so they never again have to bail out corrupt government sponsored enterprises like Fannie Mae and Freddie Mac, whose top managers engaged in extensive accounting fraud to trigger huge executive bonuses for themselves.BB

“America needs a housing policy that is sustainable over time, not one that causes endless boom-bust cycles in real estate that harms our economy.

“Regrettably, such a common sense and responsible system is not in place America in today.

“Today, taxpayers have been forced to pay nearly $200 billion for the bailout of Fannie Mae and Freddie Mac.

“Today, taxpayers remain on the hook for more than $5 trillion in mortgage guarantees, roughly one-third the size of our economy.

“Today, the federal government has a virtual monopoly on the housing finance system. That is unwise, unfair, and unsustainable.

“Today, Washington elites decide who can qualify for a mortgage. That puts homeownership out of reach for millions of credit-worthy American families. That is not fair.

“Americans truly deserve better.

“The proposal we’ll discuss today will give Americans the better, fairer, and sustainable housing finance system they deserve. It’s called the PATH Act because it Protects American Taxpayers and Homeowners.

BB“The PATH Act ends the bailout of Fannie Mae and Freddie Mac by gradually winding them down over a five-year transition period. On their best day they delivered 7 to 25 basis points interest rate advantage to homebuyers, yet only delivered mediocre rates of homeownership — contrasted with almost $200 billion of bailout; wrecked lives of those who lost their homes; artificially driving up cost of principal; and helping bring the economy to its knees. Fannie and Freddie did little to help the homebuyer but an awful lot to hurt the taxpayer and the economy.BB

“The PATH Act also protects taxpayers and homeowners by finally codifying what most everyone claims the FHA was designed to do; that is, an agency that was intended to help first-time homebuyers and those with low and moderate incomes. But instead, today they can insure millionaires’ mortgages for homes valued as high as $729,750. In many sections of my district, that’s a mansion. The mission creep has over-extended FHA. Today it is broke, unsustainable and projected to need its own taxpayer bailout, just like Fannie and Freddie. An unsustainable, bankrupt FHA will help no one. The PATH Act puts it on a sound footing.

“The PATH Act tears down barriers to private capital and frees homebuyers from a government-dominated system that puts, again, Washington elites in control of deciding who can and who cannot buy a home. Washington should not steer our citizens into mortgages that may not be right for them nor should Washington prevent them from taking out mortgages of their choosing. Reforms in the PATH Act increase competition, enhance transparency and give consumers more freedom to choose the mortgages that’s right for them as long as the terms are fully disclosed and understandable. Witnesses at our previous hearings have warned that regulations coming down the pike could increase mortgage interest rates 1 to 4 percentage points, lead to fewer home sales, and deter community banks from making mortgage loans. CoreLogic has warned that only half of today’s mortgages would comply with the bureaucratic Dodd-Frank rules that go into effect in just 177 days. Again, this is wrong and unfair.

“A significant number of members in this room have said they want to end Fannie and Freddie; they want a new system. But they want to do it up until it’s actually time to do it. And nearly five years after the bailout of Fannie and Freddie, I ask my friends on the other side of the aisle and in the Administration: If you don’t like our plan, where is your plan?

“Some say the plan will end the 30-year fixed mortgage. But it exists today without a government guarantee. Many of these same naysayers are the ones who said we had nothing to worry about with Fannie and Freddie — “Let’s roll the dice” — so thus their track record on predictions is not an enviable one.

“Some say this plan would end the federal guarantee for the housing finance system. Yet FHA, the Federal Home Loan Banks, the VA, and the rural housing programs are still there.

“Some say the PATH Act is ideological. But it seems to me that those who defend the status quo of a government-run monopoly complete with taxpayer bailouts, economic crises, and mediocre rates of homeownership are the ones that are being ideological.


FNMA:"Individual-investors-have-absolutely-no-business-playing-in-this-arena."

-Alex Dumortier, CFA

http://www.fool.com/investing/general/2013/07/10/fannie-mae-and-freddie-mac-let-the-pros-mix-it-up.aspx


"Freddie Mac, Fannie Mae common shares worth ZERO"

http://touch.valuewalk.com/valuewalk/#!/entry/waterstone-freddie-mac-fannie-mae-common-shares-worth-zero,51cdee5dda27f5d9d0ec752a

CNBC: "Retail traders could lose 100%."

"I don't think the retail trader knows what they're doing," said Stephen Weiss of Short Hills Capital Partners. "They are looking to buy a lotto ticket and not realizing they could lose 100 percent of their capital in these things."


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re: Earnings

Keep in mind folks, if we already know the numbers that will be posted in August, the market will have adjusted pps before earnings are even released. This means no one should be counting on a major boost to pps on release date.

