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Fannie Mae (FNMA)

  • Mon, Aug. 31, 2:36 PM
    • The "thin reed" upon which speculation of movement towards a settlement rests, writes John Carney, is a request by lawyers from the Office of White House Counsel for access to heavily redacted documents. While the government didn't explain the reasons for the motion, the involvement of this set of lawyers (instead of the DOJ attorneys working the case) has lead some to believe the Administration wants to settle.
    • If the White House wanted to settle, says Carney, DOJ lawyers would almost certainly handle the negotiations, meaning no need to bring in another set of attorneys. Instead, continues Carney, it's standard procedure for White House lawyers to review information in litigation referencing the White House.
    • Carney: "The government has scored victories at almost every turn in the Fannie-Freddie litigation, giving it little motivation to seek a truce now."
    • Nevertheless, Fannie (OTCQB:FNMA +5.3%) and Freddie (OTCQB:FMCC +5.5%) continue to rally.
    | Mon, Aug. 31, 2:36 PM | 33 Comments
  • Tue, Aug. 4, 11:12 AM
    • Q2 comprehensive income of $3.9M vs. $746M in Q1. Net interest income of $4M vs. $3.6M. Derivative gains of $3.1B vs. a loss of $2.4B in Q1.
    • The company will write a check to Treasury for $3.9B, bringing the total paid to $96.5B. The draw (not reduced by any payments made) remains at $71.3B.
    • Single-family purchase volume of $101.2B up about $20B from Q1. Multifamily purchase volume of $13.1B up more than 30%.
    • Full results
    • Previously: Freddie Mac reports Q2 results (Aug. 4)
    • OTCQB:FMCC +6%, Fannie Mae (OTCQB:FNMA +5.5%)
    | Tue, Aug. 4, 11:12 AM | 11 Comments
  • Wed, Jul. 15, 8:56 AM
    | Wed, Jul. 15, 8:56 AM | 22 Comments
  • Mon, Jun. 15, 3:48 PM
    • "We think this knee-jerk reaction is short-sighted," says KBW's Brian Gardner, reacting to the jump in the stock prices of Fannie Mae (OTCQB:FNMA +2.6%) and Freddie Mac (OTCQB:FMCC +2.3%) following the government's loss in the AIG bailout case. Gardner reminds that the GSEs are federally-created entities operating under federal charters, giving the government stronger legal cover for its bailout.
    • Compass Point's Isaac Boltansky notes the AIG case and GSE case are based on entirely different statutes, making the implications for the GSEs "limited at best."
    • Previously: Judge rebukes government in AIG case (June 15)
    • Previously: Fannie Mae and Freddie Mac on the move after Greenberg wins AIG suit (June 15)
    | Mon, Jun. 15, 3:48 PM | 22 Comments
  • Mon, Jun. 15, 12:08 PM
    | Mon, Jun. 15, 12:08 PM | 52 Comments
  • Tue, Feb. 17, 10:15 AM
    • A weekend piece in the NYT brings to light the extraordinary secrecy claims the government is making to prevent it from having to produce documents concerning the decision to expropriate all profits of Fannie Mae (OTCQB:FNMA +12%) and Freddie Mac (OTCQB:FMCC +13.6%) in late-summer 2012.
    • At issue is exactly what the Obama administration - in the midst of an election battle and eyeing surprise profits at the GSEs - had in mind when it altered the bailout agreement and ordered the sweep.
    • More fuel: Hank Greenberg's suit against the government over the AIG could be tilting in his favor. The "Greenberg Trade," says Charlie Gasparino, is a favorite of money managers betting that if Greenberg wins, it bodes well for those fighting the government over Frannie.
    • The two stocks are higher by more than 30% over the past couple of sessions.
    | Tue, Feb. 17, 10:15 AM | 28 Comments
  • Dec. 17, 2014, 11:30 AM
    • Appearing on Bloomberg TV, Bill Ackman says he added "meaningfully" to his positions in Fannie Mae (OTCQB:FNMA +6.8%) and Freddie Mac (OTCQB:FMCC +6.5%) last week.
    | Dec. 17, 2014, 11:30 AM | 15 Comments
  • Nov. 19, 2014, 11:50 AM
    • "Everyone agrees that conservatorship cannot continue forever," says Senator Tim Johnson in prepared remarks for a Senate Banking Committee hearing on the GSEs. "If Congress cannot agree on a smooth, more certain path forward, I urge you, (FHFA) Director Watt, to engage the Treasury Department in talks to end the conservatorship.”
    • Watt: "Conservatorship cannot, should not be a permanent state."
    • Fannie Mae (OTCQB:FNMA +10.6%), Freddie Mac (OTCQB:FMCC +9%)
    | Nov. 19, 2014, 11:50 AM | 17 Comments
  • Oct. 3, 2014, 1:09 PM
    | Oct. 3, 2014, 1:09 PM | 16 Comments
  • Oct. 2, 2014, 9:59 AM
    • The 52-page ruling from U.S. District Judge Royce Lamberth "meticulously demolishes" every argument made by investors claiming Treasury and the FHFA acted illegally when altering Fannie Mae's (OTCQB:FNMA -10%) and Freddie Mac's (OTCQB:FMCC -7.3%) bailout agreement in 2012.
