Luke 532

Thank you. I always appreciate your input.

What do you think is a reasonable expectation as to when that might happen? Thanks.

Calabria also teased that an announcement on @FHFA's capital standards rule could come "in the next couple weeks." Whether the rule is finalized or re-proposed is critical to the #GSE reform timeline.

Calabria: "I should be able to announce within the next couple weeks whether we are going to re-propose" the capital rule.

The latest from Layton... Housing Finance Reform: Down to Two Models, Both Built on the GSEs https://www.jchs.harvard.edu/blog/housing-finance-reform-down-to-two-models-both-built-on-the-gses/

Audio recording: http://media-oa.ca8.uscourts.gov/OAaudio/2019/10/182506.MP3

Tomorrow...

Calabria hopes to have adviser in place by November. Attached...

Live event going on now at GMU (Fairfax, VA... about an hour outside of Washington, DC). In discussion at @MasonLEC, @FHFA Director @MarkCalabria publicly indicated #GSEs could leave conservatorship before hitting top capital threshold and operate under consent decree.

Thank you. What is the source for this? Bloomberg

Interesting American Banker article out today by Hannah Lang: https://www.americanbanker.com/news/fannie-and-freddie-get-to-keep-their-earnings-now-what

ACG's take... Hiring an FA gives @FHFA and Administration non-political backing to act on recommendations from @USTreasury report. https://t.co/oB2sJsyi3A #GSEs

Financial Advisor, attached... FHFA-Statement-of-Work-10042019.pdf

Maybe October 22nd. Attached.

Bloodbath! Congrats to those that don't yet have a full position and can buy more.

+1

Pagliara today: https://www.forbes.com/sites/timpagliara/2019/10/01/america-is-about-to-do-the-right-thing-in-housing-finance-reform-we-have-tried-everything-else/

Calabria wrote an opinion piece today: https://www.cincinnati.com/story/opinion/2019/09/30/opinion-future-affordable-housing-depends-finance-reform/2423345001/

What does everybody think the odds are of this getting done in the month of October? Thanks in advance for replies.

For those that want a link to FHFA's press release: https://www.fhfa.gov/Media/PublicAffairs/Pages/Statement-from-FHFA-Director-Mark-Calabria-on-Letter-Agreement-with-Treasury-to-Increase-Fannie-Freddie-Capital-Retention.aspx “The Enterprises are leveraged nearly 1,000-to-one, ensuring they would fail during an economic downturn – exposing taxpayers once again. This letter agreement between Treasury and FHFA, which allows the Enterprises to retain capital of up to $45 billion combined, is an important milestone on the path to reform,” said FHFA Director Mark Calabria. “FHFA commits to working with Treasury in the coming months to amend the share agreements and further advance broader housing finance reform. These reform goals include limiting the government’s role in housing finance, increasing marketplace competition, focusing on affordable housing, and sustainable homeownership. The status quo is not an option. Now is the time to act.”

Fannie, Freddie Permitted to Boost Capital Cushions by Billions https://www.bloomberg.com/news/articles/2019-09-30/fannie-freddie-permitted-to-boost-capital-cushions-by-billions -Fannie allowed to hold $25 bln, and Freddie can retain $20 bln -Treasury, FHFA announcement part of effort to end U.S. control

Was this from a previous Sunday? If so, my mistake. If not, then perhaps something leaked to WSJ. Yeah last Sunday Luke. Not to worry. Doh! Sorry, y'all.

Was this from a previous Sunday? If so, my mistake. If not, then perhaps something leaked to WSJ.

Attached...

It just depends on what is in the letter agreement, if there is one. Then it depends on capital levels, amendment to SPSA, etc. My desired exit price will adjust based on what happens with those events if/when they occur. I think a 25% discount for unknown unknowns is steep. Perhaps it made sense before we had all the major players tell us what they're going to do, getting their desires in writing, favorable court ruling, etc., but now I think adding that much of a discount is being far too conservative. I don't know what the discount should be, probably whatever number allows the investor to sleep at night.