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Freddie Mac Profit Slips On Interest Rate Hedges
- $3.4 billion in interest rate hedges wiped out the majority of Freddie Mac's profit.
- Freddie Mac's equity capital is now $1.8 billion.
- Future losses put taxpayers at risk.
Fannie And Freddie: Congress Established Rules In 2008
- Conservatorship was intended to make Fannie and Freddie safe and solvent.
- Conservatorship was intended to preserve and conserve assets.
- According to Treasury, FHFA Director Watt has the power of ALL stockholders.
- By statute, the powers of stockholders, including Treasury, are suspended until conservatorship ends.
Fannie And Freddie: Legal Battle Rages On As Shareholders Seek Answers
- Judge Pratt dismisses Iowa case on 'Issue Preclusion'.
- Bruce Berkowitz fires back on a conference call.
- Experts publish paper outlining illegality of the conservatorship.
Fannie And Freddie: Congressional Republicans Are Signaling Compromise On GSE Reform
- Republicans may want to wind down the government sponsored entity charters, but not the companies.
- Funding for affordable housing trusts must remain in place for Obama to sign legislation.
- Ending the duopoly business model may involve spin-offs of the various businesses.
- Millstein and Co. may present the simplest and most successful solutions for reform.
President Obama Signals Change On Fannie And Freddie Reform
- President Obama has changed his message on GSE Reform.
- Fannie and Freddie Have Paid Back Taxpayers.
- The Net Benefit of Fannie and Freddie is Positive for Taxpayers.
Why A Fannie And Freddie Wind Down Could Benefit Shareholders
- Wind down could mean growth of the business.
- Wind down could mean ending the conservatorship.
- Taxpayers have been repaid.
2015 Brings A Flurry Of Good News For Fannie And Freddie
- RBS settlement of $7.7 billion could add to GSE profits.
- Fannie and Freddie will jump-start lending to marginal home buyers.
- News Stories reporting that Fannie and Freddie have created profits for taxpayers.
Fannie And Freddie: Current Plans Could Affect Iowa Pensions
- IPERS holds $1 billion in GSE Mortgage Securities.
- Some GSE reform plans would "bifurcate" the securities market.
- Treasury and FHFA actions call their motives into question.
Fannie And Freddie: Everyone Says Read The Statute
- Judge Pratt asks whether he should just "Read the Statute."
- The Plaintiffs say this is music to their ears.
- Former HERA technical advisor says statute is not being followed.
Director Watt Begins To Exercise His Administrative Authority
- Director Watt exercised his power under HERA.
- Increased spending and looser mortgage standards require capital.
- Expect FHFA to announce an end to the Net Worth Sweep.
Fannie And Freddie Shareholders Follow Director Watt To Miami
- FHFA came to Miami to promote HARP.
- Investors in Fannie and Freddie also came to Miami.
- Significant value can be gained by releasing the GSEs from conservatorship.
Fannie And Freddie: Director Watt Should Exercise His Executive Powers
- Director Watt can use his executive powers to end the Net Worth Sweep.
- Director Watt does not report to the U.S. Treasury.
- Ending the Net Worth Sweep will eventually end the conservatorship.
Fannie And Freddie: FHFA Action Could Permanently Strengthen The Housing Market
- FHFA action is a win-win for taxpayers, homeowners, and shareholders.
- Analysts target $18 to $50 for post-conservatorship share values.
- Treasury could receive a windfall from recapitalized GSEs.
Fannie And Freddie: Financial Disclosures Needed On Guarantee Fee Assets
- The total value of guarantee fee assets should be hedged.
- The total value of guarantee fee exposure should be disclosed.
- Mortgage servicing rights (MSRs) are comparable to guarantee fees.
- MSRs are carried at fair value under GAAP.
- Bob Corker would rather be run over by a train than speak with shareholders.
Impac Mortgage Quarterly Earnings And Future Prospects
- Quarter over Quarter Core Revenue Growth of 39.6%.
- Strategic Plan to Capture Non-QM Lending Market.
- Significant Value to be Unlocked Through DTA.
Civil Rights And Shareholders Groups Ask For FHFA Action
- Civil rights groups ask FHFA to preserve Fannie and Freddie.
- The American Dream of Homeownership must be preserved for the middle class and minorities.
- Fannie and Freddie must be allowed to rebuild capital.
