Federal National Mortgage Association (PK) (FNMFM) News

It’s 100% to write down SPs, have you not been paying attention? Nothing the government does with this CS has been illegal. They haven’t even had to cough up 612 million by a unanimous jury. Warrants will be canceled and SPs will be written down. FnF doesn’t own a penny to anyone from tge 2008 big steal.

"Mnuchin told this to Calabria directly, then Calabria recounted it in his book. That isn't hearsay, it's reporting."

Again, I know you understand this concept and yet you refuse to acknowledge it. So yet again, I'll call you a hypocrite.

Reporting what was said on a phone call is in fact: HEARSAY.
Broadly speaking, hearsay is an out of court statement offered for the truth of the matter asserted. As such, it is generally inadmissible unless an exception or an exemption applies.

If a witness's memory of an event was previously captured in a written or recorded format (e.g., via notes, video, audio recordings), that may be used as hearsay evidence if the witness's memory of the event is fuzzy and the witness testifies that the recollection is accurate.

Reporting what Calabria recollects about a phone conversation from years ago is not in ANY WAY SHAPE OR FORM evidence that writing down the seniors is in fact illegal. It's not evidence of anything at all.

For the last time - because I'm not going to keep repeating myself - if you have evidence that writing down the SPS LP is illegal, please provide evidence of such. Otherwise, you repeating a quote from a book is.. by defintion... HEARSAY! I heard that it's illegal, therefore it must be illegal. :)

This post

Thank you

lol

Sorry KThomp, I must have missed this bucket of replies. I'm sure you've been anxiously waiting for my responses. :)

It's a slow post day, so good time to catch up.

"I think it's a 25% chance of none converted and all written down.
50% that all of it is converted.
25% that only the $193B worth of balance sheet SPS is written down and the rest is converted."

Thanks for sharing. Personally, I think this is a bit too simplistic. You are inferring the impact to common, but what happens to JPS in each scenario?

"whether or not this is possible isn't really the point. What matters is the probability estimate of whether or not it will happen. [...] Possibilities don't matter here, probabilities do."

For me... Planning for success means planning for both - probabilities and possibilities. In other words, based on your scenarios above, I can make money in any of them depending on what happens with the JPS in conjunction with the common. Having the right mix of JPS and Common means the only way I lose is if common goes to zero and JPS takes a haircut greater than 78.5%. I'm prepared for this possibility - I could lose my entire position. However, I am giving this a less than 20% probability of happening. Any other resolution puts me in the green - so in my mind, I'm 80% sure I'm in the money. It's just a matter of how green, and if it was worth the opportunity cost. If common goes to $2 and JPS gets 50%, I get a 3x return - far short of my goal for the amount of time vested. But it doesn't take much upward action to put me in the serious green. If your first scenario of all write-down happens, I'll be swimming in it.

Are you succinctly trolling him with that JB June question? Nice sneak like the 20$ Vegas hidden trick LOL

is that anywhere near correct?

and Bradford thinks JPS are guaranteed ?

if that deficit in capital is real --- and GOV will not wipe away 120B and allow a bunch more to be counted (and cut the required in half) --- then JPS is not different from common

And if the GOV does that stuff - both make money

So the reported capital is

82B

but there is an obligation on the SP to erase it

-120B (not sure if this is all the phantom IOUs?)

So Fannie is negative 38 -- but it can not count JPS for 19B and needs to adjust for 12B of deferred tax

So Fannie is negative say 70B --- is that your math?

And then FNMA needs a positive 188B ?

Correct the CBO report which assumes the warrants to be exercised had an implied value of approximately $ 110 bn. This valuation needs to be updated for the amount of retained earnings which have trended significantly higher than the CBO assumptions. The CBO report also assumed the SPSA would be written down at least partially. Some people believe that the warrants will be written down and the SPSA will be written down for good reasons. Lets wish the best for all shareholders - great news about the JPS trading well. Are you still expecting a JB event by the end of June?

Ahaaa!!! Now we know why you don't own commons

When calab and Mnuchcin are the chosen ones, if that happens we will believe you and accept you as our leader

Exactly WHAT needs to happen for folks to realize this is not going to amount to anything?

Fnmas hit 52 wk highs today, admittedly it is higher in the capital structure and a recent i bank report forecasted a scenario where they make money from current valuations. Spspa conversion kind of is the enemy for existing commons. Not sure if the solution here is to write that down to spend the warrant money, but the original cbo report had the spspa getting paid off face and the warrants being worth up to $110b. The recent ibank report did not seem to be very bullish for the existing commons. Mostly forecasted spspa taking a haircut at an 8x earnings valuation. Oof

Quotes aren't delayed for these pieces of trash. And even if they are it's probably due to apathy.

