Fannie Mae (QB) (FNMA) News

just toying around with llama2 - AI model

Bryndon Fisher already filed an appeal with a Derivative Takings case (on behalf of FnF) after insisting to judge Sweeney, because it could only appeal the lead plaintiff (Fairholme) and not the 11 related cases. But he loves to be in the spotlight.
Then, the same claim was appealed to the Supreme Court with Andrew Barrett individually (Fairholme plaintiffs).
Everything denied, because Justice Alito already said that necessarily, there is a Separate Account plan for the rehabilitation of FnF, if you know what that means.
Anyway, this unsophisticated lawyer still doesn't understand that a Direct claim and a Derivative claim are, in essence, the same claim. Because what is swept is the Common Equity that belongs to the common shareholders.
INCOME STATEMENT
Net Income of FnF
+Other Comprehensive Income (OCI)
= Comprehensive Income (Net Worth increase), is the amount of SPS LP increased for free.


BALANCE SHEET: the quarterly numbers of the Income Statement posted before, are Accumulated here for the picture of the company.
Accumulated Retained Earnings account
Accumulated Other Comprehensive Income (AOCI)

Both are used to calculate the Common Equity, also known as the Book Value of a company that belongs to the Commons:
+Common Stock par value
-Treasury Stock (stock buybacks)
+Additional Paid-In Capital
+Accumulated Retained Earnings account
+AOCI


We see how the Common Equity is swept to the Treasury, when the Common Equity generated in the quarter is substituted for SPS in the Net Worth.
The figure of Net Worth under GAAP doesn't change.

Seeking Alpha, Yahoo and others don't tell us how they calculate their ridiculous estimates. Here's an article that says how it should be calculated. I exclude warrants from my calculations because warrants issued by one govt agency to another is a fraud.

https://corporatefinanceinstitute.com/resources/valuation/earnings-per-share-eps-formula/#:~:text=Since%20outstanding%20shares%20can%20change%20over%20time%2C%20analysts,that%20can%20affect%20total%20shares%20outstanding%20when%20exercised.

Another question for the accounting knowledgeable people.

If the warrants have not been exercised, why is the price per share earnings calculated as it includes that number of shares?

Fannie and Freddie warmin' up in the paddock
as we speaketh

Freddie made .52 more per share than Fannie! This is why the majority of my shares are in Freddie. I still keep 18 percent of my shares in Fannie. GLTA!!

The Federal Circuit will hear our derivative-case arguments later this year. I will be attending those arguments in person with our attorneys in Washington. I hope to meet many of my fellow shareholders there.— Bryndon Fisher (@bryndonfisher) May 1, 2024

Who's the author?

FMCC - Net Income up 39% YOY

That's why they call Buffett "Hawkeye, cause he's watchin'
Fannie and Freddie like a hawk, ready at all times to move

Wow! That's even better then Fannie! $4.30 for the quarter!

Freddie Mac Net Worth climbs to 50.5 Billion

Freddie Mac Reports 2.8 Billion Profit First-QTR-2024

https://www.freddiemac.com/investors/financials/pdf/supplement_1q24.pdf

What do fellow travelers do when faced with a log in the road?

Oh wow. Big day on day. Freddie reporting earnings this morning. Launchpad ready. Launch to the moon. Moon before noon. Anything under $2.50 is a great bargain. Buy all shares before WB gobbles them up. Oh wow. Ready the engines ready the rocket ship to the moon. All systems check. Here we go.

Is it just me or do idiots multiple quicker than normal people?

Fight for your right
A new journey to two starts today
Slap that ask
Door is open
Blowout earnings
Oh wow big day on deck
Crappy day
There were lots of big buys in
Take note
Strong buy anything under $2.50
Don’t let WB gobble up all the shares
We are begging another large bull run
Launch before lunch, moon before noon

China middle fingered to Brandon by NOT buying 400B treasury

China refused to buy 400B of treasury. Will they dump GSE?

FED may have to reduce 25 basis point to avoid crash of market because of impending major war in middle east.
FED needs to boost realestate by lowering interest rate.
That will be good for real estate and hence for GSEs.

Wiseman Quote: “ What has changed is the existence of a Common Equity Sweep, when it's substituted for SPS LP.
A NWS 2.0.” End of Quote

When you say Common Equity Sweep are you saying wipe out the Shareholders?

What is the right thing to do? The money kept by the Treasury by the NWS should it be applied to principle and 10% interest and over payment should be returned to the companies. $301 billion is more than enough to pay the liquidation preference and redeem the Senior Preferred Stock?

Same Financial Statement fraud: SPS LP increased for free and its offset with reduction of Retained Earnings in the same amount, are missing in their Balance Sheets.
If Fannie Mae states that
we had positive net worth under GAAP $82 billion.
Is because the figure if $82B is the only thing accurate under GAAP.
What is Financial Statement fraud is the components of this Net Worth. That is, the financial statement called Balance Sheet (picture of a company at a determined date).

