Fannie Mae (QB) (FNMAI) Quote

Hope breaks out over $1.30

Yeah. GSEs passed all stress tests and got Nationalized. Other banks failed the same stress tests yet were given loans with 2% interest and let keep going while their bad loans were forced on the GSEs.

Yer but if the DJT admin (if they win) can't deal a cancellation of all shares both common and JPS when there donors have large portions of both. Why would they wipe out shareholders that give money to the campaign ??

Now if these CEO's of both company's are getting stock as a bonus then when???? That would tell you something.

Especially considering they did it upon the premise of "insolvency", of which nothing was further from the truth.

I am a SHAREHOLDER. The government isn't. If it were, the SPS would be counted as capital and there would have never been a need for conservatorship in the first place.

Our topic is spspa !
What is the purpose of spspa ?

The purpose of spspa is to protect bond debt securities which Freddie Mac delisted on June.
For the past 16 years, all president administration didn't want to delist the bond.
Now that bond was out of the picture,
Do we still need spspa to protect the bond ?

If all president administration didn't want to delist bond. Who ordered to delist bond ?
It must be Lamberth.

Hasn't the government already breached ALL faith by Nationalizing these companies?

I've heard so much logic, excellent/outstanding logic, all these years that I don't even know what to think any longer. Your suggestions are valid. It's the government and their positions that simply have not made sense so who knows what they are thinking, or what we should expect. Expect the worst and pray for the best.

Good point. Who knows what it means then? lol.

Then it will be a breach of good faith and fair dealing of minority shareholders.

Strong!!

Finally getting long overdue traction

Spspa can only be sold before 8-0 verdicts.
Verdicts are the verdicts, now waiting for Lamberth for what he has to rule on.

Lmao even though I would be “fine” thanks to pref position I would be furious about the loss of potential from my common holding which should be set to increase exponentially once freedom has been secured. My overarching thesis has changed and now assumes that release is coming and common shares at WORST lose 4/5ths ownership value with exercise of warrants (which is a stupid premise to begin with as they were only intended to be a backstop preventing losses and the duration on them was BS to boot). That said with the growth of the company and retained earnings it would still mean $20-30 a share is real and easily accomplished.

I think my new preferred release terms would be
1. LP/SPSA written off as paid in full.
2. Warrants sold back to FNMA/FMCC valuing them on the weighted average share price the last 5 years.
3. Explicit guarantee backing the companies in exchange for a realistic small fee. Small fee can be used to extend housing assistance to first time buyers or low credit loans or whatever government wants for “mission driven lending”

This means government benefits from
1. Paid in $$$ which is $100B profit from initial loan.
2. An additional lump sum from warrant tender
3. Perpetual money to fund their housing plan which is free money for what they were already implicitly doing.

If they go this route shares are easily $100+. Rewarding those who have been stuck holding for 15+ years and those with the fortitude to buy a company stuck in government purgatory. Unfortunately government probably doesn’t want to reward shareholders that handsomely so unlikely but I think it would be reasonable… you know… as a shareholder

Nah Calabria wouldn't be hanging out on a message board w/ small time retail traders that dabble in conspiracy theories...

Agree. But sad! Many "investors" promote some terms they don't understand. Some examples of the past are pivot security, IPO and capital structure. Our own Rick thinks getting rid of SPSA is free money. Sad! Sad! Sad!

i dont think so, no institution, or investor would touch them after that. and they whomever steals the capital stack from shellman and KTCarneyCorkerCircus garage gang we can then files class actions all day long for Trillion dollar assets.

Do you suppose Ackman would be a happy camper....where does one get that kiteflying nonsense from?
FNMA

Probably the shares get wiped out on exit so all of us with commons are screwed.

I’m predicting $1.37 close!
All I do is spew nonsense, I haven’t been right yet. Anyone want to hear a poem?

Thanks for the advice, but I enjoy the rational discourse that which some members engage. Also, frankly, the history of this saga interests me greatly and there are few other venues to discuss it with people who understand the nature of what has been done over the years. Forgive me the indulgence, but even though I am not as vested as some others any longer, I am vested emotionally because it's so difficult to believe this could happen here in this Country.

