Fannie Mae (QB) (FNMA) News

The same folks dump, the same buy. When they dump, we don't sell,we buy, the price will go up.

Is that Hillary posing as Lady Liberty on that $1,000,000 bill?

I think it's gonna hang where it is, plus or minus a few pennies. Still all complete speculation and too much uncertainty as a result. Trying to keep the lid on what's been done here is either going to be successful (as it's been for the past 16 years) or become a Rosetta stone moment. Knowing the history...option A seems more likely, but Option B would be fun for sure.

Yup. And it backfired on them when it drove their profitability even higher and it allowed the government to sue lenders generating the loans and collect those checks too. They literally double dipped on the entire situation. And screwed FnF shareholders twice by sweeping profits when they realized all those mortgages were still going to be profitable.

Sorry u and Tim are both wrong. Don’t care what either of u say, it’s a fact and will be a factor if needed someday.

Immediately upon being forced into conservatorship they are forced to buy $billions more of toxic mortgages.

This is false. Tim Howard searched for evidence for this claim and couldn't find any.

Then there’s the fact that after five and a half years of performance results on Fannie’s 2009 book of business, its cumulative default rate is similar to the high-quality 2002 and 2003 books, and a fraction of the default rates of the 2007 and 2008 books. There is absolutely no evidence that Fannie Mae purchased toxic loans post-conservatorship, yet continued references to this myth, including by SCS, perpetuate it, which is not helpful.

The source of the rumor that FHFA and Treasury forced FnF to buy toxic mortgages after conservatorship started was from a Bloomberg article that itself had no evidence to back it up.

I truly can't understand why anyone would continue to push that false narrative.

All illegal.

None of this matters until and unless a court rules in favor of the plaintiffs on lawsuits that allege such illegality.

File your own lawsuit, shut up, or be exposed as an all-talk do-nothing hypocrite.

I could be wrong, but believe that most of the folks on this board, including me, were not the same folks who were screwed over by the Government in 2008 or even 2012, but came by way of these stocks much later in the game because it was a special situation and we saw the opportunity to make better than average returns. It was a great risk/reward play when you could buy 100,000 common shares for a quarter each or preferred shares for a nickel on the dollar (not that I got in that cheap for either). But the warrants and the seniors existed at the time many of us bought and we knew what we were buying into. Yet many of these late comers are same people who complain that the Government screwed us. They didn't screw me because I bought in the post-screw period as I think most of us did. People got out their calculators and started multiplying their number of shares by $5 and said "why not $50?" then "why not $150? $350"?. Thinking closer to winning the lottery than investing in 2 solid companies. (I still can't wrap my head around MBS backed by 750 FICOs and 50% LTVs - Damn!! ) And then developing a sense of entitlement - as in hey - the Government owes me at least $xx per share because they screwed the company 16 years ago.

That paragraph is a work of art. Bravo.

If any post on this board needs to be stickied, it's this one.

What about that poor shareholder who doesn't have the funds to file a lawsuit, but certainly knows his money vanished by theft? Or the widow woman suffering though the taking of private property who knows it was stolen? Or the police officer whose life savings invested in the Austin Retirement Police Officers fund who is unable to retire because his money was robbed from him? What about that?

They could band together and file a class action lawsuit on contingency if they really wanted. Crying poor mouth on their behalf doesn't make you any less of a hypocrite anyway.

In addition, if any of these shareholders have sold their shares then any resolution that causes current shareholders to benefit doesn't help them at all.

If you were truly concerned about justice then you would be advocating for a resolution that gives money only to those who held shares when the conservatorships started and when the NWS was signed. Anyone who bought shares after the NWS has no right to complain about how the NWS screwed them, and the same applies to the original conservatorships.

Are these people hypocrites because their unable to file a lawsuit?

No, because they aren't constantly spouting off legal theories and whining about supposedly illegal government activities. Of the "file your own lawsuit, shut up, or be shown to be a hypocrite" options they have chosen #2, whereas you keep choosing #3.

The hypocrites are those who do such continual whining but refuse to actually do anything about it. Like you.

Do you know if the warrants have an anti-dilution protection clause? I dont understand why the UST wouldnt just wait until all the necessary capital is raised post exit and then just exercise their warrants for 80% of the outstanding float after the required new shares are issued?

The warrants are "magic", in that they give Treasury a 79.9% stake in the common once exercised no matter what the prior share count had been.

As such, there is no way that outside investors will contribute capital or the juniors will agree to an exchange for commons if the warrants still exist and haven't been exercised. A similar argument applies to the senior prefs.

1. turn on the JPS divs - 2. start paying divs on common - 3. issue new stock to reach cap requirements - 4. offer JPS opportunity to convert rather than raising new cap for the $ 30bn JPS - 5. exercise the warrants - 6. start selling UST stake over time as GSEs become part of stock indices - 7. change the charter to provide for the merger of FNMA and FMCC - 8. Move them to Cincinatti to save on overhead and costs and get away from the DC swamp.

