Fannie Mae (QB) (FNMA) News

Word on the street is that each JPS is converting to 500 shares of common. $25 PAR / 5 cents = 500 shares.

Rumor is a new P share being worked on and old Ps are cancelled and paid par.

The end.

Y'all remember who's waiting at the top of the Three Fifty Wall right?

But it's so, so much more than just
a banana and a piece of duct taped to a wall

FOFreddie, point out to this board where is "maximize profits for taxpayers" written in the Charter Act? Specifically, in this provision entitled Fee Limitation of the United States:

https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/aboutus/pdf/fm-amended-charter.pdf

The DJT Letter to Rand Paul mentions the sale of the UST Stake - DJT has already laid out the gameplan. IMHO the best case for common is an undiluted 20 pct. I am assuming 8% post dilution and a conservative $ 14 price target - hopefully more but want to be realistically opportunistic.. Most JPS have a 3X potential - Common maybe 5X? Hopefully more but not more than 20%. I am assuming a consensual JPS conversion and some sale of new equity and that is why I am assuming an 8% stake for common. As I mentioned keep your common because it should be at least 60% owned by institutions and the multiple expansion will happen over time until it is fully distributed to institutional ownership.

Best legal outcome for common is the Bryndon Fisher derivative action but SCOTUS has not decided on CERT yet.

Federal Statute

It’s bad faith and unfair dealing when the Regulator is authorized to pay down the Senior Preferred Stock and sent the Net Worth without the pay down option. The FHFA Director doesn’t need the Treasury approval to pay down the Senior Preferred Stock the Director has the authority from Congress written in HERA:

HOUSING AND ECONOMIC RECOVERY ACT OF 2008

RESTRICTION ON CAPITAL DISTRIBUTIONS.— page 2731
‘‘(1) IN GENERAL.—A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized. The exception.

Quote: “Page 2732

EXCEPTION.—Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition— ‘‘(A) is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and ‘‘(B) will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.’’.

NOTE: REPURCHASE, REDEEM, RETIRE...

WILL REDUCE THE FINANCIAL OBLIGATIONS OF THE REGULATED ENTITY.

Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf

In essence allows the trustees of Fannie and Freddie to go to the market at any time to raise new capital, including new capital with lower dividend coupons, to buy back the Treasury’s senior preferred. Any loyal conservator of Fannie and Freddie would take advantage of this refinancing option to end the bailout arrangement, by paying off the senior preferred in full. The Treasury did not take a Perpetual Equity Investment in the enterprises, the Treasury stated a temporary investment period!

FOFreddie, you’re suggesting the Treasury continue violating Federal Statutes. Why do you do that?

“Maybe using the sale of the UST Stake to pay for the " No Tax on Tips" and "No Tax on Overtime" promises?”

Sale what stake? The Treasury has collected $301 billion from the Shareholders. Kindly, stop encouraging theft.

You need to stop encouraging bovine excrement lies.

Sell what stake?? Their EQUITY STAKE.

Plus a million in Fees. 6.2 million in the end. Some crypto idiot. A fool and his money are soon parted. trump is the best example to prove this simple truism.

The Treas. pick will be whoever pledges loyalty AKA the biggest sycophant in the running, supports excessive tariffs AKA tax on the goods we will have to buy from around the world, and can somehow sell this to the market that it's all good. If you wanna buy your junk from China etc... best do it sooner than later. So will the biggest knee bender please step forward so we can all bet accordingly.

A banana and a piece of duct taped to a wall sold for $5.2 million so at this point whoever he hires I’m sure will be given proper instruction. I’m good with anybody.

This world is bananas

.

FOFreddie, you’re suggesting the Treasury continue violating Federal Statutes. Why do you do that?

“Maybe using the sale of the UST Stake to pay for the " No Tax on Tips" and "No Tax on Overtime" promises?”

Sale what stake? The Treasury has collected $301 billion from the Shareholders. Kindly, stop encouraging theft.

OMG it's pins and needles.

Add to that the giveaways for reduced cost this, that and the other things. OMG. We would be at the mandated 2.5% by now if they weren't giving so much away.

Who ever gets appointed we need to get the big whales like Ackman to rub the back of those who get appointed and and get F and F released. 15 years that many of us have been holding and adding to Fannie is long enough. People have passed away so lets at least have the children of those who have passed away receive the benefits of a free Fannie and Freddie. Nothing wrong with giving those newly appointed a little gift of say around 100 Million to you know get the process going a bit faster. It's all part of Americana and our great American wall street tradition.

Comon skeptic. We all know corruption and bribes is just part of Americana. It's part of our great American tradition. I know you love your Dear leader trump but trust me show him 100 Million Dollars and he will be releasing F and F faster than he pardons and releases those so called patriots from Jan 6. just show him the money. Lets get F and Fa out of jail party and make some money.

Scoop: Sources close to the @realDonaldTrump transition team say @USTreasury pick has been made and announcement is imminent. Developing


https://x.com/cgasparino/status/1859636155865526759?s=46&t=L_hszGlrG7Qfo9Ksmln_mQ

Well there is alot of great investments that buffet doesn't own. That he missed out on. I think he will probably get in once F and F are free which will be fine because by then I can sell him my shares for $300 per share.

