Fannie Mae (FNMA)

Fannie Mae And Freddie Mac Are Undercapitalized May. 18, 2014 10:06 AM ET    |    29 comments  |    About:   FNMA ,  FMCC Disclosure:  I am long FNMA, FMCC.  (More...) Summary The Third Amendment Net Worth Sweep is illegal. Fannie Mae and Freddie Mac have paid back more than they borrowed. The largest investor in Fannie Mae and Freddie Mac is the American taxpayer. The largest beneficiary of Fannie Mae and Freddie Mac is the American taxpayer. Fannie Mae and Freddie Mac saved America during the crisis and are the best solution going forward. Fannie Mae ( OTCQB:FNMA ) and Freddie Mac ( OTCQB:FMCC ) were two of the most profitable companies  of 2013. The Third Amendment Net Worth Sweep is Illegal I recommend listening to Charles J. Cooper's  interview  with The Federalist Society to better understand the illegal nature of the Third Amendment Net Worth Sweep. The law was broken. Discovery is happening. This will be retroactively fixed. Until i

The US housing finance system works just fine From Mr Chris Lafakis. Sir, Edward Luce (“ Hedge funds are testing the quality of US democracy ” (Comment, May 12) paints the investors’ lawsuit against the US government on Fannie Mae and Freddie Mac as a righteous struggle between noble American democracy and the evil lords of Wall Street.  Should we not question the authority of the US government to confiscate the profits of any company, including one that it bailed out, by fiat decree? The GSEs have repaid every penny they borrowed. In the teeth of the crisis, no one thought this possible. The system worked.  It does not need to be “reformed”. Mr Luce and virtually every commentator or politician who opines on this issue, including President Barack Obama, wants the US to unilaterally disarm one of its greatest sources of comparative advantage: cheap, 30-year mortgages predicated on the full faith and credit of the US government and the dollar’s role as global reserve currency.

WASHINGTON (Reuters) - The regulator of government-controlled mortgage finance firms Fannie Mae ( FNMA ) and Freddie Mac ( FMCC ) said on Sunday he would not oppose them having a smaller presence in the market but private capital had to be ready to take over first. Watt said last week, in his first public speech since taking office, that he did not want to shrink Fannie and Freddie's footprint, marking a sharp departure from his predecessor.Federal Housing Finance Agency Director Mel Watt said the two companies, which own or guarantee about 60 percent of all U.S. home loans, needed to remain in the housing finance market to make sure it was liquid and resilient. "It's not that I'm opposed to it and we will certainly allow it to happen," he told C-SPAN's "Newsmakers" program, when asked about the prospect of shrinking the lenders' activities. "But if the private sector is not ready to step into the space, and you shrink what Fannie and

Why I Bought Shares of Fannie Mae and Freddie Mac By  Alexander MacLennan  |  More Articles   May 20, 2014  |  Comments (3) This article is part of a series of articles that looks at  Fannie Mae    ( NASDAQOTCBB:  FNMA     )  and  Freddie Mac    ( NASDAQOTCBB:  FMCC     )  from an investment perspective. To  read the full analysis,  click here . Until solid profits started to show at Fannie and Freddie, the common stock was priced for liquidation trading at around $0.30. But even as the profits started to appear, big investors like Fairholme Funds and Perry Capital purchased the preferred stock. It was only late last year that the common stock received major interest from a major investor when Bill Ackman bought nearly 10% of the outstanding shares of each GSE. The potential Trading in the $4 range, shares of Fannie and Freddie have a lot of potential upside if the net worth sweep of the GSEs was removed. In a recent presentation, Ackman gives long-term values of

These 2 Companies Made a $10.2 Billion Profit, But Investors Won’t See a Dime By  Matthew Frankel  |  More Articles   |  Save For Later   May 25, 2014  |  Comments (5) Fannie Mae  ( NASDAQOTCBB:  FNMA     ) and  Freddie Mac  ( NASDAQOTCBB:  FMCC     ) earned a very impressive profit of about $10.2 billion in the first quarter of 2014. Thanks to their bailout arrangement, 100% of this amount goes straight into the pockets of the U.S. Treasury. While the Treasury deserves to be compensated for its bailout of both companies during the financial crisis, don't the shareholders deserve some of the profits as well? After all, these are people who put their faith in businesses that were left for dead and have now returned to profitability, so it makes sense they want a cut. However, it's looking pretty unlikely they'll see anything and may even get wiped out altogether. Congress is actively trying to wind down both agencies, and unless the shareholders are successful in