I'll partially agree. #1 seems reasonable. The rest is garbage.

I'm starting to think Calabria was on this board. Maybe KT could tell us accurately what Calabria thinks because he was/is him? Always pumping that damn book. Always talking about probability percentages.

Where is Wiseman with the multiple people theories when you need him...

And remember -
However lawless you suspect federal agencies might be, I can assure you from first hand observation, it’s a lot worse. - Mark Calabria, June 29 2024

serious question

why would F and F be losing a large amount of money in the CRT program

if the underwriting of risk is close to accurate F and F sell paper for a good price ?

my two cents again

1. Kill the SP/LP obligation --- a must - and IMO does not need Congress or even POTUS

2. PPS IMO at that point goes up to say 8 --- as reserves are now positive and real

3. Any major change - IMO - after that might might - need Congress or

4. In particular I want to see an equity owned national utility model for F and F -- such that they face some things they need to do that others do not need to do -- but - but the utility gets a GOV backing !! - secondary to reserves - but a GOV backing

5. The path of utility with obligations but backing is open to ALL to create if they wish (e.g. TBTF banks would keep private label per bank but form a CO-OP to own one utility model - if only to test out the value of the Guarantee

The New CEO Diana Reid of FMCC reported zero shares yesterday, so all execs in both companies hold zero shares…

WTF does that tell ya?

SPSA can be sold back to the companies also.

Two people who were in the prior Trump administration, Mnuchin and Mulvaney, have acknowledged that the government has been paid back in full. Returning stolen property ISN'T free money.

MC is as relevant as more GSE skateboarding guru’s 0.05 expectations.
MC is trying to stay relevant as he tries to peddle more widgets. Sorry MC, no job for you as you f’d up the last time.
Fnma

The chances of the agencies going private in 2025 is “zero,” Calabria said. “But by [2027] I would say there’s maybe 70% chance.”

https://finance.yahoo.com/news/fannie-freddie-aren-t-going-173834515.html

Agreed - Whatever admin gets in will want to release these in a way that benefits them politically. The GSEs operations have been cleaned up and the gov't is not skimming $$ to the Treasury anymore. Either one will want to position them for release before the next parties administration can get them.

Interestingly, former White House housing official Jim Parrott, who joined Calabria

for the CHLA roundtable discussion,

said a Kamala Harris-led administration could also remove the GSEs from conservatorship.

Under that scenario, “they will try to find ways to bake what we have in conservatorship that they like in in a way that is durable outside of conservatorship,” Parrott said. “And they think about the GSEs as some mission-focused utility, agnostic as to ownership — privately-owned, government corporation, whatever. But they will move in that direction.”

Fannie and Freddie aren’t going private anytime soon, Mark Calabria says

The former FHFA leader said that the GSEs won’t exit conservatorship in 2025,

but the chances are much higher by 2027 under a Trump regime

September 17, 2024, 1:38 pm - By James Kleimann

If Donald Trump wins a second term in the White House, he’s going to attempt to return Fannie Mae and Freddie Mac to private status after more than 16 years under federal conservatorship. That’s according to Mark Calabria, the former head of the Federal Housing Finance Agency (FHFA) under Trump.

As for the mechanics of removing the government-sponsored enterprises (GSEs) from conservatorship, Calabria said it would take several years to pull off. He noted there are detailed plans in place from when he was last in charge of the FHFA and Steven Mnuchin was the secretary of the U.S. Department of the Treasury.

“A new Treasury secretary is also probably going to have to go through six to nine months of doing the rounds, and talking to people and hearing the enthusiasm, before they figure out that Congress isn’t going to do anything,” Calabria said in remarks given Monday at a Community Home Lenders of America (CHLA) event in Washington, D.C.

“And so, if you start from the premise of ‘Congress is unlikely to do anything,’ then what do you have to do? There’s nothing about the conservatorship that changes the implied guarantee. Despite what maybe some people in capital markets may believe, there’s no guarantee in conservatorship; there’s no guarantee out of conservatorship.”

