Luke 532

Fairholme motion granted. Gov't has until this Friday to let Sweeney know what they will do (further review vs. produce docs). If they plan on producing the 56 docs, they need to do so by Tuesday, November 1st.

God, what assholes. Yep. They're certainly not making friends with Sweeney as I'm sure her blood pressure is through the roof at this point.

An emergency motion to see a settlement between two private parties... huh? From Peter A. Chapman... "FHFA filed an emergency motion this afternoon asking Judge Moreno to compel the Edwards Plaintiffs to give it a copy of their settlement agreement with PwC, and FHFA wants a copy by Oct. 28. A copy of FHFA's emergency motion is attached to this e-mail message." 16-cv-21224-0052.pdf

The real Tim Howard's piece out today... Getting Real About Reform https://howardonmortgagefinance.com/2016/10/25/getting-real-about-reform/

CBO Analysis Reveals Benefits of GSE Capital Retention http://investorsunite.org/cbo-analysis-reveals-benefits-gse-capital-retention/

I don't blame you. Probably nothing of substance will be said, and if something is said we'll likely get wind of it. Maybe I'm wrong that nothing of substance will be said. Probably nothing, but an interesting tweet today from Fannie Mae... Fannie Mae Verified account ‏@FannieMae We're @ #MBAAnnual16 & we have a BIG announcement. Get the scoop @ the GSE session featuring our CEO Tim Mayopoulos, 11 a.m. tomorrow.

I don't blame you. Probably nothing of substance will be said, and if something is said we'll likely get wind of it. I'd rather buy an additional thousand shares of FNMAH than attend that event. ;)

This might be interesting for anybody in the Boston area October 23-26... A Conversation with GSE Leadership with Opening Remarks by FHFA Director Mel Watt https://www.mba.org/conferences-and-education/event-mini-sites/annual-convention-and-expo-2016/schedule?id=10833_156758&expand=true

From Peter Chapman yesterday... A new lawsuit challenging the Third Amendment was filed today. The lawsuit is captioned Collins v. FHFA and was filed in the Southern District of Texas. Proceeding under the Administrative Procedures Act, the Shareholder-Plaintiffs ask the Court to vacate and set aside the Net Worth Sweep. FNMAS_Collins.pdf

Seems many are getting their thoughts out there today. Perhaps something is brewing beneath the surface... CBO: Fannie Mae and Freddie Mac should keep $5 billion in profits per year. Illustrative option vs. policy option … October 20, 2016 Jacob Gaffney http://www.housingwire.com/articles/38332-cbo-fannie-mae-and-freddie-mac-should-keep-5-billion-in-profits-per-year Budget office: Letting Fannie, Freddie raise capital would reduce bailout risk by Joseph Lawler (@JOSEPHLAWLER) 10/20/16 4:58 PM http://www.washingtonexaminer.com/budget-office-letting-fannie-freddie-raise-capital-would-reduce-bailout-risk/article/2605163 GSEs need greater taxpayer protection upfront, Congress BlogiconCongress Blog feed October 20, 2016, 08:20 am by Lindsey Johnson https://origin-nyi.thehill.com/blogs/congress-blog/economy-budget/301880-gses-need-greater-taxpayer-protection-upfront

Brown, settlement talk, Waters, Investors Unite audio... Brown... +1. Add to it that the gov't asked for terms awhile back, Sherrod Brown's comments, Berkowitz's comments, Political Alpha's piece as reported by Politico, etc... Sherrod Brown/Bruce Berkowitz comments: Brown 12/18/2015... https://www.congress.gov/congressional-record/2015/12/18/senate-section Mr. BROWN. I will say to my colleague from New York that it does not. That is not the effect of the language. Any number of decisions could be made after that date, when a new Congress and a new President will be in place. Nor does this provision have any effect on the court cases and settlements currently underway challenging the validity of the third amendment. As the Senator from Tennessee said yesterday, "this legislation does not prejudice'' any of those cases. Berkowitz 2/23/2016 At 33-minute mark of the call: https://engage.vevent.com/index.jsp?eid=4711&seid=18 "In late 2015 there were settlement communications between plaintiffs and the government. But frankly, given how deep treasury has dug in its heels and has tried to hide the truth by withholding evidence, it remains unclear to me whether treasury is capable of having an earnest conversation." Gov't asking for terms: Jon Prior (Politico) tweet on 2/24/2016: "Treasury, DOJ made no offer last fall, asked for terms." Political Alpha as reported by Politico 4/2/2016: http://www.politico.com/tipsheets/morning-money IS WALL STREET SLEEPING ON GSE REFORM? — Via Political Alpha: “While the 10/19/15 coordinated policy response by the White House and Treasury to our 10/5/15 note, ‘White House Looking into Ending GSE Conservatorship,’ had supposedly put the issue over rebuilding capital at the GSEs to bed, contacts tell us that the debate is still very much alive and ongoing inside the Obama Administration. “Moreover, the discussions have moved to Federal Housing Finance Authority (FHFA), which has the authority to act unilaterally and is now actively reviewing its options and likely to act much sooner than Wall Street is expecting to begin the next major housing reform initiative: rebuilding capital at the GSEs.” Waters... Investors Unite audio... Audio recording: http://investorsunite.org/iu-audio-cleanup/

What's the point of issuing a ruling with no deadline, especially given how she is aware (and upset) at their delay tactics?