Fannie Mae posts the same SPS LP, $121B.
The actual SPS LP outstanding stands at $203B, including the $4.3B SPS LP scheduled to be increased for free on June 30, corresponding to the $4.3B Net Worth increase in Q1. Under accounting rules, they must show up as of March 31, as no cash is expected to receive.
That is, $83B SPS LP and its offset with reduction of $83B in the Retained Earnings account, are missing.
Once both are posted, the statement:
we had positive net worth under GAAP $82 billion.
was true at the time, because the Net Worth is still $82B under GAAP.
What has changed is the existence of a Common Equity Sweep, when it's substituted for SPS LP.
A NWS 2.0.

BOOM. Fannie Mae meets market expectations of $0.00 EPS.
YEEEEEEEEEE!
Beware of the fraudsters that take the Net Income to calculate the EPS, instead the Net Income Attributable to common shareholders after the payment of dividends or other compensation to Preferred Stocks, in order to conceal the ongoing Common Equity Sweep (NWS 2.0).
The Common Equity generated in the quarter (Net Income + Other Comprehensive Income), is the Net Worth increase in the quarter that later is used to assess the compensation to the Treasury.

Reminder: this compensation is another Capital Distribution (number 1 in its statutory definition), just like dividends (#1 too), and thus, restricted.
Common Equity held in escrow, in order to uphold the CFR 1237.12 (we use the exception to this Restriction on Capital Distribution to legalize it: for the recapitalization) and the fhfa-c's Rehab power as well.

EPS at the bottom of the image.

I didn't consider that first angle - nor the third one

Don't let your memes be dreams

A determined traveler doesn't let a log
across the trail impede his journey

Go, Fannie, Go
Run, Freddie, Run

No doubt … I can’t tell you how many times I’ve breached the sanity barrier a la the Christian Bale and Steve Carell characters in The Big Short … knowing they were right about the corruption yet seeing their investments and funds bleeding to death waiting for reality to finally set in … we are all in the same position but may not reap any benefit … governments and agencies can remain corrupt much longer than we can remain liquid especially with the help of feckless courts and judges

Rip the band-aid once for all. Whichever way it's fine. Let the bleeding stop. Sick and tired

Oh wow. Did you just have a brain fart ? I recommend emergency surgery for you. Insert a brain stent and allow all excess gases to escape. The expulsion of all unwanted gaseous materials. Then you will be just fine. You will finally have eternal patience.

Quarter over quarter, as record profits accumulate and we continue to accumulate dust in our corner, I honestly don't mind receivership and just kill it off. Sick and tired of waiting for a solution.

Once again you seem to have out done yourself. You explain things in a way in which everyone can understand. Simple and to the point.

Thanks Vancmike for staying on subject.

As I have stated before, when it suits them, the govt claims the SPS was an investment. At other times that it's a loan. FnF sent their equity to the Treasury until stopped by the Fifth Circuit Enbanc. Since then the the Liquidation Preference has grown for each $ of earnings as per letter of agreement signed between Calabria and Mnuchin. When Fannie states "amounts attributable to Senior Preferred Stock" Fannie is signifying that the SPS is considered a loan.

Also, as I have repeatedly stated, if the SPS were a loan, it was paid back a decade ago. If it was an investment, then the corporations have always been capitalized, and there's been no need for the conservatorship.

Your post is exactly what they want

Delay

Delay

Delay

Until all the shareholders go away

Quarter over quarter, as record profits accumulate and we continue to accumulate dust in our corner, I honestly don't mind receivership and just kill it off. Sick and tired of waiting for a solution.

3 month list of Fannie share prices - from Yahoo
https://finance.yahoo.com/quote/FNMA/history?period1=1706667028&period2=1714525789

No, it went up every year.

From Fannie Mae 10K:

"The GSE Act authorizes FHFA to establish an annual assessment for regulated entities, including Fannie Mae, which is payable on a semi-annual basis (April and October), for FHFA’s costs and expenses, as well as to maintain FHFA’s working capital. We recognized FHFA assessment fees, which are recorded in “Other administrative expenses” in our consolidated statements of operations and comprehensive income, of $159 million, $132 million and $140 million for the years ended December 31, 2023, 2022 and 2021, respectively."

Appears Calabria might have been trimming the fat at FHFA before he got fired.

My belief (backed by FHFA arguments in court and agreed by some court rulings) was that while they are in conservatorship, shareholder rights were transferred to FHFA. The tolling would begin once they were released and shareholder rights restored. However, during the Collins Hearing, one of the justices mentioned that every citizen has a right to file suit for takings. I wonder if the SCOTUS ruling in July 2022 would be the date when tolling begins.

I do miss the old GSE site where all the court cases were maintained. It was so easy to pull up the cases and cite the courts agreeing with FHFA.

