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Federal National Mortgage Association (FNMA) CEO Hugh Frater on Q1 2020 Results - Earnings Call Transcript

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Federal National Mortgage Association (OTCQB:FNMA) Q1 2020 Earnings Conference Call May 1, 2020 8:00 AM ET

Company Participants

Pete Bakel - Director of External Communications

Hugh Frater - Chief Executive Officer

Celeste Brown - Chief Financial Officer

Conference Call Participants

Bonnie Sinnock - Arizent

Dennis Hollier - Inside Mortgage Finance


Good day, and welcome to the Fannie Mae First Quarter 2020 Financial Results Media Call. Today’s conference is being recorded.

I'll now turn it over to your host, Pete Bakel, Fannie Mae’s, Director of External Communications.

Pete Bakel

Thank you. Hello, everyone. And thank you all for joining today’s media call to discuss Fannie Mae’s first quarter 2020 financial results.

Please note that this call may include forward-looking statements, including statements related to the company's response to the Covid-19 pandemic and its effects. Economic and housing market conditions, the company’s future financial and business results and its future financial condition and capital requirements and the credit quality and performance of its book. Future events may turn out to be very different from these statements. The risk factors and forward-looking statements sections of the company’s first quarter 2020 Form 10-Q filed today describe factors that may lead to different results.

As a reminder, this call is being recorded by Fannie Mae, and the recording may be posted on the company’s website. We ask that you do not record this call for public broadcast and that you do not publish any full transcript.

I’d now like to turn the call over to Fannie Mae Chief Executive Officer, Hugh Frater; and Chief Financial Officer, Celeste Mellet Brown.

Hugh Frater

Thanks Pete. Good morning and thank you for joining today's call to discuss Fannie Mae's first quarter results. As we all know this is an extraordinary time for our country for the housing market and

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Comments (3)

brianthatisbrian profile picture
JosephS Tuesday, 05/12/20 03:51:53 PM

Re: tutt1126 post# 608606 0

Post # 608650 of 608656

Rumor!!! Common shares will have massive amounts of dilution to recap the companies.

Remember, Calabria said it was always his OPINION there would be massive dilution. Well, a monkey has an opinion on bananas. And dogs have opinions about the delicious smell of each other butts.





What a great way to keep the price of the common shares down. And, later, Calabria can say: "Welp. And gee willikers. I did use the word 'opinion.'
brianthatisbrian profile picture
The Journal of Lobbyist Spin

7 May 2o2o

Wagging the GSEs

Step 1 Poison the Stream with Misinformation

David Stevens: Jack, it's David Stevens.

Jack Navarro: Hey, David.

David Stevens: Listen. We're having some trouble with Calabria over at FHFA. We want him
to hand us a bunch of free money but he is being uncooperative. So, we're
gonna engineer a little end-around. What we're going to do is start the ball in
the middle with guys like you. During your conference call, we want you to
say this: 'Fannie and Freddie are currently planning for a program were we
get paid $500 incentive fee for forebearances.'

Jack Navarro: I haven't heard anything like that.

David Stevens: Of course not, I just made it up. What we're doing is to have the CEOs of
the mortgage services tell the same lie. After the group of you poisons
the stream of information then we can engineer others to confront FHFA
and start demanding they honor their agreement.

Jack Navarro: What agreement?

David Stevens: The one I just invented! Do me a favor, if I send ya 50 bucks, will ya just
repeat that?!

Jack Navarro: Will do.

Step 2 Make Sure to Poison All Streams

Chris Whalen: Hey David, did you talk to Jack Navarro over at NRZ?

David Stevens: Yes. And I got all the CEOs of the other servicers on my list to agree to
say the same thing in their conference call.

Chris Whalen: OK. Good. I got all the ones on the list you gave me. So, they'll all start
repeating the same lie and in a couple of days we'll spin this on up to FHFA
and demand they honor their agreement. You know, the one they never

David Stevens: (laughs) I know, right. Could the American People be any more stupid?

Chris Whalen: I think that's impossible.

David Stevens: Well, FHFA, it's your own damned fault. You wouldn't just hand us the
free money so we had to come up with another way to get it. God, I
love bein a Ho for free money.

Chris Whalen: Me too!

David Stevens: See ya later tonight at the Men's Club. I think Mr. Clinton is gonna be there

Chris Whalen: Bill?!

David Stevens: No, Hillary. It is a Men's Club. Duh.

Chris Whalen: You get them nekked pictures of me I texted to ya?

David Stevens: Oh, yeah. Gonna come in...uh...handy later.

Chris Whalen uumpt!

Step 3 Taking the Poison Seriously, Others Advance the Spin

joshua rosner

Dear @FHFA @FannieMae @Freddiemac NRZ made the following statement. Is this true? Does it create perverse incentives? Was this approved by rulemaking?

Alec Mazo

Replying to @JoshRosner

@SleipnirPerkins and 3 others

Isn’t this for forbearance loans to be processed into modifications with the delayed payment tacked on to the end of the mortgage? Designed specifically to avoid balloons in 6-12 months... my understanding. If it’s $500 to put more people into forbearance, disaster incentive

Eric Kaplan

Replying to @JoshRosner

@FHFA and 2 others

Need details. HAMP had incentives. Fan/Fred sets srvcng fee scheds w/ special srvcrs so it seems this falls under abil to control vendor payments. Don’t see why incentive fee needed b/c CARES requires forbearance anyway. Could reflect extra cost of loss mitigation. We’ll see....

Foreclosure Nation

Replying to @JoshRosner

@Eva2122 and 3 others

Both parties sell us out...this time it’s under trump and Mnuchin, who demand no oversight at all.
What a bunch of BS. What no one asked is do they know it the Treasury is going to set them free? They alluded to Treasury making them give away free money to banks to keep them solvent. But nothing about retaining earnings or when this bloody conservatorship is theft ends! If Biden gets in you can kiss any chances of seeing one GD $1.
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