Louie_Louie
11 hours ago
I still think Ackmans higher end is the fair price for any buyout of commons. When he did his study and power point presentaton his estimate was like $24 to $45 a share. I think at current capital levels, the book of business and how they keep growing, the $40-50 range would be a fair buyout, considering the government would no doubt be selling renewed IPO shares at $50 plus. They know the true value is north of $250. The only reason they'd do a buyout and re-IPO is so all those money grubbing politicians and their supporter friends, family can get their insider buys made before or during. Once any Sovereign buys in, the prices will climb quickly and high.
navycmdr
24 hours ago
Booom Booom Booom !
https://www.wsj.com/politics/policy/trump-allies-are-working-on-plans-to-privatize-fannie-and-freddie-a9c4e5ff
-Trump Allies Are Working on Plans to Privatize Fannie and Freddie
A deal would call for the government to try to sell a chunk of its holdings in the mortgage giants to investors, including sovereign-wealth funds
Anna Maria Andriotis
 & Gina Heeb
Updated Sept. 13, 2024 12:02 am ET
Donald Trump’s allies want once again to try to untie the Gordian knot of the mortgage market: what to do with Fannie Mae and Freddie Mac.
Former Trump administration figures and bankers have been discussing plans on ending U.S. government control of the mortgage-finance giants should Trump win the presidential election, according to people familiar with the matter. The talks have been under way since at least this past spring and include reaching out to investment managers for advice on how to get the deal done.
Trump confidants including Larry Kudlow, former director of the National Economic Council, and John McEntee, former director of the White House presidential personnel office, are among those involved, the people said.
“The [former] president himself has never said anything about this throughout the campaign,” a Trump campaign spokeswoman said.
The government’s stakes in Fannie and Freddie could be valued at hundreds of billions of dollars, bankers estimate. That could allow the government to sell more than $100 billion of securities in one swoop, some bankers say. That would top the biggest stock and bond offerings in history and require interest from the largest investors, including sovereign-wealth funds.
Earlier efforts to free Fannie and Freddie from government control, including during Trump’s presidency, failed. Critics worried about the companies’ safety and the impact on the housing market, which relies on their backing. There were also doubts about whether bankers could actually drum up enough money.
A top focus of the talks is ensuring that the companies will be well capitalized so as to not pose a risk to the U.S. housing market. The role of Fannie and Freddie in funding 30-year mortgages, the foundation of the U.S. housing market, has hinged on the government’s full support.
The Trump allies have discussed having the Treasury Department partially back a certain amount of Fannie and Freddie loans through a so-called standby guarantee, the people said, similar to the way the Federal Deposit Insurance Corp. backs deposits below a certain threshold at banks.
Fannie and Freddie purchase and securitize a huge portion of loans in the U.S. residential and commercial mortgage markets. Nearly 40% of the $435 billion of residential loans originated in the second quarter were sold to Fannie or Freddie, according to Inside Mortgage Finance. The two firms owned or guaranteed roughly 40% of the $2.2 trillion in multifamily mortgage debt as of September 2023, according to estimates from their latest annual filings.
Fannie and Freddie operated with implicit government support when they were created but have been under full government control for 16 years. After a 2008 rescue, the Treasury Department took warrants to purchase about 80% of common stock at Fannie and Freddie, as well as senior preferred shares. Other investors can own junior preferred shares, which used to pay a dividend, or common stock.
Trump’s allies and other Republicans view privatizing the firms—or putting nongovernmental shareholders in control—as a way to reduce the country’s deficit and return money to taxpayers.
Opponents of privatization have said that it would decrease access to credit for home buyers and increase the risk for taxpayers.
Different paths being discussed
Trump’s allies are assessing different paths to privatization. One includes bypassing congressional approval and instead proceeding through the Federal Housing Finance Agency, which oversees Fannie and Freddie, and the Treasury Department, the people said.
The FHFA would be key to any plan. It sets the capital requirements and other standards for Fannie and Freddie.
The allies are discussing how to divide any newly found value between the government and other shareholders and avoid drawn-out legal battles.
The preferred and common shares had rallied after Trump’s 2016 election and his 2019 proposals to privatize the companies, only to fall during the Biden administration.
Big investors could profit
Some prominent hedge-fund investors, and Trump backers, have for years been pushing for Fannie and Freddie to be freed from government ownership. Depending on the plan, they could stand to profit handsomely.
Bill Ackman’s Pershing Square owns a roughly 10% stake in the common shares of both Fannie and Freddie.
John Paulson, who is viewed as a potential pick for Treasury secretary under Trump, owns a sizable investment in the preferred shares.
Both Paulson and Ackman have endorsed Trump for president.
“The conservatorship was always intended to be temporary so it makes sense that policymakers release them from conservatorship now that reforms are complete,” a Paulson spokesman said. “The government will be the biggest winner in a release of [Fannie and Freddie].”
Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com and Gina Heeb at gina.heeb@wsj.com
navycmdr
4 days ago
Freddie Mac Names Industry Leader Diana Reid CEO
September 10, 2024 9:01 AM EDT Tweet Share E-mail
Transition to take place immediately !
MCLEAN, Va., Sept. 10, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced that its Board of Directors has selected real estate and financial services industry veteran Diana Reid to serve as the company’s chief executive officer (CEO), effective immediately. Ms. Reid also will serve as a member of Freddie Mac’s Board of Directors. President and Interim CEO Michael Hutchins will continue as the company’s president.