Each state has it's own exceptions to tolling. One in common is minors. For them tolling begins when they reach the age of 18. Attaching an article that looks like it applies to us.

https://www.jdsupra.com/legalnews/equitable-tolling-estopping-the-clock-73341/

"how does FNMA create net worth if all income is sent to the Treasury?"

They don't! That's the foundation of this whole scandal started 16 years ago.

Guido, Donotunderstand ask me about the status of limitations running out to file lawsuit.

The FHFA / Treasury continue to change the contract, letter agreement dated January 14, 2021, So, the Statute of Limitations are not up. PAGE 6 Liquidation Preference increases dollar for dollar for all the retained earnings of the enterprises. So, every time the contract is changed this pushes the status of limits out further in time.

https://home.treasury.gov/system/files/136/Executed-Letter-Agreement-for-Fannie-Mae.pdf

Somehow we need to take in to consideration the recommendation of our friend Barron.

Quote: “ “Little Tucker Act” lawsuit for illegal exaction against the Treasury Department for money losses of less than $10,000 in my local district court. The purpose of this legal action is to introduce violations of the Charter Act and the Federal Enterprises Financial Safety and Soundness act of 1992 both as amended by HERA. Notice that FHFA will not be named as defendant. Relief sought is to enforce the provisions of the SPSPA that require the agreement be terminated and declared null and void if the agreement is found by a competent court of jurisdiction to be in violation of the GSE charter documents. Should this argument fail, a second prayer for relief will seek to force the consolidation of the enterprises onto the nations balance sheet due to violations of the GAO act and violations of the 14th amendment debt clause. At this time, money damages would be limited to court costs and Statute of limitations would rely on DOJ guidance for recurring claims due to material changes introduced in the letter agreements. For example the new increase of liquidation preference for free introduced within the last 6-years.” End of Quote

Any suggestions or comments?

Thanks Vancmike for staying on subject.

As I have stated before, when it suits them, the govt claims the SPS was an investment. At other times that it's a loan. FnF sent their equity to the Treasury until stopped by the Fifth Circuit Enbanc. Since then the the Liquidation Preference has grown for each $ of earnings as per letter of agreement signed between Calabria and Mnuchin. When Fannie states "amounts attributable to Senior Preferred Stock" Fannie is signifying that the SPS is considered a loan.

Also, as I have repeatedly stated, if the SPS were a loan, it was paid back a decade ago. If it was an investment, then the corporations have always been capitalized, and there's been no need for the conservatorship.

bwahahah oh god man this board is funny!!!

Rick, I wish I had that kind of influence.

For all you accounting knowledgeable people, (I have a basic understanding), how does FNMA create net worth if all income is sent to the Treasury?

Inquiring minds want to know.

Good bye gains from yesterday. It was nice to meet you.

Income v Revenue v Profit

When all the dust (expenses) settle - F and F have been making profit

That profit - as cash - is kept - it does not go anywhere

BUT an obligation - an IOU - is created - $ for $ - that is given to Treasury (this smoke and mirrors is Mnuchin)

The more our capital base grows - the more we owe the Treasury in LP measuring value of senior preferred paper

That paper - obligation if one prefers - should be declared to be ZERO for the 300B cash sent to Treasury (Gov argues the 110B over "investment is 15 years of dividend and or interest - which is legit but they must kill the SP - and brag about the 100B profit for us to be free)

YES

I wish I had font 100

YES

Celebrating Fair Housing Month: Honoring Progress and Commitment
https://www.fhfa.gov//Media/Blog/Pages/Celebrating-Fair-Housing-Month-Honoring-Progress-and-Commitment.aspx

Celebrating? Gimme a BRAKE so i can stop laughing

It will NOT be a 10 cent down day, today

Umm excuse me I think your post made the price drop even more.

you think? how? every penny made is swept to spsa. what may happen if they bring back a 5 year old like caalabra who raises capital required to 5% and keep hiding stress test as he did? the problem is they can do whatever they want as a conservator and regulator. whatever happened to the cfpb case that may potentially resolve this? whatever happened to the libor money? it almost seems like the solution may come from a place that no one anticipated (if) and with no timeline. no one knows considering they are fighting unanimous jury verdict. unbelievable right?

Keep up The Fight
Fight for what is Right
Fight to Right the Wrongs done to Shareholders

That's the plan.

From the Condensed Consolidated Statements of Operations and Comprehensive Income:

"Dividends distributed or amounts attributable to senior preferred stock (4,324) $ millions"

It appears all income was sent to the Treasury

Questions:
1. Wasn't the sweep suspended until a certain capital level was reached?
2. What is FNMA's capital requirement?

The Door is Open -
Low Volume Today
means the door is open for
new investors to LOAD UP...
you won't regret it - this is an opportunity
seldom seen for FNMA and FMCC - Pack 'em in quick

Chicago PMI is destroying markets today, its all relevant with the Fed Decision tomorrow. day before and day after are never the same. GSEs are for you and me, holding up nicely today.