Fannie Mae (QB) (FNMAK) Quote

Really going out on a limb there. I say it will be up or down or unchanged 😊

Oh wow. I would prefer more but beggars cannot be choosers.

My Prediction for Tomorrow for Fannie and Freddie Commons:

Freddie Up 2 - 4 cents
Fannie Up 2 - 6 cents

Will the Lameazz judge do his f'n job, for the past 2 years, he dragged his results to Halloween. It's been over 60 days and still no sight of this ostrich.
WTH is wrong with the whole judicial process, stick him in a retirement home and replace him with AI.

FNMA

Are we up 10 cents Monday due to the assassination attempt?

Somehow govt will probably steal more

Will the lawsuits ever end if they do?

Will gse’s ever be free?

Will we ever get dividends?

So many questions, but the questions are
meaningless without this ending

Ace Quote: 2.5% and release and make the GSE pay a fee for the backstop”…

As I said, To get the price per share to reflect such value the Treasury must cancel the net worth sweep, deem the senior preferred stock paid, eliminate Treasury’s liquidation preference, and replace the excessive capital requirement.

At 2.5 % Fannie Mae looks to me the company has enough capital now to be released no need for a government explicit backstop which will require Congress to change the Charter Act I believe will not happen.

Correct me if I’m wrong calculating the capital requirement at 2.5% of Fannie’s guaranty book of business the company reported $3.6 Trillion 2.5% is approximately $90 billion dollars. Fannie reported in the same 2nd quarter of 2024 10Q Net Worth of $86 billion. I will venture to say by this time into this current quarter the company is over $90 billion to meet the capital requirement at $2.5%. If not this quarter the next quarter for sure. The company has the capital now.

All the nonsense on valuations of what the government can get should STOP now! They do NOT deserve a penny more than they have already taken. If the government is not willing to return the couple hundred billion they have already swiped the warrants, the liquidation prefererence and the senior preferred shares should all be considered gone. We take capital we have now, build through the end of the year, lower the capital requirements to a realistic level then potentially let other new shareholders grab a stake which does NOT destroy current shareholders. The increased efficiency of FnF, plus the new business model - insurere of mortgages, plus no more heavy mortgage portfolio baggage should be enough for new and current investors to see a stock that's easily over $100 per share when it is at full strength in the future ... we can all argue as to when that is exactly but that is beside the point for now ...

anchor babies

do you really --- seriously - want to change the constitution such that those born in this country are not citizens ? On its face that does not seem fruitful. And once --- once we start to say you are not really a citizen even if born here -- where does it stop ? Would disabled babies be next to not be allowed to be citizens at birth? Maybe babies to all those with legitimate green cards working towards citizenship -- their babies are only 50% citizens even if born here

We need a TON more immigration agents and COURTS AND JUDGES (for asylum seekers in particular) ---- and to control crazy immigration that will get worse and worse with climate change ------ but that is not - not - helping anyone over the next decade buy groceries for less or ? (Indeed - we ALL know that it is immigrants without papers that work for insanely low wages in our restaurants and hotels and all over the place - keeping things affordable by accepting such shit work for shit pay). They are not buying up our homes or renting in places you want to rent. And they do not impact F and F conservatorship - the do not cause it or cure it.

bluntly - give me specifics on how MAGA has actually helped you ---- lets assume you are a single middle income worker at 50K a year or 100K a year working family
How is your education better
How is your health better
How are your roads better - your bridges -
How are you better off if you work in a factory

(Keep in mind a POTUS has near zero impact - seriously agreed to by R and D for centuries - on inflation)

note - I start with there is a limit - a clear limit on what ANY POTUS can do !!!

YET ---- We have seen some seriously large things - that are not taken for granted

Vietnam War and good and bad wars

Voting Rights Act and Civil Rights Act (women had just about no rights either)

Medicare - a socialist type repair to the capitalist society since a > 65 Year old population can not be insured by private companies for health insurance. FOR sure such a population - sick and old - can not be health services insured with private companies competing with each other. That lead to DIFFERENT impossible to understand benefits - out of pocket limits - denials of coverage - crazy high max out of pocket limits - (not to forget that private competition in the > 65 market would then become who do we NOT insure to keep our costs as an insurance company down - and those over say 75 would basically be without insurance)

Social Security - a socialist type repair to the capitalist society since the elderly on average have saved SQAT for retirement and for 70 years have not died while still working (under 65 years of age). As people started to live 10 and 20 and more years after they could work productively --- it was Social Security alone that keep scores of millions of elderly out of abject poverty and supported a good middle income life for scored of millions more (And until now - other than the first 15 years or so --- it has been paid in advance by workers themselves (to include the current tax on benefits which goes back into the TRUST fund for future generations!!!)