The chances of the agencies going private in 2025 is “zero,” Calabria said. “But by [2027] I would say there’s maybe 70% chance. … Almost every decision you think you have to make, we scoped out. All those millions of dollars with my go ahead, low-key actually produced documents. So, there are plans; there are options. You can get them out. It’s all feasible, doable.”

Last week, The Wall Street Journal reported that several Trump allies have been working since the spring on a plan to remove the GSEs from conservatorship.

One element of the proposed plans include “having the Treasury Department partially back a certain amount of Fannie and Freddie loans through a so-called standby guarantee,” according to WSJ sources. “[This is] similar to the way the Federal Deposit Insurance Corp. (FDIC) backs deposits below a certain threshold at banks.”

Regarding paths to privatization, one discussed method is to reportedly bypass both houses of Congress and instead commence the process through the FHFA. The agency would be “key to any plan,” the report said, since it establishes the GSEs’ capital requirements. Any additionally derived value from the GSEs could be divided between the government and GSE shareholders, which could avoid drawn-out and costly legal proceedings.

Interestingly, former White House housing official Jim Parrott, who joined Calabria for the CHLA roundtable discussion, said a Kamala Harris-led administration could also remove the GSEs from conservatorship.

Under that scenario, “they will try to find ways to bake what we have in conservatorship that they like in in a way that is durable outside of conservatorship,” Parrott said. “And they think about the GSEs as some mission-focused utility, agnostic as to ownership — privately-owned, government corporation, whatever. But they will move in that direction.”

https://www.housingwire.com/articles/fannie-freddie-not-going-private-mark-calabria/?cx_testId=3&cx_testVariant=cx_1&cx_artPos=1&cx_experienceId=EXZNOASUT0V6&cx_experienceActionId=showRecommendations1PUX5DNS13CDGZ3#cxrecs_s

Could Kamala Harris’ ambitious housing plan actually pass? Maaaybe

According to Obama-era adviser Jim Parrott, there are pieces of the proposal

that Republicans could be open to

September 17, 2024, 2:23 pm By James Kleimann

A historic rise in home prices and nearly three years of high mortgage rates have put housing issues front and center in the 2024 presidential campaign. Kamala Harris has outlined an ambitious vision for housing that would involve the construction of 3 million new homes in four years.

At a policy discussion on Monday hosted by the Community Home Lenders of America (CHLA), Parrott Ryan Advisors owner Jim Parrott — a former White House housing policy leader during the Obama administration — said that Harris’ plan is heavy on supply-side initiatives. And that’s a good thing.

Parrott pointed to four key components:

🏡 Expanding the Low Income Housing Tax Credit (LIHTC) program by increasing the credits available and decreasing the bond amounts to make the math pencil out
🏡 Providing a similar tool for single-family homebuilders who build and sell a home to a first-time homebuyer
🏡 Tax credits that would make it economically feasible for builders to purchase and renovate buildings that are falling into obsolescence, a key strategy in several Rust Belt cities
🏡 A $40 billion catch-all fund to deal with local zoning constraints and shortfalls in infrastructure

The most well-known component of the plan — $25,000 in direct assistance for first-time homebuyers — would only kick in when supply-side elements have made an impact.

Will it pass? An enormous amount depends on the makeup of Congress come January. Parrott said there are pieces of the proposal that Republicans could be open to — and a huge debate over tax reform that is playing out at the same time helps.

“If her whole proposal were about supersizing grants or appropriations, then I would say forget it, it’s just a campaign thing,” Parrott said. “But because most of what she’s pushing is a supply-side push and is on the tax side, there will be a pretty broad constituency … pushing this from industry and among stakeholders.”

Down payment assistance, along with funding for communities with zoning or infrastructure needs, have a lower likelihood of passage because they are based on appropriations, Parrott said. But the updates to LIHTC and the builder tax credit proposal are more promising, he added.

Should Harris not receive the support needed to pass key elements of the plan, there is another option. She would likely look to pull “administrative levers” at the Federal Housing Finance Agency (FHFA) and the U.S. Department of Housing and Urban Development (HUD), he said.

Trump housing initiatives
Meanwhile, Donald Trump‘s campaign has unveiled few specific housing policy proposals and has broadly tied the housing market to the overall economic climate. That’s according to Mark Calabria, the former head of the FHFA, who joined Parrott in the CHLA roundtable discussion.