Yes - Warsh is probably the lease favorable - also - I would think DJT would want to appoint him to replace Powell. Has anyone heard about the possibility of an Exit being part of a Budget Reconciliation? Maybe using the sale of the UST Stake to pay for the " No Tax on Tips" and "No Tax on Overtime" promises? Would seem to be a political home run?

He needed to sell there shares to there favorite cousin.

Do any of them own shares in Fannie ? Thats what I would like to know.

We definitely do not want Warsh.

Thanks Lordsmoney - interesting that Bessent is on top again. Dont you think he would do whatever DJT wanted on the GSEs?

In the Fannie 10-k they ( FHFA ) are giving away ludicrous bonuses in cash that is against the mandate of the Conservatorship document.
Don’t look because it will make you furious.

Preserve and conserve no such a thing.

“and proceed with a recapitalization”. Ha
Return the stolen money and the companies are recapitalized.

Rule of Law Guy - email ...

How Sticky is the ERCF ?

Will the new FHFA Director Be Bound By It?

Rule Of Law Guy - Nov 21

I want to alert my readers to a recent WSJ Op-Ed by DOGErs Musk/Ramaswamy re whether a new Trump Agency Director will have to live with the regulatory framework that the new Director inherits, or go through the APA notice and comment process to material revise it (normally, a lengthy process):

“DOGE will work with legal experts embedded in government agencies, aided by advanced technology, to apply these rulings [two recent SCOTUS decisions re major questions doctrine/no more Chevron deference] to federal regulations enacted by such agencies. DOGE will present this list of regulations to President Trump, who can, by executive action, immediately pause the enforcement of those regulations and initiate the process for review and rescission. This would liberate individuals and businesses from illicit regulations never passed by Congress and stimulate the U.S. economy.”

See https://www.wsj.com/opinion/musk-and-ramaswamy-the-doge-plan-to-reform-government-supreme-court-guidance-end-executive-power-grab-fa51c020?st=kFBdoF&reflink=desktopwebshare_permalink (paywall should be removed)

So under this theory, new FHFA Director working with DOGE could propose to POTUS that the ERCF be rescinded, on the basis that the ERCF finds no substantive support from Congress or HERA for its excessive conservatism and add-on capital buffers.

This would permit the new FHFA Director to have POTUS rescind the ERCF on Day 1, and proceed with a recapitalization and conservatorship release under the HERA statutory capital provision, which is essentially 2.5% of the GSE’s assets. The new FHFA Director could then propose a replacement capital regulatory framework at his/her leisure.

This would accelerate the GSE recapitalization and conservatorship release, should the new FHFA Director and DOGE go down this path.

Now more than EVER, "now" being once the first week of trading after the election settled in, where we had tens-of-millions of shares "trading," mostly buying, you will see MASSIVE manipulation as in the past 3 or 4 trading days. The manipulators know you do NOT get in the front of a moving freight train - you wait for it to slow down a little. That slowing down is this settling in period of the politicos in D.C. positioning themselves on one side or the other which makes the twins ripe for manipulation. Do NOT think for a moment there aren't the treasury, FHFA, and financial establishment killers in on this manipulation. Hiding what has transpired is worth a lot of money to them. I am hopeful Paulson and Ackman are closely involved in FnF related administrative picks to help Trump (and us) avoid the pitfalls.

Not only reduce corporate tax 21-16% elimination of the federal income tax on individuals would put an enormous amount of monies into the economy.

McKernan also worked for Toomey who was pro-release. He is another Tennessee guy. I could see him at FHFA and Calabria as an UnderSecretary at UST. All of the UST prospects should be fine. Warsh's father in Law is Lauder of Este Lauder who are big time investors. Rowan started a hedge fund and Haggerty is a pro-exit Senator who probably is a friend to Palagria. This seems like this is shaping up well for Palagria who has worked real hard for release for over a decade.

Well, why would Paulson decline then if it's going to .03 cents like you say? Seems like he would just be Treasury Secretary
Paulson does not own commons...he has a shit ton of preferreds

Fannie Mae and Freddie Mac
Up, Up, Up
Sing It - Up Up Up - Yup

Call in and mention it, will carry major super nova weight

U R Right - Wingsjr - except the first casualty was Bear Stearns first with the Barrons Memo leak;
https://fcic-static.law.stanford.edu/cdn_media/fcic-testimony/2007-2008_Fannie_Mae_Timeline_and_Supporting_Documents.pdf
While Mudd was trying to raise capital in HK -the NEC leaked the For Your Eyes Only Memo to Barrons over the March 8, 2008 weekend and Bear was out of business by the following Friday.

Give us the 3R treatment we're looking for AND reduce capital Gains to 15%. 💓

I sure bet it would move things along quicker if the GSEs couldn't, by law, give away any freebies while in conservatorship. It sure as hell makes sense that they shouldn't be giving anything away as they are forced to accrue a certain amount of money in order to be released and these giveaways slows that progress. What a joke all of this is. We all could of course suggest this to our Congressman but that would fall on deaf ears.