    • The new agreement, says Lamberth, is clearly within the bounds of authority Congress granted in 2008 when passing a law overhauling oversight of the GSEs.
    • Yes, Lamberth's ruling doesn't directly affect the dozens of other pending lawsuits, but now plaintiff's attorneys will have to start out explaining how Lamberth got things wrong.
    • Previously: Fannie and Freddie plunge after investor lawsuit dismissed
    | Oct. 2, 2014, 9:59 AM | 31 Comments
  • Oct. 1, 2014, 9:46 AM
    • The first among about 20 cases still to be decided, a U.S. Federal judge rejected investor claims, and found the government's 2012 amendment helping itself to nearly all Fannie Mae (OTCQB:FNMA -34.9%) and Freddie Mac (OTCQB:FMCC -33%) profits is kosher.
    | Oct. 1, 2014, 9:46 AM | 15 Comments
  • Aug. 27, 2014, 10:27 AM
    • Ideas Fannie Mae (OTCQB:FNMA +3.1%) is thinking about a return to the Big Board are fueled by the GSE's job posting for a corporate attorney. Among the key job functions: Providing advice on NYSE listing requirements.
    • Freddie Mac (OTCQB:FMCC +1.6%)
    | Aug. 27, 2014, 10:27 AM | 10 Comments
  • Aug. 14, 2014, 3:50 PM
    • The GSEs have their tails in the air on a report shareholders - led by Bill Ackman's Pershing Square - plan tomorrow to file the latest in a string of lawsuits against the government for requisitioning the profits of the two, reports The Street's Dan Freed.
    • Pershing Square is by far the largest non-government owner of common stock of Fannie Mae (OTCQB:FNMA +3.8%) and Freddie Mac (OTCQB:FMCC +4.5%), and numerous individual investors will join the suit. Another large holder - Bruce Berkowitz's Fairholme Capital - has much of its stake tied up in the preferred shares of the companies.
    | Aug. 14, 2014, 3:50 PM | 10 Comments
  • Jul. 11, 2014, 7:15 AM
    • A check of the mortgage insurers the morning after the FHFA released the proposed Private Mortgage Insurer Eligibility Requirements (PMIERs) finds Radian (RDN) lower by 2.8%, MGIC (MTG) by 2.6%, and no action in Genworth (GNW), Essent Group (ESNT), and NMI Holdings (NMIH). The revised PMIERs would require higher capital standards on the mortgage insurers Fannie Mae (FNMA) and Freddie Mac (FMCC) do business with.
    • The new rules are open for comment until September 8, and Radian expects to give the FHFA an earful, including noting the new capital requirements "are more onerous than the company's historical default experience suggests would be needed to withstand a severe stress event." The proposed PMIERs, says Radian, are also not consistent with the FHFA's goal of expanding access to mortgage credit by boosting the role of private capital in the mortgage market.
    • Radian also notes it is likely to be January 2017 before compliance with any new rules would be required.
    | Jul. 11, 2014, 7:15 AM | Comment!
  • Mar. 18, 2014, 1:13 PM
    • Fannie Mae (FNMA -15.7%) and Freddie Mac (FMCC -15.5%) get just a little sell-side love, with KBW's Bose George boosting his price targets on both to $2 from $0, though he keeps an Underperform rating on the duo.
    • The PT change "incorporate(s) the possibility of a combination of a legal victory for shareholders combined with a lack of action on both the regulatory and legislative fronts that hurts the value of the GSEs," says George, who may be the only sell-sider still covering the GSEs after they were put into conservatorship in 2008.
    | Mar. 18, 2014, 1:13 PM | 13 Comments
  • Mar. 13, 2014, 11:20 AM
    • “It’s hard to find any reasonable outcome that’s really terrible for the preferreds, given what I perceive to be the value of the business that’s already there," says portfolio manager Jeffrey Lewis, an owner of the shares. Investors in the common stock, however, are making a bet Fannie Mae (FNMA +12.4%) and Freddie Mac (FMCC +13.4%) will be allowed to become dominating private companies again and keep their profits.
    • It's up to the courts to decide how investors will be treated, says Sen. Mike Crapo, who co-wrote the bill to wind the GSEs down. "We are not necessarily going to dictate the outcome."
    • As for whether a bill actually becomes law anytime soon, former Senate banking panel aide Mark Calabria gives it maybe a 10% chance of getting to the president's desk this year. The dim prospects look to be giving a boost to the common shares today.
    | Mar. 13, 2014, 11:20 AM | 11 Comments
FNMA vs. ETF Alternatives
Company Description
Fannie Mae is a government-sponsored enterprise that was chartered by Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold.
Sector: Financial
Industry: Savings & Loans
Country: United States