He told the audience of lending executives that “jobs creation is a housing policy as well.” While the Harris campaign uses the existing framework, Trump is less likely to use the same toolkit, Calabria said. He noted that Trump would likely look at streamlining regulatory authority and doing some reforms around housing permits and land use to bring down the cost of housing.

“A lot of conversation in 2025 will be on individual taxes. … If I was a betting man, I would say it all gets extended for a year,” Calabria said, noting that neither candidate will have 60 votes in the Senate. “Things like the mortgage interest deduction, things like SALT (state and local taxes), perhaps things like tax credits on the buyer side or the builder side, all of that will be on the table.”

Calabria repeatedly said that the credit box expanded too much after he left the agency, which has driven up demand and reduced housing affordability. Trump would look to fix that administratively through the GSEs or its regulator, Calabria said.

How come the treasury is always an ex Goldman alumni with an ISH ending?

No offense but it’s very real and shouldn’t be the standard.

The FULL EXIT will probably be 3 years but the beginning of the irreversible process... I would peg it around ~18 months or so.

First step is to fire Sandra and replace her with someone new along with all new appointments for the administration. This will probably be at least 6 months.

If new director and it's not Calabria, they'll go through all of the motions as calabria said (talk to congress etc etc) that will take another 9 months.

However, once the conservatorship has been decided and announced, there will be no turning back.

They should!!! The Government has stolen enough from private shareholders.

Warrants will not be exercised. It is virtually impossible at this stage of the game. At best warrants can be sold back to the companies for a nominal fee. However the SPSA is a completely different situation. The Treasury is not going to magically cancel the SPSA and walk away from free money.

Exercising the warrants is a bad idea, no matter how you look at it

if 45BP goes for back up credit line to Treasury for FDIC like purposes, and 35-45BP goes to the GSEs for Gfee, the interest rates are gonna be very high

I aint no expert, but this wont work according to my peanut sized brain.

Boooooom ! Housingwire Sept 17th

3. "Any additionally derived value from the GSEs could be divided between the government and GSE shareholders" is an elephant in the room. The Gov't can generate $200bn+ by selling off its warrants representing 79.9% ownership in the companies.— Cmdr Ron Luhmann (@usnavycmdr) September 18, 2024

FNMA
In 3 trading days, we've gone from $1.10 to $1.25 - Almost 14%
What's it mean, Newbies, Load Up and Don't Look Back

IF squinty thinks it will take a Trump term 3 years at the least to release these, how many of you are going to be really happy? Give a thumbs up if happy, thumbs down if thats not fair

For playing with some free money, you are spending way too much money on this board.. Just go and enjoy life.. IF this makes money, that day you can check the bank account enjoy

Rest of us, we have a lot riding on this to success. In your case, its a meh, if it goes to zero, no big deal

Squinty still wants 3 more years ? LOL

He says no chance of 25 and may be in 2027...

Squinty is a perfect fit for bureaucratic DC Red tape government

Just sent this to Harris: https://www.whitehouse.gov/contact/vicepresident/
I'm a long time Fannie Mae and Freddie Mac shareholder, Freddie from the time ofthe imposition of the Conservatorship. As you're probably aware a great many of us Shareholders have really suffered some financial stains because of the Conservatorship and actions taken later relating to its administration. Common shareholders are desperate to see Commons prices back to Pre-Conservatorship Days.
By getting something on your agenda and announcing it, regarding Fannie and Freddie (the GSE's) would enable us to have a more positive outlook.

parrot the poop cannot pop it. his name shrieks of poop

It saved the world from 2 posts

1) Crappy day post
2) Sherwin williams post

It also saved the planet... and Saved some trees.. Yes, I do take a print out of your ihub posts too.. :)

Unfortunately it did not do much for the share price other than maybe a one cent pop.

Now both have spoken. I am seriously thinking I am influential. My 1 vote matters ...

Now both have spoken. I am seriously thinking I am influential. My 1 vote matters ...

Are they reading my messages ? LOL

when parrott speaks, run to the bathroom and vomit