I'm sure they were illegals!

Makes sense. Furthermore all quotes are now 15 minutes delayed. And someone stole my whale horn. Clearly there is something strange weird abnormal going on around here.

Oh wow.

I just completed aerial reconnaissance mission.
It reveals a huge rush of new buyers so great
that you could understandably call it a STAMPEDE

Can someone throw us a bone or something ? Thanks so much.

7-2....Seven of these morons are in favor of an agency set up just to be a money sapping bureaucracy, much like another money sapping bureaucracy with which we all are familiar, FHFA. Between the two of them, several thousand people are "employed" doing repeat work of those they are supposed to be regulating.

Several things to consider. First, the GSE's won't be released any time soon, if ever. Second, the commercial crash will happen no matter what, and the GSE's play or played no significant role in either. The commercial crash that's coming is the result of the same driving factors in the residential affordability crisis.

The Supreme collapses One More Time

These clowns are getting used to hiding under a desk instead of doing there jobs !

CFPB case

https://news.bloomberglaw.com/us-law-week/cfpbs-funding-system-upheld-by-us-supreme-court-in-biden-win

Crappy day.

Thank you
On the run but thank you and will be back to read

FYI -- not sure what page you left the PDF (link) at - but it opens to page 23 of the PDF ---- miles from 105

(and as always - just for the fun of it ---- the PDF counter (I use to search a page number) shows the DOC page 105 is PDF page 108

but - I see note 15 !!! and Thank you

I do want to better understand capital - when used to discuss F and F (witch cash reserves/capital that have for a large amount - offsetting IOUs ))

Only saw two lines - rest is blocked
but of course that is bull !!!!

it will reduce costs for homeowners

And there is zero added risk --- and likely less risk as F and F can not be as mean and ruthless as the banks were in kicking home owners out (to include the Bank MNUCHIN ran pre appointment - notorious reputation as I recall for rapid and forceful foreclosures )

and remember that time - 2008ish - is when we learned the industry tracking system on who held the real most recent deed was CRAP (and we had dozen years of banks selling mortgages to other banks to get YEAR ONE servicing fees at 2X later years - they swape them like baseball cards at a swap meet!)

"can you specify the DOCUMENT page you are using"

Page 105... I wrote in the post.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174489275

Form 10 Q For the quarterly period ended March 31, 2024

Note 15: Regulatory Capital Requirements

https://www.fanniemae.com/media/51196/display

https://www.housingwire.com/articles/republicans-tell-fhfa-they-oppose-freddie-macs-closed-end-second-mortgage-proposal/

As you said, and you are right: "Statutory prohibitions, as a compensation with SPS is considered a capital distribution restricted." - So, tell me with the amount of money the companies have sent to the Treasury why the continued conservatorship?

Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee on a line of credit to be paid by the Enterprise. The United States prohibition on assessment or collection of fee or charge to Fannie Mae, (section 304 Fee Limitation). Only Federal Reserve Banks are authorized to be reimbursed of fees, (section 309).

SEC. 304. SECONDARY MARKET OPERATION

Fee Limitation

Quote: “(f) PROHIBITION ON ASSESSMENT OR COLLECTION OF FEE OR CHARGE BY UNITED STATES.—Except for fees paid pursuant to section 309(g) of this Act and assessments pursuant to section 1316 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, no fee or charge may be assessed or collected by the United States (including any executive department, agency, or independent establishment of the United States) on or with regard to the purchase, acquisition, sale, pledge, issuance, guarantee, or redemption of any mortgage, asset, obligation, trust certificate of beneficial interest, or other security by the corporation. No provision of this subsection shall affect the purchase of any obligation by the Secretary of the Treasury pursuant to subsection (c) of this section.” End of Quote. Page 16

Only Federal Reserve Banks are authorized to be reimbursed of fees, (section 309).

SEC. 309. GENERAL POWERS OF GOVERNMENT NATIONAL MORTGAGE ASSOCIATION AND FEDERAL NATIONAL MORTGAGE ASSOCIATION

Federal Reserve Banks to Act as Fiscal Agents (Fannie Mae and GNMA)

Quote: “(g) DEPOSITARIES, CUSTODIANS, AND FISCAL AGENTS.—The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for each of the bodies corporate named in section 302(a)(2), for its own account or as fiduciary, and such banks shall be reimbursed for such services in such manner as may be agreed upon; and each of such bodies corporate may itself act in such capacities, for its own account or as fiduciary, and for the account of others.” End of Quote. Page 29


Link:

FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT
As amended through July 25, 2019

link: https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/aboutus/pdf/fm-amended-charter.pdf

i think all he is arguing for is the audited balance sheet.