Fannie Mae, Freddie Mac attract investor groups By  Dina ElBoghdady  and  Danielle Douglas ,  E-mail the writers Investor groups are scooping up shares of Fannie Mae and Freddie Mac and even offering to buy core pieces of their businesses, complicating legislative efforts to shut down the two mortgage giants. Some Capitol Hill lawmakers have been clamoring to shutter the companies ever since the government seized them at the height of the 2008 housing crisis. President Obama also has publicly  called for an end  to the two institutions. But investor groups are presenting a political wrinkle. The housing market is on the mend, and investors are betting that Fannie and Freddie are poised for a comeback. They have bought massive numbers of shares in each company on the cheap, and they are making it known that they see value in their investment. Last week, Fairholme Capital Management offered to take over key portions of Fannie and Freddie, infuse them with $52

At Fannie Mae and Freddie Mac, Investors Get the Cold Shoulder By  Amanda Alix  |  More Articles   |  Save For Later   May 25, 2014  |  Comments (0) Source: Flickr / rottnapples. If you thought that mortgage giants  Fannie Mae  ( NASDAQOTCBB:  FNMA     ) and  Freddie Mac  ( NASDAQOTCBB:  FMCC     ) were on their way to oblivion, think again. The new head of the Federal Housing Finance Agency, Mel Watt, has decided that expanding mortgage credit and repaying taxpayers are a priority for the two agencies – and he can't say enough about it. As for Fannie and Freddie shareholders, Watt recently told an interviewer: " I don't lay awake at night worrying about what's fair to the shareholders ." A step backward for the GSEs? With Watts at the helm, the two government-sponsored enterprises appear to be experiencing a renaissance of sorts . In recent speeches and interviews, the new FHFA chief been upfront about his new vision for the two GSEs – a view that v

sueojlee   •   May 24, 2014 4:01 PM   Flag 9 users liked this posts users disliked this posts 1 Reply (FHFA) Announces Reversal of Plans to Wind Down Fannie Mae and Freddie Mac article By: Robert M. Siegel Jeremy C. Sahn Bilzin Sumberg Baena Price & Axelrod LLP posted on: Monday, May 19, 2014 Early last week, recently-appointed director of the Federal Housing Finance Agency (FHFA) Melvin L. Watt, announced plans to keep GSEs Fannie Mae and Freddie Mac going strong. This new strategy is in stark contrast to the express goals of his predecessor Edward J. DeMarco, White House officials and other proposed legislation, such as the Housing Opportunities Move the Economy (HOME) Forward Act of 2014, that was aimed at dismantling the GSEs and shifting mortgage-lending risks back to the private sector. In his first speech as leader of the FHFA, Watt presented FHFA’s Strategic Plan for 2014, in which he stressed the Agency’s plan “to manage the present status of Fannie Mae

if  fanny is reformed as per government wishes he stand to gain by his wells fargo -so he goes.....Hew had the first call on many such crisis like Goldmans  preferred etc  he is not only connected via his moodys he get first all opportunity unlike us  1 Billionaire Weighs in Again on Fannie Mae and Freddie Mac By  Patrick Morris  |  More Articles   May 23, 2014  |  Comments (6) Warren Buffett at  Berkshire Hathaway   has once again provided a  unique and critical  insight into what he believes is best for government-sponsored mortgage enterprises  Fannie Mae   ( NASDAQOTCBB:  FNMA     )  and  Freddie Mac    ( NASDAQOTCBB:  FMCC     ) .  At the latest Berkshire Hathaway annual meeting, Buffett and longtime business partner Charlie Munger continued their tradition of conducting a question and answer session lasting more than six hours. While the two weighed in on countless issues, one of the most fascinating (and longest) discussions resulted from this question: D