Luke 532

Fat Pitch, if the plan being discussed today is implemented, do you think Treasury just lets jr prefs sit and they do nothing with them? Curious of your thoughts on how they deal with jr prefs.

https://www.insidemortgagefinance.com/imfnews/1_1230/daily/Treasury-GSE-Plan-Still-a-Work-in-Progress-1000043566-1.html

Maybe Admin wants Corker's support for tax reform so he's playing nice for the time being.

Well, if that were to happen, the junior prefs would get called at par as long as Mnuchin declares senior prefs are paid in full. If he doesn't declare senior prefs paid in full then it's a huge mess and there are even more lawsuits on his hands... one of which (Perry) has already said prefs have claim.

Housing reform talk going on live... https://financialservices.house.gov/

+1

Powell picked for Fed...thoughts?

https://www.housingwire.com/articles/41714-mark-calabria-trump-administration-committed-to-ending-conservatorship?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire

Alanna McCargo‏ @MyHomeMatters 24m24 minutes ago ‘If it were easy to get GSEs out of conservatorship, it would have been done already’ -Mark Calabria #innovateHousing #InnovateHousing @MarkCalabria We are committed to not handing over the GSEs in conservatorship to the next administration. Sounds like they're leaning towards "announce future, not immediate, exit from conservatorship"... point 5 in the attached Moelis slide.

Jeb Hensarling to retire... http://thehill.com/policy/finance/358040-gop-rep-jeb-hensarling-to-retire-after-end-of-current-term-report

No retained portfolios...

Thank you, Luke. Adding to this... here is his speech on Fannie/Freddie/Housing from July 2017 https://www.federalreserve.gov/newsevents/speech/powell20170706a.htm Note his principles for reform are: 1. Mounds of private capital (although he refers to this as risk-transfers and multiple guarantors, not built-in capital). 2. Paid-for explicit guarantee to MBS, not institutions. 3. Break up the duopoly implicitly stating Congress should open up the charters to other institutions. 4. Restructure and repurpose parts of the existing architecture. 5. End the status quo by finding areas of bipartisan agreement. Overall, he is against "a government-dominated mortgage market with insufficient private capital to protect taxpayers, and insufficient competition to drive innovation." Basically, open up the system for competition, have a narrow, explicit government guarantee and restructure Fannie and Freddie into smaller guarantors. This would be in opposition to recapping and releasing, in opposition to fully re-capitalizing Fannie and Freddie and turning them into "ICBA" utilities but much closer to the original Jim Millstein plan. Jennifer Jacobs‏Verified account @JenniferJJacobs 1m1 minute ago NEW: Trump is leaning toward appointing Jerome Powell to be the next chairman of the Federal Reserve, sources tell me and @SalehaMohsin.

I assume when you say "nothing seems to matter..." you're referring to the stock price reaction, or lack thereof. I humbly suggest to ignore stock price and focus on whether or not events impact your thesis negatively, positively, or not at all. If it impacts your thesis in some way then the news certainly does matter. If it doesn't impact your thesis in some way then the news does not matter.

Jerome Powell, possible Fed Chair, on the GSE's: Mr. Powell has called on Congress to overhaul the housing finance system, saying he'd like to see the country's two large mortgage-finance firms, Fannie Mae and Freddie Mac, move out from under government conservatorship. More private capital in those firms would reduce the risk of a taxpayer-funded bailout in the event of a downturn, he said in a speech in July. http://www.foxbusiness.com/features/2017/09/29/what-need-to-know-about-jerome-powells-views.amp.html

I'm not saying they're connected events, but I do find it interesting that Stevens announced his retirement at the same event that he announced Trump's GSE plan is coming within weeks. The Treasury Department will likely release principles on housing finance reform – centering on what to do about Fannie Mae and Freddie Mac – within weeks, according to David Stevens, president and CEO of the Mortgage Bankers Association. Speaking at the MBA’s annual convention in Denver, he said the principles will avoid specificity so as not to box-in legislation being drafted in Congress.

Coming Soon: The Trump Administration’s ‘Principles’ on GSE Reform https://www.insidemortgagefinance.com/imfnews/1_1220/daily/trump-treasury-gse-reform-plan-coming-soon-1000043388-1.html#Login

David Stevens is leaving MBA (not until next September though) https://www.housingwire.com/articles/41654-shocker-mba-president-and-ceo-david-stevens-announces-retirement?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire

Prepared remarks... https://www.fhfa.gov/Media/PublicAffairs/Pages/Prepared-Remarks-of-Melvin-L-Watt-Director-of-FHFA-at-Mortgage-Bankers-Association-Annual-Convention-and-Expo-2017.aspx?utm_medium=email&utm_source=govdelivery

Watt scheduled to speak at MBA convention this afternoon.

Trump picks MBA’s Len Wolfson to serve as HUD assistant secretary https://www.housingwire.com/articles/41621-trump-picks-mbas-len-wolfson-to-serve-as-hud-assistant-secretary?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire

That's not a discussion for this forum. Research the differences between a hedge fund and a mutual fund. Then send me a private message and we can discuss.

No. His hedge fund did, his mutual fund did not. The PDF you posted is for his mutual fund clients.

https://www.allenwest.com/2017/10/15/exclusive-government-scam-thats-keeping-obamacare-alive/

ObamaCare subsidy is going to be gone, too. http://www.politico.com/story/2017/10/12/trump-obamacare-subsidy-243736

Thanks for the update.