Collins screwed everything up. If not for collins Cala ria would still have been Director.

Instead of retaining earnings, you want FnF to increase the SPS LP for free and then, convert these SPS to common stocks, so that FnF post the Retained Earnings that they should have posted in the first place for the rehabilitation of FnF at that point in time, and with your stance, it's posted a lower amount because they would have to pay Income Tax, as it's a debenture (SPS, obligations in respect of Capital Stock) that disappears.

In this image, you see the step 1 (Net Worth increase = Net Income + OCI are Tier 1 Capital) and the step 2 (the effect of the SPS LP increased for free on the Net Worth). You want a step 3 to return to the step 1 (Retained Earnings is Tier 1 Capital).


Let alone all the statutory prohibitions, as a compensation with SPS is considered a capital distribution, restricted. Besides a breach of the FHFA-C's Rehab power, that refers to Rehabilitate FnF with the initial action, not a breach and then, years later try to rehabilitate FnF.

Your stance is beyond shenanigans.
Everything is unwound and the reality is that the FHFA used its Incidental Power for this joke: "Zing!".
Humiliating indeed.

JPS are redeemed, like SPS, not converted to Commons.

And where do you think those 100's of billions will come from? a unicorn's butt?

The Supreme Court required the "rehabilitation of FnF", adding "in a way, although not in the interests of FnF (awful ERCF tables), it's beneficial to (the written text states "in the best interests of") the FHFA", with the add-on "...and the public it serves", for the utilization of FnF for public policies.


Corroborated by judge Willett in the prior ruling over the same case, with "any action within the enumerated powers", which refers to the power of Rehabilitation, without saying it. This is why it was a half-baked ruling, synced-in with Justice Alito that finally said it: "Rehabilitate FnF": (may) put FnF in a sound and solvent condition", were "may" doesn't mean that the conservator is excused from complying once the capital has been generated (Legal dictionary), but about activities that make them take on more credit risk or bear losses, as explained by Freddie Mac here.


This is what the Restriction on Capital Distributions is for. A statutory provision covered up by the parties from the onset, in a clear case of collusion.

Justice Alito saw more his desire to peddle the hedge funds' Govt theft story, rather than what he was required, read the text, because there is no "monetary benefit" possible, as someone might think of with his opinion, in a regulatory agency, with respect to the entities it oversees, by any stretch of the imagination.
It's the benefit of a Separate Account plan and enjoy the pleasure of watching their Equity holders saddled with losses with their stocks trading at rock bottom prices (the stocks' fair value), and fighting against the assault attempt on the ownership by the holders of Preferred Stocks.


MAKE NO MISTAKE, the rehabilitation of FnF and actions authorized by this section, in the best interests of the Agency, go together at the same time.

You cannot take actions in the best interests of the Agency (10% and NWS dividends, and nowadays SPS LP increased for free) and then, 15 years later, claim that it's when you will "rehabilitate FnF" with the write down of the SPS that show up on the balance sheet, and the conversion to common stocks of the ones increased for free that are illegally absent from the balance sheet, which is what the government attorney, Mr. khtomp19, says in the comment that I'm replying to.
that writedown really would increase CET1/Tier 1/core capital by $193B.
I do think this is a viable path forward because it would allow FnF's retained earnings account to accurately reflect the reality of the company's health.
...and convert the off balance sheet LP into just as many commons as if they had converted the whole lot.
The reality of the company's health must be restored on a daily basis, both building up capital and with the reduction of the SPS, obligations that must be redeemed for cash, not increased for free out of the blue, because you wouldn't be rehabilitating FnF, measured in financial companies with the capital levels, not with the Net Worth.


Finally, the attorney Hamish Hume has a lot of explaining to do, for the voluntary dismissal of the Wazee case on May 22nd, and thus, refusing to file the scheduled appeal on May 24th, as seen in this image:

A case that, for the first time, challenged the ongoing Common Equity Sweep with the SPS LP increased for free every quarter. You cannot rehabilitate a company increasing the SPS LP of the government for free, in the same amount as the Net Worth increase.
Another capital distribution, restricted.
Remember: rehabilitate FnF and in the best interests of FHFA has to happen at the same time, otherwise it's NOT authorized by this section once the capital was generated.
What Justice Alito authorized, is a Separate Account plan. Hence the "not in the best interests of FnF" on paper (ERCF tables).