The Reason Fannie And Freddie Shares Are Rising Today
- Common Shares of Fannie and Freddie Rise After News of the Common Securitization Platform.
- Looser Lending Standards Announced by the Regulator Mean that Private Capital Needs to be Raised.
- FHFA has a Responsibility to Ensure Safety and Soundness of the System.
Fannie And Freddie Did Not Need A Bailout
- Losses were overstated, due to Treasury involvement.
- Equity book value would be about $31 per share, without the bailout.
- Treasury knows that the evidence is damaging to the financial markets.
- Judge Sweeney agrees that discovery documents could damage the financial system.
Fannie And Freddie: Elegant Solutions After Imprudent Actions
- Everything should be made as simple as possible, but not simpler.
- Bailout terms for banks amounted to free money.
- Victims of poor lending standards paid the most.
- Many things that seemed prudent at the time turned out to be imprudent.
- Paulson rejected a substantial offer from Chinese investors.
Fannie And Freddie: It Was Never An Issue Of Solvency
- Non-cash DTA impairment increased SPSPA costs by $74.5 billion.
- Non-cash excess loan loss reserves possibly increased SPSPA costs by $41 billion, or more.
- $26 billion in actual cash interest was charged on these phantom losses.
- Cash flows from the net worth sweep tell a compelling story.
Fannie And Freddie Saga: More On Lamberth's Dismissal
- Knee jerk reactions to negative headlines are never good.
- Takings has not occurred yet, according to Lamberth.
- Shareholder rights continue to exist, despite the negative rhetoric.
FHFA Promotes President Obama's Housing Program In Detroit
- HARP exists under authority of FHFA and HERA.
- Obama directed FHFA to implement HARP in 2009.
- Treasury, HUD, and FHFA have deep ties.
- Shareholder Rights are not in doubt when the Rule of Law is followed.
Blackstone Plan Proves Value Was Taken By Treasury
- Treasury received Blackstone's recapitalization plan.
- Recap plan proves that the equity shares had some value.
- The 3rd Amendment of the PSPA was designed to destroy value.
- Mario Ugoletti's sworn testimony is contradictory to this document.
Expect Gilead Sciences To Outperform
- Fair target price is more than $125 per share.
- Sovaldi has a potential market of 200 million people, worldwide.
- Political Risks are biggest threat.
Fannie Mae Has Adequate Capital To Be Released From Conservatorship
- Evidence seems to suggest that the GSEs can exit Conservatorship as-is.
- Existing legislation provides capital requirements.
- Fannie Mae may have enough capital for release from government control.
- Fannie and Freddie are the best solution for low-cost American home ownership.
- Nobody will question the legitimacy of the warrants until the third amendment is reversed.
Fannie Mae Reports $5.3 Billion Profit In 1st Quarter Of 2014
- Total Comprehensive Income of $5.7 Billion for the 1st Quarter.
- Diluted Pro Forma EPS of $0.93.
- Bill Ackman values these shares up to $47.
Time To Short Treasuries? Housing?
- Near-term Economic Weakness May Continue to Push Down Treasury Yields.
- GDP Growth Later in 2014 could Approach 3%.
- The Long-term outlook for Rates is higher.
- Housing Could be Stronger than Expected.
The Irony Of A Fannie Mae And Freddie Mac Stress Test
- In an absolute worst case scenario Fannie and Freddie need $190 billion.
- Treasury has swept more than $200 billion for deficit reduction.
- Fannie and Freddie employees cannot participate in reform.
Congressional GSE Reform Is Dead In 2014
- Johnson-Crapo is dead on arrival.
- Yale Law School scholar sides with shareholders.
- Injunctive relief more likely as Treasury causes irreparable harm.
Housing Prices Rise, New Home Sales Fall, Earnings Loom
- FHFA Housing Prices rise 6.9% y-o-y.
- MGIC and Radian benefit from housing price increases.
- Shareholders still fighting government at Fannie and Freddie.
- New Home Sales drop to 384,000.
Senate Staffers 'Do The Hustle' With Fannie And Freddie Shareholders
- Shareholders met with Senate Banking Committee Staffers.
- Staffers point to the shareholder lawsuits for hope.
- Reid lukewarm on GSE Reform this year.
Fannie And Freddie Investors Unite In Washington DC
- Shareholders came to DC to represent themselves.
- Government has overreached their constitutional power.
- Regulators have breached their fiduciary duties to shareholders.