It's also important to realize that the level of profits means, in essence, nothing for common shareholders at this point.

My prediction is that if there is a boost to pps in anticipation of earnings, it will be followed by a major dip upon release. If the numbers do not meet expectations, watch out; things WILL get ugly.

In addition I should mention that this level of profit will not sustain. My opinion is that the following quarter and those thereafter will see a substantial decrease. Deferred tax aside, If for any reason, it will be because interest rates will be on the up, and refis will fall substantially.

Be careful what you believe around here! _________________________________________________________________

Planet Money (NPR): Killing Freddie Mac
http://www.wwno.org/post/planet-money-killing-fannie-mae


Wall Street Journal:"...FANNIE, FREDDIE OUTLOOK NEGATIVE"

http://online.wsj.com/article/PR-CO-20130702-909097.html


WASHINGTON, D.C.--(ENEWSPF)--Support for Corker bill strengthens

--July 10, 2013. U.S. Senator Mark Kirk (R-Ill.) today announced his support for the Housing Finance Reform and Taxpayer Protection Act, S. 1217, led by U.S. Senators Bob Corker (R-Tenn.) and Mark Warner (D-Va.) and supported by a bipartisan group of eight members on the Senate Banking, Housing and Urban Affairs Committee. The bill would establish a new housing finance system—one void of the government-sponsored enterprises Fannie Mae and Freddie Mac that take all the private gain while exposing taxpayers to all the risk. Under the proposed legislation, the new housing finance system would be based on a greater reliance on private capital, while shielding taxpayers from loss, and maintaining a liquid mortgage marketplace

BusinessJournal (01/17/2013):"BIPARTISAN GROUP WANTS SLOW DEATH FOR FANNIE MAE, FREDDIE MAC"

According to Hagan, the new legislation would accomplish the following:

•Mandate 10% capital, upfront, for the system to protect taxpayers against future bailouts.

•Wind down Fannie Mae, Freddie Mac and the Federal Housing Finance Agency within five years of bill passage.

•Transfer appropriate utility duties and functions to the modernized, streamlined and accountable Federal Mortgage Insurance Corp., modeled in part after the FDIC.

•Establish a transparent and accountable market access fund that focuses on maintaining access to affordable rental housing, making grants to state housing agencies and conducting borrower counseling programs at the state and local level.

•Ensure institutions of all sizes have direct access to the secondary market so local banks and credit unions aren’t gobbled up by the mega banks when Fannie and Freddie are dissolved.


MMBA Voices Support For Corker-Warner Housing Finance Legislation

http://www.bankerandtradesman.com/news155658.html



Former FHFA director: "...stocks delisted for good reason.." "..hedge funds won't receive much sympathy from Capitol Hill..."


http://www.streetinsider.com/Analyst+Comments/Housing+Experts+Debate+GSE+Reform+Timeline+and+Junior+Securities+(FNMA)+(FMCC)/8426089.html


NATIONAL LAW REVIEW: ***"Fannie, Freddie GOING AWAY"***

http://www.natlawreview.com/article/are-fannie-mae-and-freddie-mac-going-away


NEWS: The Obama administration welcomes Corker's approach

Congress Debates Taking A Step Back From The Mortgage Market
http://www.kios.org/post/congress-debates-taking-step-back-mortgage-market


MARK WARNER,EIGHT OTHER SENATORS WANT DEATH-FOR-FREDDIE,FANNIE
http://www.bizjournals.com/washington/morning_call/2013/07/senator-wants-slow-death-for-fannie.html


NPR NEWS: Momentum in Washington to dismantle mortgage-giants

http://app1.kuhf.org/articles/npr1374141707-Congress-Takes-Renewed-Aim-At-Fannie-Mae,-Freddie-Mac.html


BAD NEWS!: "Uncertain Future For Fannie and Freddie"

http://wyomingpublicmedia.org/post/uncertain-future-fannie-and-freddie


"Lawmakers are serious about replacing Fannie, Freddie"

http://wyomingpublicmedia.org/post/uncertain-future-fannie-and-freddie

BusinessJournal: "Fannie,Freddie viewed with 'NEAR-TOXIC' negativity"

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**You're-wondering-why-PPS-is-falling-on-lawsuit-news?** Answer:

These big firms are filing suit because it has recently become obvious that the chance F&F will be released to shareholders any time soon is almost nonexistent. Information has surfaced that indicates the majority of powerplayers in the political realm do not favor the idea of ending conservatorship...and therefore it is extremely unlikely.

These big investment firms are hedging via litigation because they know the outlook is grim. It's as simple as that.

