Fannie Mae (QB) (FNMAG) News

The NWS dividends were specifically allowed by the Supreme Court even though FnF were critically undercapitalized; they cited 12 USC 4617(b)(2)(J)(ii).
False. Were they actually even challenged? Are you suggesting that the Director can pay jr pref and common dividends right now if they wanted to?

No. FnF are not even close to being capitalized. This is why they remain in conservatorship. All forms of FnF's regulatory capital (core, Tier 1, CET1) are hugely negative. The funding commitment is not capital.

I didn't say anything about regulatory capital. The circular draws were what was keeping the dividends running and what allowed in part 'dividends' to be paid in cash despite their deficiency in 'regulatory' capital. Tell me what does the payment of dividends out of 'funds legally available' mean? That is a clause implicit or explicit in dividend paying stock.

No. The original SPSPAs, along with the first and second amendments to the SPSPAs, established a limited backstop. If that is exhausted and FnF still have negative net worth for 60 days then FHFA would be forced by law to place them in receivership.
The contracts were amended to an 'unlimited' amount in 2012?
The various letter agreements that have allowed FnF to retain earnings have all been agreed to by both FHFA and Treasury.
Of course. Calabria wanted more mnuchin didn't give it so he had to take what he could.

That statement applies to all of Rodney's legal theories.
Rodney is correct on several matters and not way out there like others.

I would be overjoyed at such a prospect but let's just say I'm not holding my breath.

Unless of course Scott Bessent appears on FOX morning news with our good friend Maria Bartiromo. She is virtually guaranteed to ask Bessent about the GSEs unless that topic is off the table. I have been following Bartiromo closely on X and so far nothing yet. I firmly believe though it will be announced shortly. I know Bartiromo very well. Not personally of course LOL.

Rumor mill can only take you so far. Used to be 4,5, or even 6. Now, its 2.50-3.50.
I'm not expecting anything until Jan.20 at the earliest. Relax. All the rest is just hypsters
and traders noise.

Rumor mill can only take you so far. Used to be 4,5, or even 6. Now, its 2.50-3.50.
I'm not expecting anything until Jan.20 at the earliest. Relax. All the rest is just hypsters
and traders noise.

The only thing brewing in the background is the coffee machine.

Buy more. Sell all of your other positions and go all in.

The finish today makes you believe that something is happening behind the scenes.

Government does not own the companies. All they have is illegal warrants and no voting or ownership rights.

Or a call from Treasury to kickstart the release.

Our Attorneys should file, or move for,
an Extraordinary Writ to force him
to release our Award:
An Extraordinary Writ is a rare order from a higher court that provides relief when other options are unavailable. It's a discretionary writ, meaning it's not a matter of right, and the court has the discretion to grant it.

He's trying to outdo Sweeney.

I should have stated it more clearly. Not in ACTUALITY, but in PRACTICALITY.

Right now it's a government owned and run agency

No. They were and still are private corporations owned by the stockholders. And they never were, are not, and never will be "agencies". An agency is an entity of the Government. These are Government Sponsored Enterprises. They are currently under conservatorships that are managed by the Government. The Government never nationalized the companies both for the sake of optics and, most importantly, the public would not see the humor of instantly increasing the Federal debt by about $8-9T. This all might sound like splitting hairs or something, but I am tired of people saying that the Government owns these companies. I saw a couple of videos on UTube where the guy says that the Government currently owns 79.99%, etc.

That being said, we are in a hostage situation where the Government will let us get out of conservatorship in exchange for a piece of the action - a very large piece of the action. I guess then, at least for a short time, you could say that the Government would be majority owner - but owner of what still would be private corporations. Am I off base on this?

Nats

"What’s taking lamberth so long? Last motion filed July 16 what the hell is he doing?"

He's a judge so the question could be asked what does he know about high finance? My guess would be very little so he's sitting there waiting for someone to tell him something and no one has been forthcoming. So, there he sits . . . . . .

We have played that game for many years :)

If one actually had the stock certificates, they could be put in the casket with the body and technically speaking, one would be "taking it with you". I have some stock certificated that went to the grave before I did!

I feel like something is goin on in background we are not aware of. Negotiations?

Right now it's a government owned and run agency. 😭

Unfortunately, you never take it with you ,even if one owns 10 Trillion+ LOL !!

No conflict of interest ever since the government sold it's ownership in these corporations. They're called government sponsored entities because they were created by the government (as opposed to private entrepreneurs) and are still operating under federal charters.

We are still sitting in conservatorship jail.  Maybe JB will also give us a pardon.  Why not ?  He is handing them out like they are going out of style.  May as well get in line you know join the queue.  Can't hurt.

Never thought I'd give a thumbs up to anything Rule of Law Guy has to say. 👍️

FNMA is a gov sponsored agency. Would be A conflict of interest 

https://x.com/timpagliara/status/1864032882940940538?s=46&t=xLP2LlWgJrEMUZZ7Fum-nA

"As someone suggested, get one of the Trumps on F's or F's board."

That can't happen, at present, because shareholders' rights have been suspended and thus, our hands are tied. The BODs of both Fannie and Freddie are "government boards" doing exactly what the government wants them to do. Restore shareholders' rights (out of conservatorships) where we can nominate and vote and we can put you on a board DC Bill as well as all the Trumps, if we wish.

