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FNMA and FMCC preferreds. In search of the elusive 10 bagger.


twacowfca

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While not stopping the sweep short term is disappointing that isn't the end game we are looking for which will ultimately be reform. Would have been a great sign from Mnuchin none the less.

 

Congress is clearly worried something is brewing at treasury/FhFA. Contrast the sentiment compared to even 6 months ago. Not long ago Corker went on CNBC saying he would short FnF and now he is asking them to not stop the sweep and act unilaterally.

 

Warner also spoke out against Mnuchin at his confirmation hearing as he did not trust him to not act unilaterally on housing reform. Corker, Warner et al have lost the upper hand. We just need Mnuchin/Watt to do what we all want them to do, until then we sit and wait.

 

Corker also writes "Perhaps congress determines it is appropriate to recapitalize significant restructured enterprises as part of a comprehensive approach to housing finance reform."

 

Oh really Mr Corker? Now congress may recapitalize some version of FnF? Huh?

 

Maybe he wants to get out of his short before they stop the NWS? LOL

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even if the nws was retroactively invalidated, fnma would still owe treasury about $4B after 3/31 payment.  so this payment is something that would have to be made either now or later if reinstating the original deal is to be part of the reform objective

 

It seems like one more quarter before the pressure is really on given that the full amount will be repaid and tax payers are basically 100% responsible for any losses taken.

 

Coudn't have asked for a better time for Mnuchin to move into the office.

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You could look at it this way. For 8 years this happened every 3 months and there wasnt a peep out of any news outlet. Now Reuters, Yahoo, Benzinga, etc are picking this up. If anything many more people are much more aware then they used to be.

 

If anything all this payment does is increase the urgency for action.

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Anyone have a feel for what Jason Chaffetz means by this?

 

" these quasi Govt entities are certainly in our

sights starting with the biggest liability for the United States

Fannie Mae and Freddie MAc .. and there's more Salacious

things going on and I did use the right word Salacious ..

you'll hear more about that later "

 

Is he on an oversight committee of some sort?

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Well, they announce each sweep amount in the 10K/10Q and then the sweep actually takes place at the end of the quarter.

 

https://www.fms.treas.gov/dts/index.html

If you click that link and then select a text file you'll see this at the bottom:  Note: The Daily Treasury Statement (DTS) is available by 4:00 p.m. the following business day on the Fiscal Service website www.fms.treas.gov/dts.

 

So, any payments made this quarter would show up at that link in the text file by 4:00 p.m. on Monday.  I wouldn't expect anything today.

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Tax cut write down potential and draw according to BMO:

https://ca.finance.yahoo.com/news/fannie-mae-releases-february-2017-200500790.html

 

What should I look for in the February summary regardin gthe tax cut write down potential?

 

http://www.reuters.com/article/us-fanniemae-tax-idUSKBN1722O6

 

 

https://assets.pershingsquareholdings.com/media/2014/09/28204101/PSH-Annual-Report_12.31.16.pdf

 

We believe that Fannie and Freddie offer a compelling risk-reward as there are various scenarios which will

generate a many-fold multiple from current levels. While a total loss is possible, we believe the probability of a

total loss is relatively modest, and has become lower in the new political environment.

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"Mortgage Industry Expects FHFA Chief Watt to Change the GSE Dividend; Five Senators Warn Against It"

 

Is this fake news?

paywall: http://www.insidemortgagefinance.com/imfnews/1_1073/daily/five-senators-tell-fhfa-not-to-change-gse-dividends-1000040730-1.html

 

 

Looks like the forum had some issues and lost the past few pages. Did you sell your shares or still holding on?

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http://www.insidemortgagefinance.com/imfnews/1_1076/daily/stan-humphries-of-zillow-says-gse-reform-is-doable-1000040819-1.html?ET=imfpubs:e9111:73599a:&st=email&s=imfnews

 

Short Takes: Fixing the GSEs: A Slam Dunk? / ‘Abundant’ Bipartisan Agreement? Huh? / How Rep. Jeb Gets There

 

By Paul Muolo and Brandon Ivey

 

pmuolo@imfpubs.com, bivey@imfpubs.com

 

To Zillow Group Chief Analytics Officer Stan Humphries, reforming Fannie Mae and Freddie Mac looks like a walk in the park compared to repealing and replacing the nation’s healthcare system. At least that’s what Humphries suggested in a recent blog posting on the real estate company’s website. The CAO and chief economist believes the Republicans' failure to repeal Obamacare “might” make President Trump more willing to work with Democrats. He adds: “I’ve got a shovel-ready project that achieves both of these goals: Fix Fannie Mae and Freddie Mac, the two mortgage giants … that the government took over in 2008 in the midst of the housing market collapse. Why GSE reform? It’s a critical, if under-appreciated, issue affecting most Americans and there’s already abundant bipartisan agreement on the basic outlines …”

 

Wait a second. “Abundant bipartisan agreement” on the basics? Perhaps the Zillow economist has been spending too much of his waking hours analyzing property listings and not enough time paying attention to what Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, has been saying the past few years…

 

Then again, we have heard an opinion or two from mortgage lobbyists that Hensarling might be open to some type of government guaranty on MBS, but how he might agree to such an animal has yet to be revealed…

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Did the market not read this? http://www.housingwire.com/articles/39757-ben-carson-housing-will-be-part-of-trump-infrastructure-bill?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire

 

I've read that an infrastructure bill has the best chance of passing because infrastructure spending has the most bipartisan support. If Carson has intent of merging it with housing reform that should be very good news.

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Did the market not read this? http://www.housingwire.com/articles/39757-ben-carson-housing-will-be-part-of-trump-infrastructure-bill?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire

 

I've read that an infrastructure bill has the best chance of passing because infrastructure spending has the most bipartisan support. If Carson has intent of merging it with housing reform that should be very good news.

 

The article doesn't mention Fannie or Freddie so it probably doesn't pop up on anybody's radar... and the twins might not be included in any of that Carson reform.

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Did the market not read this? http://www.housingwire.com/articles/39757-ben-carson-housing-will-be-part-of-trump-infrastructure-bill?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire

 

I've read that an infrastructure bill has the best chance of passing because infrastructure spending has the most bipartisan support. If Carson has intent of merging it with housing reform that should be very good news.

 

I support this post.

 

it makes good sense --- the warrants can fund most of the public portion of the $1trn infrastructure plan

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Any idea what Trump said or implied this morning? Supposedly he caused this.

 

 

What are you referring to? His tweet this morning only showed a retweet of spying by Susan Rice.

 

Not sure and can't find the tweet now. Some mention of Trump lack of support in statement, then crash.

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Any idea what Trump said or implied this morning? Supposedly he caused this.

 

 

What are you referring to? His tweet this morning only showed a retweet of spying by Susan Rice.

 

Not sure and can't find the tweet now. Some mention of Trump lack of support in statement, then crash.

 

OK. We will see if it shows up in today's GSELinks.

Sometimes these rumors are setup by the big boys so they can load up.

I remember when the Fiat Chrysler merger was announced, on that same day WSJ came up with 7 hit pieces on the front page for FCAU. The stock price now is way higher than then.

 

 

 

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