Before celebrating these lawsuits, as if the firms are going to "stick it to the man," one must consider the implications involved.

Such lawsuits take years upon years in the courts. If the firms expected there was any chance that F&F would be released soon, they would not waste the time or resources pursuing action.

There are a vast number of wise investors who are aware of this, and are reacting promptly...which inevitably weighs heavily on pps. Down we go.....?

Things around here get darker by the day. I hope investors around here are being smart about the risks involved with these stocks.

This is a terrible long term bet that just keeps getting worse. ________________________________________________________________

http://www.bizjournals.com/washington/breaking_ground/2013/07/fannie-mae-freddie-mac-viewed-with.html

***NEWS: Rep. Hensarling aims to SHUT-DOWN Freddie Mac***

By TODD J. GILLMAN
TODD J. GILLMAN The Dallas Morning News
Washington Bureau
[e-mail]
Published: 11 July 2013 08:54 PM

Updated: 11 July 2013 09:01 PM
RelatedJeb Hensarling WASHINGTON — House Republicans floated a plan Thursday to liquidate mortgage giants Fannie Mae and Freddie Mac and drastically reduce the federal role in home loans.

The plan, unveiled by House Financial Services Chairman Jeb Hensarling, R-Dallas, would end federal guarantees on home loans, even in a crisis. The near total privatization, he argued, would cut risk and create a healthier mortgage market.

“The American people want a housing policy that is focused on taxpayers, focused on homeowners — existing and would-be,” Hensarling said. “More people will have opportunities to buy homes that they can actually afford to keep.”

Democrats panned the proposal. They warned that it would threaten the housing market recovery, and make ownership costlier and harder to attain.

They also charged it would make it hard for consumers to find a 30-year fixed-rate mortgage, long a pillar of the $10 trillion U.S. housing market.

That “consigns future generations of homeowners to the types of high interest, balloon-payment mortgages that caused the financial crisis,” said Rep. Maxine Waters of California, the top Democrat on Hensarling’s committee.

At the Center for American Progress, a Democratic think tank, Julia Gordon, director of housing finance and policy, called the plan “the ultimate right-wing wish list, turning the entire mortgage market over to Wall Street lock, stock and barrel.”

Lawmakers in both parties want to abolish Fannie Mae and Freddie Mac, but there is no consensus on how to do so.

Last month, a group of four Republican senators and four Democrats proposed liquidating the companies. Unlike Hensarling’s plan, their bill would retain a key federal role in the home loan market. Fannie and Freddie would be replaced by a new government reinsurer that would cover losses in a crisis.

At the Mortgage Bankers Association, president and chief executive David Stevens has lauded the Senate approach. He was more measured on the Hensarling plan.

He called it “an important step” in the debate over the mortgage market. But he cited a need for a “limited, but explicit, government backstop to maintain stable liquidity through all market cycles.”

Fannie Mae and Freddie Mac have operated under U.S. conservatorship since 2008. They owe roughly $187 billion from a 2008 bailout.

Having returned to profitability, they have since sent the U.S. Treasury about $132 billion. Some analysts say they could repay all the bailout funds by next year.

Hensarling asserted that these dividend checks don’t amount to repayment and don’t begin to address the economic damage that Fannie and Freddie helped inflict in the last housing bust and other crises.

The companies own or back about half the home loans in the United States. They buy them from lenders, package as bonds, and guarantee against default.

Hensarling’s plan, unveiled with three of his panel’s subcommittee chairmen, would wind down the companies over five years. He plans a hearing next week and committee action by next month.“

By allowing market competition and proper capital allocation, we will ameliorate the boom-bust cycle,” Hensarling said. “We hope to take the volatility out of the market.”

The plan would replace Fannie and Freddie with a “National Mortgage Market Utility” that would absorb some of their functions. It wouldn’t buy or guarantee loans, but it would set voluntary standards for loans and privately held mortgage-backed securities.

Under the bill, borrowers whose loans would be backed by the Federal Housing Administration would have to put down at least 5 percent of the purchase price, up from 3.5 percent. Only first-time buyers and lower-income borrowers would be eligible for such loans.

The plan also would repeal elements of the 2010 Dodd-Frank law, easing capital requirements on lenders.