I think it will look like this:

1) Convert or write down the senior pref liquidation preference
2) Exercise the warrants
3) Offer junior pref conversion
4) Raise capital (if needed)
5) Release FnF from conservatorship
6) Turn on dividends for both prefs and commons
7) Relist the shares
8) Treasury sells its common stake over time a la AIG

It is quite possible that many, if not all, of steps 1-7 happen in a very short time period. It would require an agreement between FHFA, Treasury, outside investors, and junior pref shareholders.

I am expecting a EOD spike.

We all should know or figure by now that Whalen's outing earlier this week was meant to be a shot across the bow aimed directly at shareholders price hopes ... I figured they would at least wait until next week sometime to bring out another weapon ... I didn't even have Hank Paulson on my radar thinking he would want to lay low for a while or stay out altogether given his part in the original takedown.

I see Red Cloud posted something from Hank making a statement on the GSEs, which prompted this post, but I could NOT bear to watch ... so I have no idea what it's all about, but he could very well be the biggest weapon they could bring out for the final takedown attempt (which he could be used all the way through Trump's attempt to end this) ... one would think he'll want to bury as much of the past and legitimize his moves as much as possible. However, on the other hand, although I would never believe it till I see it, maybe not even then, he could come out the other direction and call an end to the 2008 crisis, exonerate the twins, and ride off into that billionaire's sunset ... everything up to this point has been so ugly and deceptive I can hardly fathom a story book ending coming from Hank Goldman Paulson.

If the Hank video is old it may help reinforce our arguments not, but Trump, Ackman, Elon, Vivek - should all unite against the Bush past and warn Hank to steer clear of this admins effort or face investigation from his part in the takedown ...

Here's Hank Paulson making a statement about Fannie and Freddie buying MBS to support the housing market



So: Fannie and Freddie were forced into conservatorship because they held too many toxic mortgages. Immediately upon being forced into conservatorship they are forced to buy $billions more of toxic mortgages.

500K volume spike.

Similar articles were published in the States by Bloomberg News and MarketWatch. I saved the latter.

https://www.cnbc.com/watchlist/#!/watchlist/5725383

For Newbies, the true reason for the conservatorship: TO BUY BAD MORTGAGES HELD BY TBTF BANKS.

DOGE. Take care of this unfreedom of information toilet.

Fannie / Freddie express Train is Headed back to Yuma ! - ......




but resident Walter got lumpy sanitorium oatmeal this mornin'

Thanks - she is an expert and also teaches at the same school DJT and his children went to. Here is her explaining the GSEs in 2015



She will probably weigh in again and some one should bring up the fairness and equity part of how shareholders were screwed by Regulators coercing the GSEs to buy subprime and how the UST added to instability by the leak of the Barrons For Your Eyes Only Memo in March of 2008 which led to the collapse of Bear Stearns.

Here is the NEC Memo to the UST in March 2008 that was leaked to Barrons the week before Bear Stearns collapsed:

https://fcic-static.law.stanford.edu/cdn_media/fcic-docs/2008-03-08_Treasury_Email_from_Hason_Thomas_to_Robert_Steel_Re_Source_document_for_Barrons_article_on_FNM.pdf

Two months later the GSEs raised $ 5 bn plus of JPS at $ 25 per share and no one knew the NEC and UST thought shareholders " would be wiped".

Hysterical. Can't be allowed to post a Trump dance video on this lame donkey site. YMCA..,

Great find..

The regulators were pushing Fannie and Freddie to buy Alt-A & sub-prime loans.
Dr. Wachter should have been deposed.

I have observed the use of Boom previously. Soon enough pps may claw back to Wednesday's pps prior to the Yuge drop during the big dawgs dumping millions of shares

I think the spring is broken.

Buy it navedog. You can do this

Chart looks like a spring about to explode.

Hi Red Cloud. Dr. Susan Wachter of Wharton confirmed this in her FCIC Interview. Check out the from the 58 minute mark. The question from the FCIC interviewers was which regulators were pushing the GSEs to buy subprime loans - Dr. Wachter said she rather not say - then the interviewers said - " What if we turn off the tape?" She said sure and the interviewers turned off the tape.

https://elischolar.library.yale.edu/ypfs-audio/304/

now 91,614 shares on Freddie BID @ $2.66 ...

That’s a good one,

“…. far as you can get without a spaceship.”

We cannot seem to breakthrough $2.69 for some strange reason.

Calling all whales.

Point? Much change since then Amigo

Lol, no argument from me!

Speaking of Bailouts....

I came across this article a few months ago, thought you guys might enjoy this:

https://www.smh.com.au/business/fannie-freddie-under-pressure-to-start-buying-20081013-4zwn.html

The Sydney Morning Herald is published in Sydney, Australia - about as far away from the U.S. as you can get without a spaceship. It appears as if this article only ran in this paper - I can't find any other publication that carried this story at the time. The author, Dawn Kopecki, is a business reporter and I think she was with Bloomberg at the time this was written.

"...Spokesmen for Fannie and Freddie would not comment..."