JPS are redeemed, like SPS, not converted to Commons.
This is the chart of a Non-Cumulative dividend JPS with the dividend suspended, assuming that Fannie Mae fetched the threshold 25% of Prescribed Capital Buffer for the dividend resumption (Table 8: Payout ratio), with the 3Q2022 Earnings report.
It's been estimated a 6% annual discount rate because this is what the market would have demanded.
Freddie Mac, one year earlier.
Nowadays, in overtime (Conservator Risk: "Take any action authorized by this section, in the best interests of the Agency". FHFA-C's Incidental Power) with the expulsion of the unwanted members (AT1 capital instruments holders -JPS), in time for the announcement of a Privatized Housing Finance System revamp chosen for the release by the UST in 2011, at the request of the Dodd-Frank law, which is only possible when CET1 > 2.5% of ATA, in accordance with the law and Finance (Separate Account plan).

Good luck. Keep wishing for it. You may get it. Idk. Im not betting on it

I hope the GSEs are released sooner than later. The commercial real estate crash is going to hit soon and harder than the past 2008 residential crash.
Out of all the govrats, Cat man did advance the agenda. No one did squat beforehand.
I do wear a hat, to keep the sun away from my receding hairline and bald spot. Lol
I have to deal with J rats, the most debt on the planet. No where to hide from the gov debt kitting, they sell t bills and rebuy them, rinse and repeat.
Crossing my fingers and toes we get substantial gse news.
Fnma

Show the World you're Patriotic
by Loading up on FNMA and FMCC

Good Luck to all of us

I would suggest - and you likely know - that at this point the F and F JPS are a capital gain play.

If we all win - then we should expect that as JPS* become worth $25 (or an 'offer' for 50% or 75% comes) that dividends will be stopped and the paper (JPS) called in by F and F or whatever the name is then

*note if JPS get to $25 or some solid number - I also assume FNMA and FMCC will be providing a good capital gain from today's price - likely even better yet

Can't get one over on you...you is sharp

Expect more Red, this Pom Pom is offer !

When your retired time doesn't matter ! Will in time fannie and freddie be released come Nov 5th? What's the plan going to be in time? I have all the time in the world as I'm retired !

MRJ

I agree the NWS sucked

but the big action remains the STEAL by Bush and Paulson and SCOTUS denying us any rights

The NWS was salt in the wound ---- but had there been no WOUND --- there would be no NWS

I say that as it is what i believe AND a defender or BO ----- (but a defender who does say (100 times by now) the NWS was 100% a complete Taking)

I have no idea who of JOE and DJT might free us
No real idea

But it bugs me no end when we had 4 years of nothing and even negative (re capital level) under DJT - why those who otherwise love DJT keep saying he is good for us

There simply is no such proof (other than some words early in his admin - positive words but that became a report - policy that includes the option of closing them down; and a letter very supportive but a letter to one Senator after he was out of office and talking about common stock the GOV owned - so IMO a joke)

but - I think the answer - life with value or death - is an Executive Branch action

You still 47?

CORRECTION in yesterday's comment: WAZEE CASE. The DOJ wanted Sandra Thompson in, not out as Defendant.
It uses same wording of the Rule 25, which is all messed up.
It doesn't change the point: blame Calabria.
CORRECTION(WAZEE):@TheJusticeDept WANTED ST IN
Same Rule25 wording "the successor is substituted"?
"Automatically" 2yrs later(It proves the point: Blame Calabria)
Last-minute substitution once the DOJ was told "no appeal" soon.
And
Blame DeMarco: ST dismissed(Lamberth)#Fanniegate https://t.co/f2gVswLo9g— Conservatives against Trump (@CarlosVignote) May 27, 2024

Yikes! The "cash guy" that invented the concept "cash Equity", better known by the corrupt attorneys as "Hi Rum!" in private emails, strikes again.
He is happy that FnF get to keep the cash with the SPS LP increased for free, so they can make investments, notwithstanding that FnF have $8 Trillion in MBS (a MBS is called "investment in a mortgage") with the cash provided by the MBS investors.
They have also tonnes of cash for Liquidity in their Contingency Portfolios ($129B in Freddie Mac and $120B in Fannie Mae, as of end of March 2024), with investments in debt securities among their "Eligible Assets", like Treasuries, valued at fair value, not like the battered banks with their HTM portfolios, enabled by their imprudent Regulators.
Additionally, other Eligible Assets in their mortgage-related investments portfolios (investments in Agency MBSs).