“We have to take a holistic approach,” Hensarling said. “The federal government has almost a virtual monopoly.”

http://www.dallasnews.com/news/politics/headlines/20130711-dallas-rep.-jeb-hensarling-aims-to-take-down-fannie-mae-freddie-mac.ece


NEWS: ***HOUSE EYES CLOSING FREDDIE MAC, FANNIE MAE***

Bad news for shareholders just keeps rolling in.


http://www.globalpost.com/dispatch/news/thomson-reuters/130711/house-republicans-eye-closing-fannie-mae-freddie-mac-five-years

Forbes: Hedge funds declare loss of hope

Hedge Fund Launches Plan B In Bid To Profit From Fannie And FreddieMove up Move down The Fannie And Freddie Penny Stock Boom Gets Crushed Nathan Vardi Forbes Staff

In recent months big and powerful hedge funds have descended on Washington, lobbying for Congress to revive Fannie Mae and Freddie Mac, the government-sponsored enterprises that have been operating out of conservatorship since the financial crisis. These hedge funds had purchased preferred shares of Fannie Mae and Freddie Mac in the hopes that their value would skyrocket under a privatization scheme of the two mortgage giants. Some of these hedge funds even bought up some of the even more speculative common shares of Fannie and Freddie, penny stocks that trade on the over the counter bulletin board.

But these hedge funds found the reception on Capitol Hill to be pretty cold. Instead, a bipartisan group of senators in late June put forward new legislation aimed at getting rid of the role Fannie Mae and Freddie Mac play in the housing market by purchasing and guaranteeing mortgages. Senators Bob Corker and Mark Warner want to replace Fannie Mae and Freddie Mac with a new Federal Mortgage Insurance Corporation, a government reinsurer of mortgage securities that would backstop private capital investment in mortgages. The legislative proposal sent both the common and preferred shares of Fannie Mae and Freddie Mac into a tailspin.

With the lobbying effort not going too well, the hedge funds trying to make big profits off of Fannie Mae and Freddie Mac are launching what amounts to Plan B: litigation. Perry Capital, a large hedge fund run by Richard Perry, a former Goldman Sachs trader, filed a 34-page complaint (which you can read below) in federal court in Washington D.C. against the federal government, claiming the government has improperly taken the massive profits Fannie Mae and Freddie Mac have recently been producing and caused tens of billions of dollars in value destruction to the holdings of private shareholders. In its fight with the federal government, Perry Capital has also retained one of the most respected advocates available, Theodore Olson, the former U.S. solicitor general.

Perry Capital’s lawsuit seeks to put an end to the government’s decision last year to take all of Fannie Mae and Freddie Mac’s profits and start a process to liquidate the companies, saying the “blatant overreach by the federal government to seize all of the companies profits at the expense of the companies and all of their private investors is unlawful and must be stopped.” Perry Capital specifically points to an amendment to the mortgage companies’ stock certificates and preferred stock purchase agreements that saw the Treasury Department purchase a new class of preferred stock, entered into in August 2012 by Treasury and the Federal Housing Finance Agency, which is the conservator of both Fannie and Freddie. The change resulted in Fannie Mae and Freddie Mac paying just about all their profits to the government as dividend payments, meaning none of those profits are flowing to private holders of the GSEs’ shares. Perry Capital claims that for various reasons neither Treasury nor FHFA had the authority to make such a change.

For Perry Capital and other hedge funds seeking riches, the litigation route will be lengthy and uncertain. For some, it might also seem disingenuous; another effort to keep Fannie Mae and Freddie Mac as vehicles that privatize gains and socializes losses. The federal government bailed out the GSEs with $187 billion of U.S. government funds during the financial crisis to keep it afloat amid a credit crunch. Perry Capital claims in its lawsuit that it purchased Fannie Mae and Freddie Mac preferred stock in 2010 “in reliance on the terms of the government preferred stock as it existed” prior to the 2012 amendment. But the Obama Administration has for years now made clear its intention of reforming and winding down Fannie Mae and Freddie Mac so some might find it hard to see how one of the nation’s biggest and most sophisticated hedge funds could claim it wasn’t put on notice with ample opportunity to unload its Fannie Mae and Freddie Mac shares in the same market in which it purchased them.

http://www.forbes.com/sites/nathanvardi/2013/07/08/hedge-fund-lauches-plan-b-in-bid-to-profit-from-fannie-and-freddie/


BE AWARE OF THIS:

"Trouble Ahead For Fannie Mae(OTCBB:FMCC) Shareholders. Despite becoming one of the most highly capitalised penny stocks on the US markets earlier this year, the Federal National Mortgage Solution (FNMA) AKA Fannie Mae has taken a hammering on government plans to privatise the institution. Understandably, shareholders, many of which were already hit hard during the 2008 bailout are waiting anxiously to see how the proposed bill will fare in the senate.

