Wise Man
1 hour ago
Unprecedented.
.@TheJusticeDept REPLIES TO BERKO'S ATTY, D.THOMPSON, AFTER HE SEIZED WAZEE II
Hume terminated #SCOTUS(Rehab)/Lamberth, by challenging #Trump's NWS 2.0:
"NW↑,provided that💯% is SPS"
▪️DT lifted the scheduled amended complaint
▪️Hume voluntarily dismissed Wazee I(CFC)#Fanniegate pic.twitter.com/97gi81kEGS— Conservatives against Trump (@CarlosVignote) July 30, 2024
navycmdr
2 hours ago
$FNMA $EARNINGS from 10Q - Summary of $Financial $Results
•Net worth increased to $86.5 billion as of June 30, 2024
from $77.7 billion as of December 31, 2023.
Quarterly Results
•Net revenues increased $231 million in the 2nd qtr 2024
compared with the second quarter of 2023.
•Net income decreased $510 million in the second quarter of 2024 compared
with the second quarter of 2023, primarily driven by a decrease in benefit
for credit losses on single-family mortgage loans partially offset by an
increase in net interest income.
Year-to-Date Results
•Net revenues increased $477 million in the first half of 2024
compared with the first half of 2023.
•Net income increased $38 million in the first half of 2024 compared with the
first half of 2023, primarily driven by an increase in net interest income and
an increase in fair value gains, partially offset by a decrease in benefit for
credit losses on single-family mortgage loans.
•Net worth increased to $86.5 billion as of June 30, 2024 from $77.7 billion
as of December 31, 2023.
Closing the Home ownership $GAP ?
Sandra totally clueless .... pushing Socialist down payment assistance
bloated FHFA cost "is" the problem & did NOTHING ! - WIPE it OUT !
FANNIE & FREDDIE have REFORMED THEMSELVES !
RELEASE FANNIE & FREDDIE NOW for crying out LOUD !
The FHFA Generative AI in Housing Finance TechSprint is an in-person,
team-based problem-solving event hosted by the FHFA
Office of Financial Technology. The Tech Sprint brings together technology,
regulatory, housing, and consumer finance experts to identify use cases
and associated control measures to support the responsible use of
generative AI in housing finance.?
Wise Man
6 hours ago
The stocks traded sharply lower after the confirmation that repealing their Charter Acts is a government policy that started out in 1992 with a request of a study, and it was implemented in 2011 with the Privatized Housing Finance System chosen by the Treasury Department for the release from the Conservatorships, as spotted by investors that have the Charter revoked as the end point. That's what "privatization" is about.
What HERA did, is to enable a Separate Account plan and keep it secret, with a "back-end" Capital Rule thanks to the absence of the required 18-month IMPLEMENTATION period; eliminating the MANDATORY release when FnF return to the Undercapitalized threshold (Core Capital > Minimum Leverage Capital level, currently an adjusted $402B capital shortfall); and a second UST backup of FnF at up to infinite rates, at a time when the capital distributions are restricted (Dividends; today's SPS LP increased for free; the Lamberth rebate).
The Separate Account ticks all the boxes required in the study for repealing the Charter Acts:
☑️ Cost of capital to FnF: The cost of funding is related to the UST backup of FnF at rates similar to Treasuries, as stated in the GAO report posted below,
GSEs have access to federal funding should it ever be necessary. This has meant that capital markets treat most GSE debt as only slightly more risky than that of the federal government.
as a last resort ("The operations thereof, shall be financed by private capital to the maximum extent feasible", which means that, at some point, it might not be feasible. Hence my "as a last resort" remark. The operations are financed by both Debt and Equity. FnF needed Equity, and the SPS are the perfect security "obligations in respect of capital stocks" to record the taxpayers' assistance. Section: Statutory Purposes).
Upon Charter repealed, it's substituted for their strong capital level of CET1 roughly 2.8% of Adjusted Total Assets under the Separate Account plan, and a strong Liquidity position (Contingency portfolios, plus the liquid portion of their mortgage-related portfolios, stand at $154B and $142B in FnF, resp.) with, additionally, the Restricted Accounts (Fannie Mae holds an outstanding $21B in cash). Their cost of funding could be even lower than the Treasury yields.
☑️ Increased amounts of capital: They were determined already, in the 2021 Capital Rule. Due to the abnormal delay and obscurantism, I've been posting my estimate of capital requirement since many years before. The Conservatorships have been used as a Transition Period to build capital, which is given by the regulators always that there are changes in the capital requirements.