Question for the attorneys: given that there is no deadline for the government to produce the 56 documents (per the Motion to Compel), why would they ever produce them outside an order with a firm date to produce said documents?

PWC/Edwards settled... Judge Moreno entered the Order attached to this post this afternoon denying as moot all pending motions in Edwards v. PwC. In accordance with yesterday's Notice, the case has indeed been settled and the settlement papers should be filed next week. EdwardsPWC_10-13-2016.pdf

If you mean "why" instead of "when" the answer would be the Perry and Fairholme cases, and everything that goes along with those cases, would no longer exist. That is a major incentive to settle. If you mean "when" the answer is probably before more documents become public.

Heck, even Carney thinks FHFA is unconstitutional... "This part of today's big CFPB case creates the possibility that FHFA could survive constitutional scrutiny. But that seems a stretch." https://twitter.com/carney/status/785930805222764544

Steve, thanks for posting full decision. Interesting note: Ted Olson was the lead attorney in the CFPB case and is the lead attorney in the Perry case as well.

Attached image: potential impact to the Perry Appeal? Wouldn't the CFPB decision hint that the FHFA may also be unconstitutional? What would that mean for our case? I would love some thoughts from people on this board... especially the lawyers. Thanks in advance!

if you look at prices before lamberth decision, you will see 4ish for common and 8ish for pref...anticipating a P win no doubt. but if you get a remand from appeals ct, i dont know why the price action wouldnt go higher than that (at least confirmation that lamberth was wrong is more valuable than optimism pre-lamberth, no?)...and of course much higher if reversal https://seventeenmile.com/2015/06/23/special-situations-fannie-mae-raisins-analysis-june-2015/ FNMAS has traded since August 2012 (FNMA’s PPS is in parentheses): Pre-NWS (August 10, 2012): $2.30 ($.28) Post-NWS (October 5, 2012): $.83 ($.28) Pre-Fairholme (March 8, 2013): $1.87 ($.29) Post-Fairholme MT High (May 24, 2013): $6.14 ($2.97) Pre-Lamberth High (March 7, 2014): $12.31 ($5.33) Post-Lamberth Low (October 8, 2014): $3.35 ($1.72) Post-Lamberth High (May 1, 2015): $5.06 ($2.82) Most Recent PPS (June 22, 2015): $3.81 ($2.43)

Audio of the call: http://investorsunite.org/iu-audio-cleanup/

I know you're just quoting here but 308 cases in what time frame? I've been keeping track of Mar-May hearings and we have heard back from roughly only 50% of them. "The DC Circuit has an informal term that runs from September through May. From September 2015 through May 2016 there were 308 cases, by my count, that were argued and we have 303 decisions. As you can tell the court tries to get those opinions out prior to the next term. (reason for delay) Our best guess, and it's just a guess, is that a dissent is being written and that's why it's seeping into the next term."

Gretchen Morgenson, Pulitzer Prize winner, has another GSE article out... http://mobile.nytimes.com/2016/10/05/business/court-orders-us-to-release-documents-on-mortgage-giants.html?_r=0&referer=http://gselinks.com/

To anybody reading this post, I'd like to offer a free copy of the book mentioned in the filing, Mere Christianity. The late author, C.S. Lewis, was an atheist that investigated the merits of the claims of Jesus Christ. You might recognize Lewis' name because he also wrote The Lion, the Witch, and the Wardrobe (as part of The Chronicles of Narnia). Send me a private message if you'd like a free copy. Amazon link of the book: https://www.amazon.com/Christianity-Amplified-Introduction-Broadcast-Christian/dp/B000OESR7K/ref=sr_1_3?ie=UTF8&qid=1475256965&sr=8-3&keywords=mere+christianity

"In other words, administrative hubris does not get the last word under our Constitution. And citizens can count on it."

Is this worrisome? In other words, will it gain any traction? http://assets1c.milkeninstitute.org/assets/Publication/Viewpoint/PDF/Toward-a-New-Secondary-Mortgage-Market.pdf What is the process for ending the conservatorships of the GSEs? Once Fannie and Freddie are ready to be recapitalized as mutuals by their lenders, and a new governance structure is established, they would be put through receivership and emerge as new lender-owned credit enhancers. The FHFA, as receiver, could contract with these new entities to manage the runoff of the conservatorship books of business.