AND To stay to topic - despite the mistakes of authors about potential current talks about F and F ------ FNMA was started as a 100% Federal Agency to rationalize the live in
your own private house financing market and to provide liquidity and stayed that way for years and decades !! Before FNMA - most loans on homes were 5 or 10 year balloon loans of the type that EXPOLODED on home owners in the Depression (i.e. they did not cover 80% of a house - more like 50% - THINK TERM insurance - if you held that mortgage and paid for 8 years on a 10 year mortgage and could not keep up payment -- the house was sold for nickels and dimes at auction or grabbed by the bank. By having GOV involvement (the GOV taking on the risk of default !!) Banks could issue more and longer term mortgages and the 30 year declining balance mortgage loan was invented and became prevalent. The average life of such 30 year mortgage loans because of house sales and refinancing -- 7-10 years but by amortizing principal over 30 years ---- homes became affordable. to a super larger portion of the population ! Again --- this was GOVERNMENT intervention - sort of behind and supporting private banks. A democratic capitalistic system fix to keep democracy and capitalism and allow the growth of home ownership by more and more workers

And all of this was occurring while immigration allowed the United States to maintain and enviable lower average age work force and thus lead the world in increased productivity, GDP, and innovation. Every legitimate economic study of the role of immigrants in our economy finds they are positive. Remember - in the east coast, at turn of 20th century, there was massive hatred of the Catholic Irish immigrants and Catholic Italian immigrants. By 1924 - largely due to not understanding the value of immigrants and fear that was not warranted ----- the nation stopped allowing 99% of those who wanted to come to come in with the 1924 Immigration Act (Chinese and Asians were not allowed before). The main reason for so so so many people having grand parents that were legal immigrants is because there was no such thing as an illegal immigrant for most of the industrial revolution in the USA

I can live with $45 - and assume GOV keeps the CASH from gaining shares via Warrants and selling those shares OVER TIME to reduce deficits and debt

Rotting?

THANKS Rodney. Great insight on prices per share.
It comes at a time when 55 days out from the election that this story was released gives us a clue. They mention that 2 of the largest holders of common and JPS are involved or connected to the group having the meetings. It seems they are really getting started on plans for a quick release rather than wait until after they put out the DUMPSTER FIRE oof the last 3 years. Maybe they see it as a way to raise money $$ for there pet projects and bypass congress.

Now this is greedy Government here they will want some $$$ to fund there pet projects so my gut is they will cash in the warrants and cancel the SPSA and lower the requirement ( retained earnings) to 2.5% and release and make the GSE pay a fee for the backstop.

I don't see them converting the JPS, it would be easier and less of a law suit issue by shareholders to leave then as JPS because you don't want to Piss off your donors !!

You said:
A ship is safe in port but that is not what ships are built for,,,it should be:
A ship is safe in port but that is not for what ships are built.

Ok not completely disagreeing with you regarding the top 1%.

But I’m looking at it from another perspective. You talk about better schools, roads,….. we can achieve that without inviting all the illegals and the baby anchors coming in to partake in things that they never paid taxes on. Schools in California are down the drain due to DEI hiring. Pretty soon our kids will speak English either with Asian accent or Hispanic accent because that’s their teachers in public schools. Is it racist to want our kids to speak proper English? Is it so racist to want our parents to get the same Medicare as the illegal immigrants?

You say you want taxes on the top 1% but even so that money will be misused and I’ll still pay the same if not more. We need MAGA.

Oh wow. A ship is safe in port but that is not what ships are built for. Sail out to sea and do new things.

You're making some good strikes on
the head of the nail!

we are into 8th year since last plan by calabria and mnuchin. could it be another 8 years ? and another 8.
wonder if mnuchin with his gs cronies is contemplating making money of an ipo and fok up existing holders and all the new ones get everything like the ones he mingled in middle east with his urgent trip there when country needed him here?
also, if paulson becomes secretary, will he not have to sell all his preferreds ? that would be a disaster for the kite man .
don't fall for these lolipops. why these wsj articles now closer to the election? it sounds like to get your votes and nothing else.

"Former Trump administration figures and bankers" ? ? ? ?
Jail 'em All
They Are All Tools Greater Forces.
One of Which Is Incompetence.

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.


The key phrase says quote " should Trump win the presidential election"

In other words if trump will win the presidential election, then Trump will put this plans on ending conservatorship to work.