The problem for shareholders is that, ultimately, conservator-ship was the right decision for the country, it just wasn’t the right decision for investors. And this time again, it will take more than the voice of Berkowitz to sway the decision.

http://www.valuewalk.com/2013/07/fannie-mae-freddie-mac-cheated/

Credit Union Times: "Senate bill would kill the GSEs"

http://www.cutimes.com/2013/07/03/senate-bill-would-kill-the-gses


National Public Radio: "Killing Freddie Mac"

http://www.wwno.org/post/planet-money-killing-fannie-mae

"...the beneficiary should be the government, not the owners of the publicly traded shares, which by all rights should be worthless."

Source: http://articles.mcall.com/2013-06-07/opinion/mc-fannie-mae-paulson-weil-column-20130607_1_fannie-mae-fannie-and-freddie-freddie-mac


"A plan being considered in the Senate would liquidate Fannie/Freddie within five years and replace them with a government-backed reinsurance entity that would back-stop the industry but only after private investors suffer losses first."

I wouldn't touch it with a ten foot pole. One of the riskiest stocks to hold, hands down.

Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/06062013-secondary-marketing-frannie.asp

"Personally, I wouldn’t bet on the shareholders of Fannie and Freddie getting their companies back anytime this decade. Although there may be long term value, nobody should count on it for grocery money anytime soon.

Source: http://www.vaildaily.com/news/6830670-113/colorswatch-colortext-nonestrokestyle-nothingtext


Why Melvin Watt will be BAD for common shareholders:

http://nlpc.org/stories/2013/06/13/fhfa-nominee-melvin-watt-would-prolong-fannie-maefreddie-mac-bailout


Link: Housing Experts Plan the End of Fannie, Freddie

'Fannie Mae and Freddie Mac will not be part of the future housing finance system. Their investment portfolios would be wound down, their securitization activities spun out into the new platform, and their guarantee functions sold to privately funded MBS insurers. Any remaining assets would be sold. Taxpayers would be repaid (to the extent possible) for their past support of Fannie and Freddie," the authors wrote.'


“...Corker-Warner is going to be the approach that eventually becomes law” U.S. Senators Offer Bill to End Fannie Mae, Freddie Mac (4)

http://www.businessweek.com/news/2013-06-24/u-dot-s-dot-senators-to-introduce-bill-to-end-fannie-mae-freddie-mac


"Analysts Envision Fannie, Freddie's End"

"Fannie Mae and Freddie Mac would not be part of the future housing finance system. Their investment portfolios would be wound down, their securitization activities spun out into the new platform, and their guarantee functions sold to privately funded MBS insurers. Any remaining assets would be sold. Taxpayers would be repaid (to the extent possible) for their past support of Fannie and Freddie," the authors wrote.


This largely reflects the thinking in Washington, where there is little political appetite to return the agencies back to private hands, even though both are now making record profits. --
http://www.nuwireinvestor.com/articles/analysts-envision-fannie-freddies-end-60880.aspx


"High probability that this goes to zero..."

Video - Are Fannie and Freddie doomed?

http://www.dailyfinance.com/2013/06/19/how-to-value-fannie-mae-stock/


MELVIN WATT & RALPH NADER DESPISE EACHOTHER? "Watt has a real chip on his shoulder about white candidates. Back in 2004, Ralph Nader, hardly a conservative, asserted that Watt belligerently confronted him, and demanded that he drop out of the presidential race as a Green Party candidate and support Democratic nominee John Kerry. According to Nader, Rep. Watt had said, "You're just another arrogant white man - telling us what we can do - it's all about your ego - another fucking arrogant white man." Nader demanded an apology from Watt, but never got one." http://nlpc.org/stories/2013/06/13/fhfa-nominee-melvin-watt-would-prolong-fannie-maefreddie-mac-bailout

The cold hard truth with Fannie and Freddie is that you could wake up one morning, look into your portfolio, and see zeros. This stock could literally be deemed worthless OVER NIGHT. No warning, no time to sell, NOTHING.
____________________________________________________________
*****10 IMPORTANT TIPS FOR FNMA*****

1) Don't blame market makers because pps is down. It's all in your head.

2) Stop trying to convince whomever that pps is going to skyrocket on earnings...it's simply not going to work like that.

3) Stop trying to convince whomever that certain news means good things for common shares. There has been NOTHING in the news that should instill confidence.

4) Don't plan on this breaking $2 any time soon.

5) Increase the reality based dialogue and foster open discussion about the negatives in play. There are a ton of them.

6) Remember that more likely than not, this will never see $5 again.

7) Understand that the past does not dictate the future.

8) Don't forget that the general consensus in Washington is that the companies will be wiped out.

9) In the future, don't invest in companies the federal government plans on shutting down.

10) In the future, don't invest in companies the federal government plans on shutting down_______________________________________________________________
imo