All that matters is the effect in Equity or Net Worth. That's our wealth in a company.
And if you read "Common Equity Sweep", you should be worried, because "Common Equity" is the portion of the Net Worth that belongs to the common shareholders, and CET1 is what is required for the recapitalization (rehabilitation in a financial company: restore to a sound and solvent condition).
Only real difference is... the companies keep and are able to reinvest the earnings and in this interest rate environment is worth something.
This isn't about "greed". Each stock class has its role and risks, which has been exacerbated by Regulatory Risk, unrelated to the Conservatorship, with a capital requirement that has spiked from 0.45% of the MBS Trusts (off-balance sheet obligations) to 2.5%.
Conservator Risk in the last phase, when the FHFA sought to expel the unwanted members (AT1 Capital instruments like the JPS) like occurred with the FHLBanks in a 2016 Final Rule, and it's waiting for the release, not just with CET1 > 2.5% of ATA, but also it aims to comply with 25% of Capital Buffer for the resumption of dividend payments (Table 8) in time for the announcement of the Privatized Housing Finance System that the UST recommended for the release in a 2011 Report to Congress.
This is why we have waited for the 1Q2024 Earnings reports and the laggard Fannie Mae (Separate Account plan: illegal CRT expenses, net, and PLMBS settlement, included)

If you don't like it, like the UST backup of FnF as a last resort "at rates that take into consideration the Treasury yields as of the end of the month preceding the purchase", or investments in Non-Cumulative dividend JPS, the Charter is revoked and you don't buy JPS anymore in the future. But until then, don't try to change the current status with multiple cover-ups and abuse of court process, because that's a felony and we will request $4.8B in Punitive Damages, and everything will be unwound (The Lamberth rebate, etc.)
when greed got in the way
The Conservatorship cannot be extended just because there are investors that don't want to reckon the risks mentioned, and they rather see their dividend suspended in the hands of the Government, instead of being kept by FnF for the recapitalization, as always, and spending all day sending messages to the common shareholders: "Thanks for sharing", when that's impossible because each share class has its stock valuation, or "The government be appropriately compensated" (Mnuchin), when the Charter Act prohibits additional fees or charges, other than the rate on SPS mentioned before.

If you have been sent to the Freddie Mac board, take all your aliases with you.

This is why the UST recommended the Basel-framework for capital requirements, for the release from conservatorship, in its 2011 Report to Congress at the request of the Dodd-Frank law.


It required guarantee fee increases that reflect their risk, so that FnF can be held to the same capital standards as the banks. Thus, don't depend anymore on the UST backup of FnF in the Charter Act.
15 years in the making.
Don't worry about the release.
You should worry about the corrupt Plaintiffs and Co that want to deplete capital in FnF with the 10% and NWS dividends, the SPS LP increases for free, etc.
I think it would be more accurate to say that they cannot assess the economic consequences for the housing market and the economy in general if they release the twins.

I own a huge amount of Freddie $50 JPS and Fannie $25 saving them for dividend payments into my retirement later years and when / if released ! My freddie commons are a wild card play, I own more of those than JPS and have flipped them a couple of times but holding tight for a run up to Nov and into 2025 see what happens. That's my game plan everyone has there own! Trade accordly ! Happy to see everyone make a ton of $$ if they ever get released !

Yes, the government behaved like a bunch of crooks and it got worse when Geithner/Obama implemented the NWS.
If the NWS has not happened we would be released already.

Yes - several billion dollars of JPS were sold - I bought FNMAT at $ 25. The Growth Fund of America bought more. No disclosure by the UST - this memo was not public until 2013 or so as the FCIC Commission records were made public. The NEC and UST knew that this was going on all along and duped the Senate Banking Committee including Calabria that they were dealing fair. Also - they let Wall Street sell Billions to unknowing JPS investors.

i have to agree with you. i do wonder paulson, corker, demarco, alito, calabria , mnuchin who foked this, belonged where? and if they just hate these two companies philosophically that has saved our economy over and over again and still making money hand and fist?
there is optimism here only because lael has already declared that current admin isn't doing anything, so that road is closed. so can't blame everyone to look on the other side, right or wrong. they are hoping, hoping that it will happen this time. may be proved wrong. interesting that he says courts, judges, cases are all rigged but when it comes to gse's , he doesn't? the politicians are adept in making money for themselves in stock market (pelosi, djt stock, buzzfeed, mnuchin on ny bank, crypto and so on...) but when it comes to taking away hard earned retirement and 529 that has all been taken away , $1500 down to $0.40 over last 16 years, with many dead without seeing a penny. nada.