Jail Mnuchin - Jail Calabria - Jail Mel Watts -
Jail All Fannie and Freddie Directors and Officers Who Have and/or Now Making, Arguably, or Acquiescing to Decisions Made by The FHFA or Any Other Persons or Entities That, Arguably, Have Been Harmful to Any Fannie or Freddie Shareholder - Reparations Should Be Made Based on When The Shareholder Purchased Their Equities (From Owning Before C-Ship and/or After Imposition of The Net Worth Sweep.

how did it work out with calabria and mnuchin? there lies your answer. you may have to wait another 4 years. who knows.

FNMA/FMCC
Fight The Lying - Fight The Corruption - Fight The Theft, The Swindle, The Fraud
Fight To Right The Wrongs Done to Fannie and Freddie Shareholders
Fire Yellen - Fire FHFA Director
Fire Anyone That Has Made, or Is Now Making Decisions
That Arguably Have or are Now Harming Shareholders From 1 Year
Before Imposition of Conservatorship To The Present Time
Demand Repairs Be Made Shareholders

Ace, to add comments to the last post.

The article by the Wall Street Journal published the government’s stake in the GSE’s could be maximized into several hundred billion. The below calculation is how it can happen with Fannie. Freddie Mac is an additional contributor.

Fully diluted by the warrants at 79.9 percent adds a total of 5,761,629,686 shares outstanding…

$18.8 billion net income per year / 5,761,629,686 = $3.26 per share of earnings,

PE Ratio of 14 x $3.26 = $45.64 per share intrinsic value.

5,761,629,686 multiplied by $45.64 = $262,960,778,869

This is how the Treasury maximizes interest by 2 hundred billion at 79.9% and the remaining $53 billion at 20.1 % to the existing shareholders.

Just to remind every investor the above is stealing!

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).

Our ForeFathers never intended for our government to operate as for profit.

YES

that is what I want ---- for whatever motive for whatever reason !!!

let warrants be used and dilute us to 20% off an 80-100 per share company (20-25 dollars a share)
kill - kill - kill the 200B suffocating our reserves and preventing maximum PPS on selling Warrant created shares

i.e. kill the SP/LP and warrant created shares trade at somewhere between 80-100 --- and our shares go for the SAME ride (if if if the SP/LP is wiped out)

HOW do they make big money
By making sure we get squat

You are just one inch from understanding the more often and the closer you read that stuff

1. My answer - no one knows !! no one knows what is happening - no one knows exactly what is being discussed - AND NO ONE KNOWS what happens to us 1B shares

2. The easiest way for the NEW (stress on NEW) players and their money is to give them nearly 100% ownership and dilute us to 1%

what holdings !!

seriously - at this point in time - we currently own 100% of F and F

Gov has SP paper

I suggest that 9 out of 10 times the people who write about PRIVATE GSEs have zero idea what that really means

For example - What would the GOV actually sell -- other than maybe exercised Warrants? Again - GOV has no common equity

yes
much can be done without congress
as you know - my favorite is kill the 200B SP/LP on the books obligation (which is more than the NWS at max differential - I think)

but the below IMO - is incomplete as it combines some imputed motive with the key outcome ----- equity for original owners

one wants gse's for social benefit (IMO this can be done with a private (equity to us) company - using a FED utility model - we win (if nationalized we lose)

while other wants to privatize them so it cannot be used for social benefit and misuse --- (IMO privatize can be done with massive dilution and new shares to the BIG key players)

I simply want my $20-$30 and F and F to continue to provide liquidity to the overall housing market with a tilt (about 5% in actual $ and 50% in PR) to those who are credit worthy but need a bit more help. This is possible under D and R --- but the public utility model is more likely under D and the robber baron (words chosen on purpose) NEW owners win more likely under R

Ace, Fannie and Freddie are cash generators! Absolutely no question of the value of the Earnings Power of the two companies business. To get the price per share to reflect such value the Treasury must cancel the net worth sweep, deem the senior preferred stock paid, eliminate Treasury’s liquidation preference, and replace the excessive capital requirement with a true risk-based requirement that allows Fannie and Freddie to price their credit guarantees on an economic basis. By lowering the capital requirements both companies will have retained enough capital now with no need of a secondary IPO. The two companies are not banks and should not be treated as banks requiring bank like capital. Realist the companies on the New York Stock Exchange. By doing this the Stock Price will soar. This is how huge returns on investment can be made even if the Treasury exercises the warrants. Note: the below calculation is Earnings Power only, what is not included is the over payment of the $301 billion sent to the Treasury. This over payment should be repaid to the companies.

