Luke 532

I agree 100%. With that said, if there is a plan out there that is beneficial to prefs and satisfies Stevens then that is a very, very good thing for the odds of prefs doing very well with whatever plan ends up being implemented.

Why does anyone give a rat's ass what David Stevens wants? I don't. If our most vocal and potentially influential (Corker, Warner, Stevens, etc.) opposition is backing off/compromising in a way that is beneficial to prefs (and maybe common), I think that's noteworthy.

I agree on Muolo... he is essentially a megaphone for David Stevens. I did find it interesting that Stevens, oops I mean Muolo, confirms that the GSE's won't be gone but rather minor fixes will be made. The more news that comes out the more it sounds like Stevens is going to be satisfied with the gov't guarantee.

https://www.insidemortgagefinance.com/imfnews/1_1385/daily/loandepot-resumes-showing-up-elsewhere-1000046558-1.html By Paul Muolo pmuolo@imfpubs.com A day after the White House released language calling for an explicit federal guaranty on agency MBS in its “Delivering Government Solutions for the 21st Century” blueprint, the National Association of Realtors hosted a roundtable on GSE reform. Among the speakers at the Friday, June 22, forum was Compass Point director Isaac Boltansky, who rightly pointed out that sentiment in Washington regarding Fannie Mae and Freddie Mac has changed. Republicans and Democrats alike no longer want to obliterate the government-sponsored enterprises and instead can live with minor adjustments. “Effectively, we’ve gone from consideration of tearing down the whole house for a rebuild to the belief that we should just tweak the house’s plumbing and do some landscaping,” Boltansky said…

Fannie and Freddie gone and replaced by other guarantors? Other guarantors in the mix, sure, but GSE's gone and replaced? That's not how I interpreted the Mulvaney report. Thoughts? https://thenationalrealestatepost.com/trump-looks-to-dump-fannie-freddie/

https://www.cnbc.com/video/2018/06/22/freddie-mac-ceo-wont-see-company-out-of-conservatorship-in-my-tenure.html Donald Layton (Freddie CEO) this morning: "A legislative solution is not in the near term. The quiet alternative, which is administrative reform, is being talked about a lot, including by elected officials. That's the up and coming thing where people are focusing." A Moelis guy is in the interview and offers his thoughts. And he mentions the Mulvaney plan released yesterday. If you read his body language, he seems happy. I'm sure this interview taking place about 20 hours after the report coming out is all just a coincidence and not coordinated at all. ;-)

This would be beautiful. Thanks for your comments, cherzeca.

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)

And the court ruling today on CFPB being unconstitutional may indirectly be just what we needed. If CFPB and FHFA are so similar, which they are, and if FHFA is deemed unconstitutional then wouldn't it stand to reason that the entire conservatorship is nullified... in other words, goodbye warrants, goodbye senior prefs, etc. Would make sense to dot the i's and cross the t's now on a final solution while the gov't still has control.

link? doh! forgot to include that. here you go: http://www.nysd.uscourts.gov/cases/show.php?db=special&id=634

Take advantage of the inefficiency.

District Court has declared CFPB unconstitutional. Up next, FHFA? Edited to add this link: http://www.nysd.uscourts.gov/cases/show.php?db=special&id=634

To free Fannie and Freddie, their regulator may bypass do-nothing Congress https://www.marketwatch.com/story/to-free-fannie-and-freddie-their-regulator-may-bypass-do-nothing-congress-2018-06-21?mod=mw_share_twitter

Mulvaney on his plan... "By the direction of @POTUS, we released a plan to make government more effective, efficient and accountable to better serve the American people."

*REPORT CALLS FOR U.S. ENTITY TO OVERSEE FULLY PRIVATE GSES 13:10:16 *GSE PRIVATIZATION WOULD ENABLE COMPETITORS, WHITE HOUSE SAYS 13:10:18 *REPORT URGES EXPLICIT MBS GUARANTEE FOR GSES AND COMPETITORS 13:10:20 *WHITE HOUSE REORGANIZATION PLAN WOULD REMOVE GSES' U.S. CHARTER 13:10:22 *FANNIE-FREDDIE FULL PRIVATIZATION URGED IN WHITE HOUSE REPORT 13:10:24 FMCC,FNMA

Yes. Share prices were flat/down a little until this hit. I doubt many people have seen the document yet. Buckle up.

https://www.politico.com/f/?id=00000164-2324-dbdc-a96d-373e4e2a0000 Page 17 (and repeated on page 75 nearly word-for-word) Transform the way the Federal Government delivers support for the U.S. housing finance system to ensure more transparency and accountability to taxpayers, and to minimize the risk of tax payer-funded bailouts, while maintaining responsible and sustainable support for homeowners. Proposed changes, which would require broader policy and legislative reforms beyond restructuring Federal agencies and programs, include ending the conservatorship of Fannie Mae and Freddie Mac, reducing their role in the housing market, and providing an explicit, limited Federal backstop that is on-budget and apart from the Federal support for low- and moderate-income homebuyers. Page 75 (this part is in addition to the page 17 repeat) This proposal would reorganize the way the Federal Government delivers mortgage assistance and go beyond restructuring Federal agencies and programs by transitioning Fannie Mae and Freddie Mac to fully private entities. Looks like the document was created on June 6th of this year if you right click and look at document properties.

For what it's worth, seems like Wilbur Ross likes what Mnuchin is doing quite a bit: Ross on Mnuchin: “I think that when the history of the Trump administration is finally written, the world will recognize that Steven Mnuchin ranks up there with Alexander Hamilton, with Mellon and with the other icons of American Treasury historically."

There was audio for most of the presentation if you called the number e-mailed at time of registration. But the audio got cut off.

so isn't it kinda weird that they just stopped this call 1/2 way thru? Technical difficulties.

Slides from FHFA conference call presentation today... https://www.dropbox.com/sh/mc5q0zj28ng6kv0/AAB0eX_JIQGo3WDqZqUHWsSYa?dl=0

I don't recall them using such direct language though in past letters. This one seems more to the point. Perhaps I'm wrong.

Hah! Good one :). It does read like we wrote it.

Letter sent to FHFA today (attached)

I'm not a subscriber but this is an interesting headline (see it in the URL): https://subscriber.politicopro.com/financial-services/whiteboard/2018/06/civil-rights-trade-groups-urge-watt-to-do-more-on-gse-capital-restoration-1429700