"...FHFA spokeswoman Stefanie Mullin would not comment on the details of the program. Treasury spokeswoman Jennifer Zuccarelli was not immediately available for comment...."

"There's already so many cooks in the kitchen, I don't think Congress will be involved. They had their chance in the last 15 years and not much was accomplished (to say the least).
Thanks, good luck!"

Let's tweak your statement a bit and it will be perfect:

There's already TOO many cooks in the kitchen, I don't think Congress will be involved. They had their chance in the last 16 years and NOTHING was accomplished (to say the least).
Thanks, good luck!

NEE, the largest electric utility pays $2.06/year and DUK pays $4.18/year in dividends now. FNMA paid $2.28/year in 2008 until the slide started in 2Q 2008. Fannie was much smaller then.

There's already so many cooks in the kitchen, I don't think Congress will be involved. They had their chance in the last 15 years and not much was accomplished (to say the least).
Thanks, good luck!

Alright So a bit of trading between yesterday and this morning. I now officially have all of my FNMA FMCC shares at a zero cost basis.
Great feeling! But still have a s-load of shares and will be very pissed off when it dips for no F'in reason.

My guess is that after confirmation, Mr Bessent will get His interview, hopefully with Maria, who will pose the CONservatorship question. She has been good and appears sincere towards Shareholders and deserves that opportunity/interview. GLTA

Thanks Nats. Seems like the div yield and potential cram down risk will dictate the potential upside on common then. If you assume $ 12.5 bn earnings for FMCC and a 50% payout ratio - pro forma market cap is $ 125 bn and we need $ 125 bn for regulatory cap. I was assuming 3% div yield and higher potential valuations.

If that’s what Congress wants, then they shouldn’t let the Housing Oversight Board go rogue while ignoring the GAO’s recommendations. Even former President Clinton admitted fault. That’s the difference between solid fiscal policy and what we have witnessed with a Congress that appears to have failed to support a balanced budget.

We hope, we pray and ‘We The People’ take action. GLTA with your support of this legislation process. I really enjoy reading your comments.

“The biggest hang-up from both sides is the "private gains, taxpayer bailout" scenario they don't want to repeat.”

Thanks

Thanks

I'm not convinced the DOGE will be sniffing around. FHFA is not a taxpayer supported agency unless something has changed. Fannie Mae and Freddie Mac supply their funding so we have been screwing ourselves all this time. Adam wouldn't have even needed Eve in the Garden of Eden if in our situation. He could screw himself!

As much as I wish for $3, it’s not happening today we are too far from $3 to print $3.

In fact I think we might stay in the $2’s for a bit.

Congrats on the great season. I wish you guys luck. As a Browns fan, I understand your misery very well unfortunately lol. Campbell is a great coach. I love his mentality. His players would run thru a brick wall for him.

Yep - fleecing is the key word... Most people just think these Uber rich set really care about their situation and aren't they smart enough to see what's going on behind the shiny objects..

With a utility model FHFA still does not need 1200+ people.
Maybe 100 at most.

Look - I agree that 2 GS-5s and an untrained dog could run the place. But - wouldn't it be better to lay low on this issue and not disrupt the agency until we get our release set up? The last thing we need right now is for DOGE sniffing around. After that, I will go downtown and help them to load the UHaul.

Nats

The updates on the Manhattan side need to be done - Pier 17 and Tin Building are ok, but it's lagging behind the Brooklyn side, for sure.

Utility Model, a government allowed monopoly. Fannie and Freddie would become dominate in the secondary mortgage market as a public service. Not to say other businesses would not be allowed in the secondary market. Operations would be monitored by a public utilities commission or similar government agency. Fannie and Freddie would operate as a public-service corporation and providing essential services to the public. Monopoly would exist as a cost-effective way to provide consumers with the best quality and price. For the best interests of society providing these services economically accessible to most or all of the population.

For investors, price control by the regulator with a predetermined profit margin, which would be limited to a predetermined % amount. No competition from the TBTF Bankers.

Duke Energy - which someone provided as an example - is 3.65% so all this is within the ballpark. It may be frustrating to wait for more cap, but you are still talking almost $30B per year organically. Also, as it stands now, juniors would get the first $2B, averaging a 6% dividend.

These aren't tech companies and don't expect to see mega earning growth each year going forward. Because of the heavy regulation that continues after release, I have always assumed that, if not utilities per se, they would be released with some kind of earnings restriction.

To make the stock attractive as possible I think the dividend will be in the 4-5% range.

Nats

Yes I'm aware. It's all just a " sales pitch" to pretend to be doing something while the fleecing continues. Our hope as longs here is trump will somehow position himself to reward from the release. Then we are golden sooner than later. However I have little faith in any of them but would not sell a share regardless at this juncture. I would love to see a take down to 50 cents again so I could double my position :) I know they will be released...just not by whom or when like everyone else. Meanwhile traders and Hedgies are making millions off newbs every day with this trade and HFTs. At least my shares cost me nothing so I'm a lot less stressed over this theft.