Luke 532

https://www.marketwatch.com/story/fhfa-acting-director-discussing-plan-to-take-fannie-and-freddie-out-of-conservatorship-2019-01-18?mod=mw_share_twitter "The acting director of the Federal Housing Finance Agency has told the agency’s employees that the regulator will announce a plan within weeks to take the government-sponsored enterprises out of conservatorship." Later... "A spokesperson for the agency confirmed there was discussion about ending Fannie and Freddie conservatorship but denied there was any talk of timing or details."

I don't think she means GSE prefs, she means other company prefs or dividend stocks.

+1. Very nice work!

Otting evaluating FHFA's position makes it possible (I'd say highly probable) that FHFA's position will change in a meaningful way. maybe yes, maybe no. remember, this is Otting's filing on behalf of FHFA, not the lawyers representing fhfa. Otting may simply have asked fhfa lawyers for a look at the brief being submitted in his name as acting director, and the lawyers may have said, ahem, it is due today, and Otting simply said get an extension so I can at least read it over the weekend. I expect there will not be any changes. while I think Otting will have an effect on fhfa, I doubt it will be by red pencilling this brief. ValueMaven, I recommend placing infinitely more weight on cherzeca's (Christian) comments than mine when it comes to legal matters. That is definitely not an area of expertise for me, and it certainly is for Christian.

Otting evaluating FHFA's position makes it possible (I'd say highly probable) that FHFA's position will change in a meaningful way.

The attached could prove interesting. Can't wait to read their filing on Monday. FHFA requested and was granted an extension to this upcoming Monday to file a supplemental en banc brief in the Fifth Circuit because "[t]his case raises significant issues of interest to FHFA's new leadership [and] FHFA’s new leadership requires additional time to review the issues presented in the case and to evaluate FHFA's positions." 17-20364-00514792607.pdf

The major downside I see for prefs: (1) If I accidentally enter a market sell order instead of limit. (2) The capital gains tax is going to be painful. :) How many % of your asset do you put into this? I don't want to offer a specific percentage, but I will say the preferred shares collectively are by far my largest investment. Of course, this shouldn't sway anybody one way or another because I am a random guy on a message board.

The major downside I see for prefs: (1) If I accidentally enter a market sell order instead of limit. (2) The capital gains tax is going to be painful. :)

These were notes I kept back in June on this... They are giving a major hint, possibly. Mentioning that they are private companies repeatedly is encouraging. Explicitly stating that they are privately-owned, and then completely wiping out shareholders (instead of just massive dilution to common), would seem to set the White House up for lawsuits that could come back to hurt them. I think they are smarter than that. It reads to me that they are making a concerted effort to mention that they are privately-owned companies. "However, this system is challenged by the operation of two privately-owned Government sponsored-enterprises (GSEs), Fannie Mae and Freddie Mac..." (page 75) "Competition to the duopolistic role played by the two privately-owned GSEs would be an essential element..." (page 75) "In order to propose changes in the Federal Government’s role in housing finance, this proposal outlines policies related to the privately-owned GSEs and ending their conservatorship." (page 75) "Under the current system, Fannie Mae and Freddie Mac, two privately-owned GSEs, buy and guarantee..." (page 76)

An announcement that the NWS has been stopped seems imminent. @JoshRosner OTTING in Politico Pro: "Our goal is to be able to complete the release of the GSEs but at the same time make sure that it supports the U.S. housing market." @Fanniegate101 Joseph Otting has made his first on the record comments about ending $FNMA & $FMCC conservatorships & releasing them. The end of this charade is getting closer by the day. Capital is the next logical step by amending the 'net worth sweep' #FannieGate

Fair enough. Hope you have a great 2019!

Emily, The Little Book of Behavioral Investing is 1 of 2 books that I personally recommended you read (the other being The Intelligent Investor, of course). I think I even offered to pay for them? Not sure, don't remember. I'm sure you mean well, but your posts that neither strengthen nor detract from a thesis show that the core messages from those books have not yet hit home. Look, I don't mean to be rude or insensitive or whatever, but taking heed of what I'm saying will provide benefit to you, if properly applied, long after you're done with college. You're young (I presume) so you have an incredibly valuable asset on your side (time). However, one must make haste to learn, devour, then apply those lessons to take full advantage of the gift of time. I wish you well.

She thinks those that have read The Intelligent Investor have been brainwashed. I think that answers your question. http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/fnma-and-fmcc-preferreds-in-search-of-the-elusive-10-bagger/msg343898/#msg343898

https://www.prnewswire.com/news-releases/milken-institute-housing-team-calls-for-administrative-reform-to-strengthen-housing-finance-system-paving-the-way-for-legislative-action-300774588.html

For Fannie I own FNMAH and FNMAS. For Freddie I own FMCCL. In order of current dollar value FNMAH and FMCCL are almost even with FNMAS a distant third.

Otting it is for Acting FHFA Director... https://publicpool.kinja.com/subject-president-donald-j-trump-announces-intent-to-1831248053/amp?__twitter_impression=true Things are really going to start picking up come early January.

https://twitter.com/DoNotLose/status/1075548122020044800 Financial Stability Oversight Council 2017: "Housing finance reform legislation is needed..." Financial Stability Oversight Council 2018: "Housing finance reform is urgently needed..." "Legislation" is removed. Reading tea leaves... I know, I know...

Interesting comments from Tim Howard... https://howardonmortgagefinance.com/2018/12/03/the-interested-parties-respond/#comment-8603

Mulvaney is Acting Chief of Staff.

+1. Christian is a stud. Incredibly grateful he accepted my pleading for him to join this community! He was instrumental in my understanding of the MBIA/BAC legal mess a few years back through his blog, and I knew he would be very helpful to many people here.

Classic!

Calabria it is... https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-announces-intent-nominate-appoint-individuals-key-administration-posts-3/

I'm not responding to the gist of your post, but responding only to say that I'd caution against using market prices as a proxy for value or for what the future may hold. My comment isn't so much for you, but for some reading this board that might have a tendency to read too much into current prices of any security, and especially a situation like the GSE's.

Calabria. White House Expected to Nominate Pence Aide to Lead FHFA https://www.wsj.com/articles/white-house-expected-to-nominate-pence-aide-to-lead-fhfa-1544457677

Rumor mill: Calabria to head FHFA, Otting to serve as interim. https://www.insidemortgagefinance.com/imfnews/1_1500/daily/white-house-to-name-mark-calabria-to-head-fhfa-1000048717-1.html?ET=imfpubs:e11655:73599a:&st=email&s=imfnews It appears that conservative economist Mark Calabria – presently serving on the staff of Vice President Mike Pence – will be nominated by the Trump administration to be the next director of the Federal Housing Finance Agency. Of course, it hasn’t happened yet. All this week we heard from a handful of Washington-based lobbyists and advisors who thought the announcement would come by the weekend. (So far, no.) But there’s a twist as well. The White House is expected to name Comptroller of the Currency Joseph Otting interim FHFA director, wearing two hats. It’s just a hop, skip and a jump from the OCC building to FHFA headquarters…