wdereb79
26 minutes ago
Well, this is a gamble. I believe it's a good bet, but we still have a few more rounds to go. My wife knows where we put every last cent of our money. I put $15,000 into FNMA. That's a lot of money for us, but it is money we could always afford to lose. With that said, FNMA is my BABY! I don't know why. I started researching and saw how the government came in and screwed everyone over. It's like rooting for the underdog in Game 7 of the championship game. Anyway, there was never going to be any hidden purchases of FNMA on my end. Like I said, my wife knows where every cent is lol. She didn't tell me to sell, but she definitely did not want me buying more shares. I could kick myself thinking about those discounted .50 cent prices that I was not allowed to purchase! Damn it woman!!!! Seriously, DAMN IT WOMAN! But . . . I guess I will keep her around for a little while longer. She has put up with all my shenanigans over the years. Anyway, I am currently +130% on my position. It only took over ten years to get here, but I am so happy. I am happy for all those that have stuck this out. There have been some tough times. Bleak times really. Honestly, I don't really have an exit strategy. I don't know if I ever will sell. What can I say . . . I love Fannie. I am going to see how this plays out. I am staying until the end, and I am willing to win or lose it all. LONG AND STRONG!
chxal
40 minutes ago
Another Important Valuation Point(s).....
Two things - in order to prove their "entitlement" to the amount over the $190B + 10% interest and/or any warrants: 1. Govt needs to unseal the documents to prove there was no collusion, malice against shareholders, etc. and let the docs speak for themselves... they will prove if Gov't actually was acting in the best financial interests of their "wards" US- the shareholders or if they conspired just to take our revenues and profits for their own projects, etc. #2 - Govt should explain why the $50 Billion+ in settlements against ALL the big banks, JPM, Goldman, Citi, etc. DID NOT GO TOWARDS EITHER GSE CAPITAL or paydown of $190 B hostage taking.... Explain to the American people why this $50 B+ wasn't given back to the companies, but every penny of it was flushed away.....
navycmdr
1 hour ago
Freddie Mac and ICE Collaboration Offers Lenders Greater Efficiencies When Originating Loans
January 15, 2025 09:00 ET - | Source: Freddie Mac
https://www.globenewswire.com/news-release/2025/01/15/3010082/0/en/Freddie-Mac-and-ICE-Collaboration-Offers-Lenders-Greater-Efficiencies-When-Originating-Loans.html
MCLEAN, Va., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) and Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced enhancements that leverage both companies’ automation technologies to enable lenders to more quickly and efficiently underwrite mortgage loans starting at the point of sale.
“Together, Freddie Mac and ICE have leveraged our organizations’ unique technological strengths to help lenders originate more mortgages in this challenging market,” said Freddie Mac’s Kevin Kauffman, Senior Vice President, Seller Engagement, Single-Family Acquisitions. “The result is empowering lenders to originate more loans eligible for sale to Freddie Mac without changing their workflow. We’re also arming lenders with more detailed information around purchase requirements as well as cost-saving options for first-time homebuyers.”
New enhancements give lenders heightened integrated access to the latest offerings in Loan Product Advisor® (LPA®), Freddie Mac’s automating underwriting system, from within Encompass®, ICE’s widely used digital mortgage lending platform. The Encompass Underwriting Center’s dual AUS feature provides:
Access to Freddie Mac’s LPA ChoiceSM feedback messages, which offer actionable responses to help lenders make faster, informed decisions and turn more Cautions messages to Accepts. Feedback messages include information about debt-to-income ratios, loan-to-value ratios and reserves.
Feedback on whether a given loan is eligible for employment representation and warranty relief.
Access to critical LPA messages highlighting Freddie Mac’s automated collateral evaluation (ACE) and ACE+ PDR appraisal alternatives.
“ICE is actively digitizing mortgage lending; integrating systems, solutions and processes to provide maximum value for lenders and households alike,” said Tim Bowler, President of ICE’s mortgage technology division. “By virtue of this collaboration, Encompass users can now seamlessly access Freddie Mac’s latest LPA offerings as part of their existing workflows. As always, the goal is to increase efficiency, lower costs and help lenders put more qualified borrowers into homes they can afford.”
Freddie Mac’s LPA includes capabilities that help lenders automate the assessment of borrower assets, income and employment while identifying the existence of positive cash flow or consistent rent payment history that could positively impact the risk assessment.
A recent analysis shows that loans originated by lenders leveraging certain Freddie Mac automated offerings are up to four times less likely to produce defects than loans without this technology. Process automation is especially beneficial for documenting income, both in collection and assessment, given that income verification issues account for nearly one-third of all purchase transaction defects.
About Freddie Mac
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
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds, and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges -- including the New York Stock Exchange -- and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024.
MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
ICE MEDIA CONTACT: Mitch Cohen
704-890-8158
Mitch.Cohen@ice.com
chessmaster315
1 hour ago
Ok. Based on your post, an annual earning of $15 per share, with a 10 P/E, is $150 per share, tho I expect to achieve that level, that would assume no dilution. I think the shares have already been diluted..there used to be 1.1 billion shares, and you are talking 1.8 billion shares. Remember, the SEC allowed "naked shorting" on FNMA and worse, many investors simply did not cover those naked shorts ever, allegedly creating "zombie shares" which don't exist. The SEC is gonna have to cover that up, and that's probably why they are now saying 1.8 billion shares...a 63% dilution. If you bought FNMA at a dollar, and sell it for $31, it may not matter too much to you that there was a 63% dilution, because our inept and corrupt SEC permitted naked shorting and never covering FNMA and FMCC. I think this was Obama's "wind down" plan..to dilute them to nothing, pretty much allowing some people to make millions by naked shorting without risk, they simply don't ever cover, which creates zombie shares. This should never happen, but neither should have the NWS happened.
navycmdr
1 hour ago
"Freedom" in sight, "two houses" rise! Freddie Mac surged 29%
during trading, marking the largest increase since 2008
https://longportapp.com/en/news/224943233
Wallstreetcn - 2025.01.14 10:30
I'm PortAI, I can summarize articles.
On Tuesday, during intraday trading, Freddie Mac rose more than 30%, while Fannie Mae increased over 60% and 50% in the last five trading days, respectively. This surge for the two companies began after the U.S. government announced a new framework for an "orderly" exit from conservatorship, giving both companies hope to end the government conservatorship era that has persisted since the 2008 financial crisis
This Tuesday, the U.S. stock market saw a reduction in gains during intraday trading, with the S&P 500 index, which opened higher, turning negative in the morning. However, real estate stocks performed well, led by the government-supported mortgage agencies known as the "two GSEs"—Freddie Mac and Fannie Mae.
On January 14th, Tuesday, during the early trading session of the U.S. stock market, the Federal Home Loan Mortgage Corp., commonly known as Freddie Mac, saw its trading price in the pink sheet market reach a daily high, rising 29% intraday, marking the largest intraday gain since August 5, 2008, with a cumulative increase of over 50% in the last five trading days.
detearing
1 hour ago
Warren Buffett’s Consideration of Fannie Mae (FNMA)
Warren Buffett has indeed considered investing in Fannie Mae (Federal National Mortgage Association), particularly during the late 1980s. In his 1991 letter to shareholders of Berkshire Hathaway, Buffett recounted a significant opportunity he had to acquire a large stake in FNMA. He initially purchased about 7 million shares but stopped buying as the price began to rise, which he later regretted. His decision to halt further purchases was based on frustration with the stock’s increasing price and a personal aversion to holding small positions, leading him to sell the shares he already owned.
Buffett estimated that these mistakes cost Berkshire Hathaway approximately $1.4 billion by 1991 due to the missed opportunity for substantial gains from FNMA’s growth. This experience highlighted his tendency to reflect on investment decisions critically, especially when they result in significant financial losses.
Regret Over Investment Decisions
Buffett has expressed regret over his actions regarding FNMA, particularly for not fully capitalizing on the opportunity when it was available. He acknowledged that his decisions were driven by emotional responses rather than sound investment logic. This incident serves as a cautionary tale about the importance of maintaining discipline in investment strategies and not allowing personal biases to interfere with potential gains.
In contrast, Bill Ackman, a prominent hedge fund manager, has shown interest in Fannie Mae as part of his broader investment strategy. Ackman’s approach differs from Buffett’s historical perspective; he has actively advocated for reforms within FNMA and sees potential value in its recovery and future performance.
In summary, while Buffett did consider investing in FNMA and ultimately regretted not pursuing it more aggressively, his experience serves as an important lesson in investment discipline and decision-making.
LuLeVan
2 hours ago
How realistic is it that Fannie commons will rise to the $31 or $34 that Ackman suggested for the IPO date?
IMHO, the odds are very low. Ackman uses linguistic tricks in his article in Business Insider:
https://markets.businessinsider.com/news/stocks/ackman-says-fannie-mae-freddie-mac-particularly-interesting-today-1034181028
“We estimate the value of each company at the time of their IPOs in 2026 at ~$34 per share. We assume their IPOs are priced at $31 per share reflecting a ~10% discount to their intrinsic values.”
This means that Ackman assumes that the Newco shares will be offered to subscribers at the IPO price of $31. After the IPO, the new shares will rise to $34.
However, Ackman does not say on what terms the legacy commons will receive the new shares issued in the capital raise.
The warrants must necessarily be exercised before the capital raise (and also before the cancellation of the SPS, which Ackman implicitly expects), otherwise no one would participate in the capital raise.
Even if Fannie commons would go up to $10 now, the warrant exercise would bring them back down to $2 in an instant. This is because the warrant exercise gives the government 80% of the pie, leaving just 20% for existing shareholders.
An IPO price of $2 would be unusually low. Therefore, a reverse split of 15.5 to 1 would be applied, which would raise the price of the legacy commons to the IPO price of $31. However, this would reduce the number of shares held by existing shareholders by a factor of 15.5.
From 15,500 shares at $10 (current value: $155,000), only 1000 shares at $31 (Ackman's IPO price) would remain after warrant exercise and reverse split - for a total value of just $31,000. This is exactly the 80% loss that would result from exercising the warrants.
Ackman hid this warrant dilution problem in his quote above. Holders of legacy commons would get only 20% of Ackman's $31 IPO price in real terms. That's $6.20.
By comparison, at yesterday's closing price of $7.04, Fannie commons are already 84 cents more expensive than they would be worth at the time of the IPO (according to Ackman's expectations).
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