Fannie Mae’s common stock outstanding 1,158,087,567

$18.8 billion net income / 1,158,087,567 = $16.23 per share of earnings,

PE Ratio of 14 x $16.23 = $227.22 per share intrinsic value.

With the WARRANTS: Fannie Mae’s common stock outstanding 1,158,087,567 diluted by the warrants at 79.9 percent adds a total of 5,761,629,686 shares outstanding…

$18.8 billion net income / 5,761,629,686 = $3.26 per share of earnings,

PE Ratio of 14 x $3.26 = $45.64 per share intrinsic value.

"Conservator" @FHFA first sent $301 billion of @FannieMae & @FreddieMac equity to @USTreasury . It's now giving away their future profits to POLITICAL DONORS!

If US isn't a🍌REPUBLIC...

END THE SWINDLE!
FREE FANNIE!
FREE FREDDIE! https://t.co/P8AYS732Ga— Guido da Costa Pereira (@GuidoPerei) September 15, 2024

Poll/Question:
How quickly do you expect the new administration to move forward with FnF release?

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

https://www.wsj.com/politics/policy/trump-allies-are-working-on-plans-to-privatize-fannie-and-freddie-a9c4e5ff

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
Bullish
Bullish

We need to win big time in November. We would seriously pop. Imagine if John Paulson becomes the next Treasury Secretary. We would pop to $10 overnight.

Better than roasting for the next decades

I've always believed that when it came time whoever was in the whitehouse would sell off the warrants to there buddies for providing campaign funds and endorsements.
So if 2 of the largest and closest to the deal would benefit from the warrants then would it make sense to cash in the SPSA and cancel the warrants??

Hopefully

Great find !! Lets breakdown some things and open up where this could go!

Ok so we have a few hedge fund guys involved and endorsed the DJT campaign. Sounds like the wheels are turing and prepearing for Jan 6th??
So Questions for the board:

If you have Hedge fund guys owning both common and JPS, then how are they going to make huge returns on there investments if the Gov cashs in the Warrants or SPSA ??

Anyone ????

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.

The copy and paste Kamala will now rush to claim, she had this idea all along.

FMCC - Why don't out lawyers file a motion for an Extraordinary Writ
to get Judge Lamberth to Release Our 8 - 0 Jury Verdict Award?
What are extraordinary writs?
A rare order issued by a higher court to grant relief not otherwise available, such as by reviewing an otherwise unappealable order, or by commanding a lower tribunal or official to take a certain action or to stop from taking a certain action.

Alzheimers patients can do whatever they want!

Let's wait for the eggs to hatch

Biden did cancel the student loans. So, he can surely release FNMA/FMCC.

Is this plan really good for the FNMA & FMCC share holders?

Say what ? Thompson is a lady ? I thought it was something that escaped from the zoo.

It doesn't seem to me that the prospect of releasing Fannie and Freddie is an important issue for voters in general. And also in my oponion, Trump won't win. But by NOT WINNING, it won't hurt our goals. Such as
Ending The Conseravorship
Making repairs to Investors that have been hurt by the Conservatorship;
As We Fight, Fight, Fight, Fight, Fight;
As we Fight to Make It Right; and
Fight to Right the Wrongs done to Shareholders

I think it’s unlikely but just because it didn’t happen in past doesn’t mean anything about future.

I think it’s unlikely but just because it didn’t happen in past doesn’t mean anything about future.

I like the 2 lines under the HEADING

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

(((((((((. including sovereign-wealth funds. ))))))))))


Could Buffet finely make a major stake in the twins?????? He's being cashing up and has over 288 billion in cash in hand?

It's a sign that DLT team is assembling groups to discuss what needs to be done with Fannie & Freddie ahead of Jan 6th. If these meetings have been taking place then Shareholders may finely get the release of Fannie & Freddie in 2026 with 2025 being the planing release year. Still it's a positive step foreward.

i feel like none of the parties have any clue. one wants gse's for social benefit while other wants to privatize them so it cannot be used for social benefit and misuse. poor shareholders who have been decimated are not part of this equation. bankers want to either misuse fannie freddie like they did in 2006 and 2007 or want to make ton of money in fees by an ipo.
once privatized,for sure, these evil guys will surely disappear. but privatization will require congress and it will never happen as we know.
what does not require congress and can be immediate is : cancel net worth sweep as it still exists, refund excess of sps that has been paid via nws and refund with interest, end c ship, cancel warrants .
i really don't care anymore. they will reap what they sow. galatians 6 also says 'don't be decieved' so be careful what you read, they are after your votes and not for your well being. be well.