☑️ The effect of removing the Local and State tax exemptions. This is a GAO report that came out pursuant to the aforementioned 2-year study for repealing their Charters:https://www.gao.gov/assets/t-ggd-94-182.pdf contending that the outcome would be a lower Federal corporate income tax, because the State and Local taxes are deductible expenses. The overall profitability would be slightly lower, affecting their shareholders.
GAO highlights that, in this case, competition between FnF would hinder that this extra cost is passed onto customers (The commingled securities since June 2022, bring in more competitors. Not now, that we see FnF reinsuring each others' UMBS. The never-ending "pilot program").
☑️ Effect on Housing Affordability: The borrowers benefit from the liquidity in the MBS market. Not only it isn't affected once their Charter Acts are repealed, but it will be boosted with new entrants in the Guaranty Mortgage Securitization business:
-The UMBS brings homogenization of products.
-The CSP has brought the standardization of processes.
-Commingled Securities (Resecuritization or Reinsurance): multi-guarantors.
-Aligned pooling practices boost the liquidity too: this is related to uniform cash flows, which are negatively affected by the judicial foreclosures, the prepayment risk upon refinancings (MBS investors pay more when they consider that a pool of mortgages has low probability of refinancings), etc. Currently, their "not aligned ESG pools" (Social bonds) go to the detriment of liquidity and thus, pricing.
The plotters are annoyed and they tumble the stock prices when they see the Separate Account plan clearer.
The shareholders are reassured in their complaint about the existence of a Separate Account plan that is being concealed by the authorities, with more evidence pointing to a government policy that seeks the endgame of repealing the Charter Acts.
The lawmakers of 1992 were statesmen. To the old-timers!
TightCoil
19 hours ago
From Inside Mortgage Fiance
A Presidential Election and the Long Odds of GSE Reform
Every presidential election, like clockwork, the debate over government-sponsored enterprise reform returns: Should Fannie Mae and Freddie Mac be released from conservatorship? And if so, how?
Over the past few weeks, a couple of well known GSE watchers — naysayers both — have made some interesting observations. One of those is Michael Bright, CEO of the Structured Finance Association and former chief operating officer of Ginnie Mae.
Speaking at an event hosted by Women in Housing and Finance, Bright highlighted some inconsistencies in the arguments of those who favor the full privatization of the enterprises. “Let’s say you’re going to do it,” he said. “I think you’re going to have to lie to someone. Your choices are: You’re going to lie to Congress or you’re going to lie to ratings agencies and investors.”
Another industry veteran who doubts the GSEs will be released from conservatorship in a potential second Trump administration is Chris Whalen, chair of Whalen Global Partners.
For the complete story, see the new edition of Inside The GSEs, now available online.
navycmdr
19 hours ago
total Garbage IMF article by GSE naysayers out today
is why we're very red just before earnings - BUY BUY BUY !
Every presidential election, like clockwork, the debate over government-sponsored enterprise reform returns: Should Fannie Mae and Freddie Mac be released from conservatorship? And if so, how?— Cmdr Ron Luhmann (@usnavycmdr) July 29, 2024
Speaking at an event hosted by Women in Housing and Finance, Bright highlighted some inconsistencies in the arguments of those who favor the full privatization of the enterprises. “Let’s say you’re going to do it,” he said.— Cmdr Ron Luhmann (@usnavycmdr) July 29, 2024
Another industry veteran who doubts the GSEs will be released from conservatorship in a potential second Trump administration is Chris Whalen, chair of Whalen Global Partners.— Cmdr Ron Luhmann (@usnavycmdr) July 29, 2024
Rodney5
23 hours ago
The link below may not continue to work, the FHFA freely admitted the companies were adequately capitalized. You can't justify what these unelected bureaucrats did on an assumption the companies may run out of money.
SECOND QUARTER CAPITAL RESULTS
Minimum Capital
Fannie Mae’s FHFA-directed capital requirement on June 30, 2008, was $37.5 billion and its statutory minimum capital requirement was $32.6 billion. Fannie Mae’s core capital of $47.0 billion exceeded the FHFA-directed capital requirement by $9.4 billion.
Freddie Mac’s FHFA-directed capital requirement on June 30, 2008, was $34.5 billion and its statutory minimum capital requirement was $28.7 billion. Freddie Mac’s core capital of $37.1 billion exceeded the FHFA-directed minimum capital requirement by $2.7 billion.
Link: https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Suspension-of-Capital-Classifications-During-Conservatorship-and-Discloses-Minimum-and-RiskBased-Cap.aspx#:~:text=During%20the%20conservatorship%2C%20FHFA%20will%20not%20issue%20a,submit%20capital%20reports%20to%20FHFA%20during%20the%20conservatorship.