Ms. Reid brings more than four decades of banking, real estate, capital markets and affordable housing experience to Freddie Mac, most recently serving as an independent director and advisor to several organizations. She spent nearly 12 years leading PNC Financial Services Group, Inc.’s real estate business division through the financial crisis and on to a period of significant growth.
“I am pleased to announce that Freddie Mac’s Board of Directors concluded its comprehensive search and selected Diana Reid as the company’s next CEO,” said Lance Drummond, non-executive chair of Freddie Mac’s Board of Directors. “Diana’s proven track record and vast experience in housing finance, real estate and capital markets make her an excellent choice to further Freddie Mac’s mission-driven work. I have the utmost confidence that she is the right person to take Freddie Mac into the future.”
Drummond added, “On behalf of the Board, I thank Mike Hutchins for his leadership as interim CEO, which provided necessary stability and continuity for Freddie Mac’s important work. We are delighted to benefit from his continued leadership as the company’s president.”
Prior to her executive role at PNC, Ms. Reid founded Beekman Advisors, where she provided real estate finance company owners, CEOs and boards strategic advice and M&A execution. She spent nearly 20 years at the investment bank formerly known as Credit Suisse First Boston in Mortgage Trading, Debt Capital Markets, and Financial Institutions Advisory.
“It is an honor to join Freddie Mac and lead the company as it carries out its vital role in the housing finance market,” said Diana Reid. “I look forward to working with the Board, management and my colleagues at Freddie Mac to continue and expand the company’s contributions in providing liquidity, stability and affordability for housing in communities across the country, and to ensure the company’s safety and soundness for the next generation.”
Diana Reid is a member of the board of directors of Welltower, Inc. (NYSE: WELL), the advisory board of Pittsburgh Opera, and a founding board member of The Denyce Graves Foundation. She earned her Bachelor of Science degree from California State University and her Masters of Business Administration degree from University of Virginia’s Darden School of Business.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT: Christopher Spina
703-388-7031
Christopher_Spina@FreddieMac.com
Louie_Louie
1 week ago
Who in their right mind would not want Elon Musk to lead a team to audit the governement! That should be the biggest story of the month. The free wheeling, spend crazy bureaucrats must be going into corners, shivering and shaking, knowing an audit is coming, lol. Imagine all the useless, senseless and crony spending projects that will be revealed! On both sides of the fence.
navycmdr
1 week ago
Freddie Mac Announces $233 million Non-Performing Loan Sale
(stronger everyday )
Includes two Extended Timeline Pool Offering Targeting Smaller Investors
September 4, 2024 10:01 AM EDT
MCLEAN, Va., Sept. 04, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today it will offer approximately $233 million in non-performing loans (NPL) for sale via auction. The NPLs being offered consist of seasoned, deeply delinquent residential first lien whole loans held in Freddie Mac’s mortgage-related investments portfolio. The NPLs are currently serviced by Select Portfolio Servicing Inc., Newrez LLC, d/b/a Shellpoint Mortgage Servicing or Nationstar Mortgage LLC, d/b/a Rushmore Servicing.
The NPLs are being marketed via three pools: a Standard Pool Offering (SPO®) and two Extended Timeline Pool Offerings (EXPO®), which target participation by smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs).
Bids are due from qualified bidders by September 26, 2024 for the SPO pool, and October 10, 2024 for the EXPO pools.
All eligible bidders, including private investors, MWDOBs, non-profits and neighborhood advocacy organizations are encouraged to bid. To participate, all potential bidders must be approved by Freddie Mac and successfully complete a qualification package to access the secure data room containing information about the NPLs and to bid on the NPL pool(s). The bids are to be made on an all-or-none basis for any pool. The winning bidder for each pool will be determined on the basis of the economics of the bids, subject to meeting Freddie Mac’s internal reserve levels, at Freddie Mac’s sole discretion.
Advisors to Freddie Mac on the transaction are Citigroup Global Markets Inc. and First Financial Network, Inc., a woman-owned business.
Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way. This includes sales of NPLs, securitizations of re-performing loans (RPLs) and structured RPL transactions. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $78.6 billion of RPLs consisting of $30.4 billion via fully guaranteed MBS, $35.5 billion via the Seasoned Credit Risk Transfer (SCRT) program, and $12.7 billion via the Seasoned Loans Structured Transaction (SLST) program. Requirements guiding the servicing of these transactions are focused on improving borrower outcomes and stabilizing communities. Additional information about Freddie Mac’s seasoned loan offerings is available at
http://www.freddiemac.com/seasonedloanofferings/.
The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com
CatBirdSeat
2 weeks ago
IT’S TIME…Hot Off The Press,
Glen Bradford Seeking Alpha…
“Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) are two government-sponsored enterprises ("GSEs") that have been in conservatorship since September 6, 2008. Hank Paulson and Dan Jester led Treasury's efforts to seize the companies and restructure their balance sheets to inject capital via the SPSPA, an agreement that was put in place after they were put in conservatorship that relied on FHFA's discretionary accounting authority to write down GSE assets to support the narrative of the enterprises needing capital.
In a world where it surely becomes inadvisable to hold the enterprises captive in conservatorship when their net worth eclipses their ERCF capital requirements, and where the Republican Party at large supports the end of conservatorships, my strategy is to continue to accumulate the junior preferreds (OTCQB:FMCKJ) at a discount to their intrinsic value. Fannie and Freddie have more net worth than ever before in history and a stronger earnings profile than ever before in history. They are safer than ever before in history. The acting CEO of Fannie Mae indicated that someone doesn't know how to take a victory lap by ending the conservatorships. I couldn't agree more.”
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