Replies to post #750943 on Fannie Mae-No Politics (FNMA)

[FOFreddie]

Wow! Really interesting Robert - not to mention that the GSE equity has a lot of interest rate risk - smartest thing for all would be to exit conservatorship and have the UST monetize its rightful share of GSE equity under the warrants.

[navycmdr]

the risks that have been building up in the banking system ,

make action on getting Fannie and Freddie out of conservatorship more likely during the remaining months of the president’s term,

by raising the profile of the companies (and the roles they could be playing in mortgage finance),

undermining the credibility of the Financial Establishment and the banks (who’ve been telling fictitious, and we now know dangerous, stories about Fannie and Freddie since the 2008 crisis),

[Wise Man]

The conman T.Howard expelled from FNMA for stealing from the shareholders ($12 million in ill-gotten money earned with accounting fraud to meet the EPS target bonus, according to the SEC and OFHEO. Money he was later allowed to keep, as upfront payment for his job today writing in a blog to harass the common shareholders)
He doesn't understand that the Basel framework for Capital standards in FnF, is related to the 2011 UST Report to Congress, required by Dodd-Frank Law as "recommendations on ending the conservatorships" (deadline January 31, 2011), outlining a Privatized System for the Housing Finance System, under any of the 3 options that the UST came up with.
FnF have been capitalized in-house, during the last 14.5 years, through a Separate Account plan according to the Law ("FHFA's best interests")
That's what the suspension of the dividend payments is for, even in China.
In order to have a sense about how corrupt Howard is, he went to the Supreme Court as "amicus", to write a dozen times that the SPS are "non-repayable securities", when the law states that the capital distributions in FnF are only allowed to reduce the SPS. In 2011, the FHFA added more exceptions, "a capital distribution for their recapitalization" (evidence of a separate account)
The only people that have been

telling fictitious, and we now know dangerous, stories about Fannie and Freddie since the 2008 crisis

, are the corrupt litigants, like the plaintiff Mr. Angel who writes here with more than 10 different ID's, or his boss, Berkowitz (member of his legal team), and their accessories on the internet message boards like Bradford, Pagliara, ACG Analytics, etc, all day with the Government theft story, like Howard stating in that piece that FnF would need another 20 years of retained earnings:

accumulate that amount of capital through retained earnings, which likely will take another 20 years.

Under the Separate Account plan and as of end of 2022, Fannie Mae had $163B of Total Capital, which is a $58B Capital Surplus (55%) over $105B Risk-Based Capital requirement.
Freddie Mac's Total Capital, $158B. It's an $86B Capital Surplus (119%) over $72B Risk-Based Capital requirement.

(*) I have included the Allowance for Loan Losses as Tier 2 Capital, because it seems that the figures of Total Capital posted by FnF in their Earnings reports, do it as well.

[Donotunderstand]

F and F can win or lose from the press around the poor risk management by many banks - (who did not need as much capital as originally in Dodd)

The focus on F and F profit and BEING THERE -- a win

The focus on F and F capital needs as Calabria set them - hhhmm - a loss - as F and F by that standard (v stress tests) is not up to 100%

[stockanalyze]

tim howard has always been wrong. look it up. zero credibility

[FOFreddie]

Hi Patswil

Check out this post from Robert regarding TH comments.