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Fannie Mae (FNMA)

  • Today, 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%)
  • Fri, Jul. 17, 2:22 AM
    • The Federal Housing Finance Agency discloses it paid two law firms over $373M since 2010 to pursue litigation against 16 banks over MBSs sold to Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) prior to the financial crisis.
    • The figure paid to Quinn Emanuel Urquhart & Sullivan LLP and Kasowitz Benson Torres Friedman LLP amounts to less than 2% of the $18.7B obtained by the U.S. regulator through settlements and judgments.
  • Wed, Jul. 15, 8:56 AM
  • Mon, Jul. 6, 11:51 AM
    • Acknowledging declines in both the Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) common and preferred since AIG's courtroom victory over the U.S., Fairholme Capital's Daniel Schmerin nevertheless calls the ruling helpful for GSE investors for pointing out the government can exceed its authority even in a time of financial crisis.
    • "There is no question that Fannie's and Freddie's claims-paying ability was intact throughout all relevant times," says Schmerin. "[The government] required the companies to take excessive loan-loss provisions."
    • " It is utterly surprising to any observer that our government, the federal government of the U.S. would engage in any action that so blatantly expropriated property and de facto nationalized the two largest financial institutions in the nation, and that they’ve done this under the guise of a conservatorship."
  • Wed, Jul. 1, 12:59 PM
    • The salaries of Fannie Mae (OTCQB:FNMA +1.5%) CEO Timothy Mayopoulos and Freddie Mac (OTCQB:FMCC +0.5%) CEO Donald Layton have been capped at $600K over the past two years, but - over the objections of Congress and Treasury - FHFA Director Mel Watt has approved pay of $4M annually, effective today.
    • In a statement, Watt cites retention needs, and Fannie's Mayopouloshas in the past raised his concerns over his pay with the company board and the FHFA.
  • 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, 12:08 PM
  • Mon, Jun. 15, 11:57 AM
    • Former AIG chief Hank Greenberg won his suit against the government over its bailout of his company. He was, however, awarded no damages.
    • Still, the victory over Uncle Sam has to give a bit more hope to Fannie Mae (OTCQB:FNMA +2%) and Freddie Mac (OTCQB:FMCC +2.1%) investors.
  • Tue, Jun. 9, 7:54 AM
    • Taking a new line of attack, the government has asked a federal court to dismiss a lawsuit filed by Fairholme Funds over Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC).
    • According to the government plea, Fairholme purchased its shares in the GSEs after implementation of Treasury's 2012 arrangement to sweep all the GSE profits. The government points out a federal court ruled a developer couldn't sue over an environmental regulation because it purchased the land in question after an EPA decision ended any chance of development.
    • Source: WSJ
  • Thu, May 21, 1:02 PM
    • Fannie Mae (OTCQB:FNMA) chief economist Doug Duncan sees 2015 single-family mortgage originations of $759B, up 8% from his forecast at the start of the year. Were originations to hit that level, they would be up 12% from 2014.
    • "Purchase mortgage applications have moved up consistently for a couple of months,” says Duncan.
    • Previously: Housing starts jump in April (May 19)
  • Mon, May 18, 3:21 PM
    • A privatized Fannie Mae (OTCQB:FNMA +0.8%) and Freddie Mac (OTCQB:FMCC +1.2%) would likely have to boost their capital, meaning higher fees and costs being passed along to borrowers, say the Urban Institute's Jim Parrott and Moody's Mark Zandi in a report titled, "Privatizing Fannie and Freddie: Be Careful what you ask for."
    • They see mortgage rates rising by as much as 97 basis points in the wake of privatization, or higher rates and a combination of less lending. Either way, the impact on home-ownership would be a negative one.
  • Tue, May 12, 2:45 AM
    • "The magnitude of enormous," declared U.S. Judge Denise Cote, ruling that Nomura (NYSE:NMR) and RBS made false statements in selling MBSs to Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) before the financial crisis.
    • The two banks have been the only ones out of 18 financial firms that took their case to trial, arguing that it was the housing crash, and not deceptive loan documents, that caused the bonds to collapse.
    • The other firms — including Goldman Sachs and Bank of America — settled, together paying nearly $18B in penalties.
    • Previously: Nomura wants day in court over mortgages (Mar. 16 2015)
  • Thu, May 7, 9:46 AM
    • Q1 net income of $1.9B vs. $5.3B a year ago. Comprehensive income of $1.8B will be forwarded to the U.S. Treasury, bringing the total paid to $138.2B vs. draws of $116.1B.
    • Single-family serious delinquency rate of 1.78% down 14 basis points from Q4.
    • Quarterly report
    • OTCQB:FNMA -1.4%
  • Thu, May 7, 8:26 AM
  • Wed, May 6, 1:11 PM
    • The FHFA in January set a $30M annual cap on the amount of apartment mortgages Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC +0.4%) could back, but - with that limit set to be hit in Q3 - the agency is set to loosen that restriction, according to Bloomberg.
    • Without such a move, the two would have to begin cutting back on business - raising costs and limiting access for borrowers. Already, the two have been raising interest rates to try and slow the pace of activity.
    • Among the options for the FHFA would be simply raising the caps (sounds too simple). Also being considered would be broadening certain criteria to make more mortgages exempt from the limit.
    • Walker & Dunlop (WD +18.4%) is sharply higher on the session after reporting a big Q1, but surely won't mind hearing this news. Other commercial loan originators like HFF (NYSE:HF), iStar Financial (NYSE:STAR), and Ladder Capital (NYSE:LADR) may have interest as well.
    • Previously: Walker & Dunlop +7.2%: "The wave has hit" (May 6)
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  • Thu, Apr. 30, 12:52 PM
    • Under the FHFA's severely adverse scenario - unemployment spiking to 10% in a year alongside a plunge in economic growth - Fannie Mae (OTCQB:FNMA +1.9%) and Freddie Mac (OTCQB:FMCC +2.3%) could need to draw as much as $160B from Treasury to stay afloat. Last year's stress test capped the max draw at $180B.
    • Thanks to prior deals with Treasury, the two mortgage giants have funds available to them that are larger than the projected losses.
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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