Also DJT reduce corporate tax 21-16 increasing bottom line by 6%

Big big money.

$CNBC TV - $Housing is up $NOW on $Squawk on the $STREET !

just need the RIGHT MENTION of GSE RELEASE to begin the $SUPER $NOVA !

Let them know Navy

$Booooom ! - Freddie Mac To Bring $Tax-Exempt $Loan

$CMBS $Product to $Municipal $Investors

New Approach Will Increase Liquidity in CMBS and Municipal Markets
and Support Affordable Multifamily Housing

November 21, 2024 10:30 ET - Source: Freddie Mac

MCLEAN, Va., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily today announced a new CUSIP registration capability to better align its ML-Deal offerings for both commercial mortgage-backed securities and municipal bond investors, increasing liquidity across both markets and advancing Freddie Mac’s mission.

The new CUSIP registration capability will allow investors to choose their preferred CUSIP identifier, Mortgage or Municipal, at deal settlement and subsequently exchange their certificates between either of the two CUSIPs through a Freddie Mac approved Broker Dealer.

“This new registration capability streamlines our product to both mortgage and municipal bond investors, which is important to meet market needs and deliver on Freddie Mac’s mission to support affordability, liquidity and stability in the multifamily housing market,” said Robert Koontz, SVP of Multifamily Capital Markets at Freddie Mac. “We look forward to continuing to innovate and advance our offerings to respond to market changes while keeping a clear focus on our mission.”

Since 2017, Freddie Mac’s ML program has provided the opportunity for investors to invest in predominantly tax-exempt securities secured by loans on completed, occupied, and stabilized affordable housing properties. ML-Deals are backed by tax-exempt loans related to properties receiving new-issue 4% low-income housing tax credits (LIHTC).

This feature will start with ML-27 and is anticipated to be available for all future ML Deals. ML-27 is expected to go to market the week of December 9th with an issuance size of approximately $250 million and be designated as Sustainability Bonds.

ML-Deals with this feature will include two sets of Structured Pass-Through Certificates (SPCs), one registered under Freddie Mac’s corporate issuer 144A CUSIP identifier and another registered under municipal issuer 144A CUSIP identifier. The underlying loan characteristics and structure for both will be identical. Although the underlying loans are obligations of various state and local entities, the state and local governmental entities are not directly obligated on the SPCs and do not issue the SPCs. Accordingly, the SPCs are not municipal securities as defined in Section (a)(29) of the Securities Exchange Act of 1934 and Freddie Mac is not a municipal issuer.

Click here to learn more about Freddie Mac ML Certificates. M-Deals and ML-Deals (freddiemac.com)

Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More:
Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Melissa Silverman
703-388-7037
Melissa_Silverman@FreddieMac.com

WIPE OUT (or nominal repurchase) of the Fannie / Freddie WARRANTS ! -

GOV has been REPAID in FULL Plus + 10% INTEREST = $110 BILLION

WARRANTS were Collateral for LOAN REPAYMENT !

GOVT NOT ENTITLED to ANYMORE from Fannie / Freddie !

It appears Warsh is no good for us.  Cross him off the list please.

Thank you - excellent find and reasonable article

ANYONE ---- seriously - take a shot at explaining to me how GOV makes BILLIONS without diluting us (note - IMO - reasonable dilution that might raise say 100B+ for GOV leaves us with 15-30 dollar PPS). But does the below make any sense at all without dilution

The argument for doing it is that selling the government’s stakes in the companies is not only written into law but could also generate billions that could be used to reduce the deficit and return money to taxpayers.

very serious question and IMO it holds for common and JPS

Mod friends sticky

I have held long enough to remember when R based Conservatives were inches from winding us down to zero

The word conservative is often abused and has become meaningless in many places and for sure with F and F

https://x.com/ricknagra/status/1859615327161622762?s=46&t=xLP2LlWgJrEMUZZ7Fum-nA

??
You lost me
This is no longer an election trade
NOW it is 100% political - unless you think the courts will resolve this - it is all in the hands of politicians and those who take orders from those politicians

DID ANY OF YOU READ PAST THE HEADLINE OF THE BS YAHOO GARBAGE? I don’t want any of these idiot mentioned or contributing to this article anywhere near Fannie and Freddie except the one mentioned in the title.

We all want EXIT - FREEDOM - end of CONSERVATORSHIP and exit from and freedom from low common and JPS equity prices

We should all keep in mind - exit and freedom and end of conservatorship does not automatically lead to higher currently held stock PPS

Multiple ways - tons of ways - to exit that chop our heads off as we use the EXIT door

Details matter

Anybody that says Hank Paulson saved anything during the 2008 financial crisis is a shill or hugely ignorant. Hank Paulson allowing Lehman Bro to go bankrupt, when UBS offered to buy them, because they were the number one rival of Goldman Sachs, CAUSED THE PANIC and the collapse in the housing market.