Replies to post #447270 on Fannie Mae-No Politics (FNMA)

[navycmdr]

DOW +215 - Preferreds +.24, +25,+.29 ... Twins in da woodshed -.01,-.03

[Spicoli]

I don’t remember seeing in any public articles that FHFAs plan included receivership. Has anyone posted the actual plan? There is a link on Bloomberg but you must have a subscription.

[stoxjock]

"Fannie & Freddie's SUCCESSORS..." That's a Scary sentence indeed... Looks like its the BIG Banks Vs the Small Community Lender Banks... And we know from History that the Big Banks always Win... which would not be good for us Shareholders, especially Commons... that's why IMHO, I'll wait this out till a clear resolution occurs regarding Fannie & Freddie.

[pjcolorado]

WHERE did the author get his info that the FHFA plan was to put the companies into receivership? I saw nothing like that in what was released. I've not heard anything from the FHFA on what their plan does for CURRENT shareholders. Sounds like someone is taking liberties with FHFA's plan at this point...

[Donotunderstand]

“The FHFA’s plan would reconstitute Fannie and Freddie from wards of the state to private shareholder-owned corporations,” the American Banker reported. The GSEs would be put into receivership and their charters would be repealed.

“However, sources say the Senate proposal provides that the remnants of Fannie and Freddie could emerge with similar characteristics as the two current companies,” the article continued. “They would be remade into private guarantors and allowed to build capital from investors. It also envisions that Fannie and Freddie’s successors and other competing guarantors would issue a single mortgage-backed security using the Common Securitization Platform that Fannie and Freddie are currently building under the oversight of the FHFA.”

As I read all of the above - the only thing that is certain is all options from death to glory are on the table for CURRENT GSE holders -- but death is there for sure (especially as the MBA pushes and buys off politicians)