Lol, it does when you have a trillion shares!!

Tru that, but absent whatever Trump interest there is (which could be demonstrably deciding), try making that point to "official Washington.
(Some have been doing that for 18 years with little success.")

https://open.substack.com/pub/ruleoflawguy/p/how-sticky-is-the-ercf-part-ii-consider?r=ckcv2&utm_campaign=post&utm_medium=web

If either of those happened we would go up minimum 100% rather quickly.  Ackman should join the board.  Is he allowed ?  Come to think of it I should join the board.  Maybe Mr Michael should also join since he owns pretty much the whole float by now.

I would also add they are even less likely to lower standards when the gov has LESS control over their activities. The gov (Barney grand and co) were the ones that pushed the twins to lower standards prior to the crisis. Yes the twins were blamed but that is historically inaccurate.

Does that penny change your life? I'm waiting on dollars. 😁

The app on my phone, which is yahoo finance says $2.70.
Charles Schwab says $2.70

Guido makes a good point about Bill Ackman. As a major stock holder, around 10%?, It would be beneficial for him, and common holders, to have a seat on FNMA board of directors. As suggested, a member of the Trump family would be helpful.

Did we close at $2.69 or $2.70 ?  There was also a large buy order around 57,700 shares four seconds after the close.

That's what's happening now, remembering "there is NO BACKSTOP," it's just assumed if any legitimate financial problems (not those political myths made up by the party in power, which is what happened in 2008), the government would step in). But, despite all the GSE money going annually to the Treasury, the relationship is "implicit" not "explicit," like commercial bank deposit insurance.
But, to your question, because of the heavy, well-heeled nature of the GSE opponents, every court issue is a potential decision by SCOTUS, which showed little interest the last time in supporting F&F; in fact, showed a rather significant lack of understanding and history.
That could change if this Administration indicates its support. But, until that happens, I would try and stay away from the courts; as well as a full congressional review, since each chamber has notable GSE enemies (in both parties), i.e. any changes (very simple, reducing the current venal capital standards and, possibly, clarifying the GSE investment authority) should be made through efficient executive action, not slow, grinding legislative action.

Easy. Ackman, the biggest shareholder has the biggest say.

As someone suggested, get one of the Trumps on F's or F's board.

Good Points DC Bill - What do you think about a Consent Decree for Exit leaving the Backstop in Place while Capital is built. First step should be to start paying divs on common and paying the stated divs for JPS prior to Exit as part of the Consent Decree and new Agreement between the FHFA and UST. This will allow the investor base to expand before new secondary offerings for new cap and the sale of the UST stake.

Solid GSE BUYING into the Close -

Lemmings are back to the BUY window ...

I am a proud shareholder my amigo

Wow good piont

The higher the better the stringer the safer

They have never since conception been such a strong company with historically record low delinquencies since 1938
This is what happens when you run a company smartly

And then you have people that say they should stay in cship while h shows how out of tune they really are

I would be so psyched if they could uplist in early 2025 and we could all load an insane amount of calls while we wait for full release details. I just want a nice way to use some leverage here.

Public comments all are CYA; actions speak louder (see MBA's positioning on all recent GSE actions.)
Also, as always with the GSEs, the "Devil is in the details"; what's the capital, and what mission changes (limitations) would the mortgage bankers, commercial bankers, and IBs insist on as a price for their approval?
Turning them loose, only to re-shackle them won't do it.
"It's all about the Benjamins!"
From which group will future GSE income come? It can't be mortgage consumers!
Just think of all of that "fat" in the current mortgage finance process, from home inspections, title searches, to closing costs, etc., which an efficient F&F could reduce.

the whole argument - in a nutshell ... lol
While in Conservatorship the mkt assumes the GSEs
have a total GOVT Guarantee for ALL their Mortgage Loans
if & when they are finally RELEASED from GOVT C'ship

Whalen is saying their Loan quality rating will be downgraded
from "AAA" to "AA" - which is BS cause the GSEs DO NOT HAVE
a written "explicit loan guarantee" - they have always had an "implied"
Govt backed Guarantee - Calabria said HE couldn't get Congress
to BUY IN for the written EXPLICIT LOAN GUARANTEE

Fannie / Freddie are NOT going to suddenly DROP their HIGH LOAN Standards
avg credit score 750 and lots of Equity on existing property or Mortgage INSURANCE !
as soon as they are RELEASED ! - TOTAL BS !

They will OPERATE EXACTLY the SAME they DO EVERYDAY - HIGH LOAN STANDARDS

Good idea; it would add to his personal wealth and all shareholders (both P and C). Try for Eric and/or Ivanka.
I'd even take Barron or Melania!

Wow, go see what just happened with TD TP

I’m buying more

it was just the same Calabria talking points from the

Diana Olnik CNBC Video this morning ...

https://x.com/gerhardtmeyer1/status/1863938735626166440?s=46&t=xLP2LlWgJrEMUZZ7Fum-nA

https://x.com/i/status/1863938735626166440

more coverage interview re airing on cnbc