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David Sims  

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  • Freddie Mac Profit Slips On Interest Rate Hedges
    Fri, Feb. 20 FMCC 21 Comments

    Summary

    • $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
    Wed, Feb. 11 FNMA 66 Comments

    Summary

    • 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
    Wed, Feb. 4 FNMA 43 Comments

    Summary

    • 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
    Wed, Jan. 28 FMCC 18 Comments

    Summary

    • 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
    Thu, Jan. 22 FNMA 48 Comments

    Summary

    • 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
    Tue, Jan. 13 FNMA, FMCC 25 Comments

    Summary

    • 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
    Tue, Jan. 6 FNMA 25 Comments

    Summary

    • 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
    Dec. 24, 2014 FNMA, FMCC 27 Comments

    Summary

    • 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
    Dec. 19, 2014 FNMA, FMCC 38 Comments

    Summary

    • 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
    Dec. 12, 2014 FNMA, FMCC 17 Comments

    Summary

    • 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
    Dec. 9, 2014 FNMA, FMCC 10 Comments

    Summary

    • 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
    Nov. 25, 2014 FNMA, FMCC 21 Comments

    Summary

    • 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
    Nov. 18, 2014 FNMA 25 Comments

    Summary

    • 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
    Nov. 12, 2014 FNMA, FMCC 45 Comments

    Summary

    • 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
       • Nov. 7, 2014 IMH 6 Comments

    Summary

    • 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
    Oct. 30, 2014 FNMA 23 Comments

    Summary

    • 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
    Oct. 21, 2014 FNMA, FMCC 19 Comments

    Summary

    • 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
    Oct. 16, 2014 FNMA, FMCC 60 Comments

    Summary

    • 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
    Oct. 12, 2014 FNMA, FMCC 52 Comments

    Summary

    • 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
    Oct. 7, 2014 FNMA 72 Comments

    Summary

    • 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
    Oct. 3, 2014 FMCC, FNMA 69 Comments

    Summary

    • 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
    Oct. 2, 2014 FNMA 8 Comments

    Summary

    • 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
    Editors' Pick • Jul. 30, 2014 FNMA 46 Comments

    Summary

    • 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
    Jul. 28, 2014 GILD 40 Comments

    Summary

    • 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
    Jun. 13, 2014 FNMA 81 Comments

    Summary

    • 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
    May. 8, 2014 FNMA 20 Comments

    Summary

    • 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?
    May. 6, 2014 TLT 19 Comments

    Summary

    • 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
    May. 2, 2014 FNMA 39 Comments

    Summary

    • 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
    Apr. 29, 2014 FMCC 26 Comments

    Summary

    • 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
    Apr. 24, 2014 FMCC, MTG, RDN 1 Comment

    Summary

    • 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
    Apr. 11, 2014 FMCC 67 Comments

    Summary

    • 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
    Apr. 9, 2014 FNMA, FMCC 28 Comments

    Summary

    • Shareholders came to DC to represent themselves.
    • Government has overreached their constitutional power.
    • Regulators have breached their fiduciary duties to shareholders.