FNMA ~expected STRONG PROFIT New DD with Links~
The Federal National Mortgage Association, commonly known as Fannie Mae(FNMA), is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers. Web Site: http://www.fanniemae.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1) FNMA posted $17.2 billion record net profit in 2012, the largest annual and quarterly net income in the company’s history. Fannie Mae was the third-most profitable financial firm in 2012, after JP Morgan Chase and Wells Fargo. ~JP Morgan Chase: $21.2 billion net profit in 2102. Total outstanding shares 3.8 billion. Share price 49 dollars. ~ Well Fargo: $18.8 billion net profit in 2012. Total outstanding shares 5.2 billion. Share price 37 dollars. ~ FNMA: $17.2 billion net profit in 2012. Total Outstanding shares 1.1 billion. Share price UNDER 1 DOLLAR. http://www.fanniemae.com/resources/file/ir/pd...elease.pdf ------------------------------------------------------------------ FNMA made 17.2 billion dollars net profit last year. Paid 11.6 billion dollars dividend. NOT ALL profit went to dividend. 5.6 billion dollars left for the company ------------------------------------------------------------------ 2) Net Income Per Share 14.85 dollars Mar 31, 2012 Net Income 2,718,000,000 dollars Jun 30, 2012 Net Income 5,119,000,000 dollars Sep 30, 2012 Net Income 1,813,000,000 dollars Dec 30, 2102 Net Income 7,570,000,000 dollars ---------------------------------------------- Total Net income 17.2 billion dollars in 2102 The company has total 1,158,080,000 outstanding shares NET INCOME PER SHARE 17,200,000,000 / 1,158,080,000 = 14.85 dollars. http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9200264 3) Fannie Mae expects to remain profitable for the foreseeable future. http://www.fanniemae.com/resources/file/ir/pd...elease.pdf ------------------------------------------------------------------ 3) FNMA common shares Top Institutional Holders Top Institutional Holders Holder Shares % Out Value* Reported Steward Capital Management, Inc. 121,110 0.01 83,565 Mar 31, 2013 Heritage Investors Management Corporation 100,600 0.01 69,414 Mar 31, 2013 CapWealth Advisors, LLC 71,070 0.01 49,038 Mar 31, 2013 Rhumbline Advisors 63,500 0.01 16,510 Dec 31, 2012 Marco Investment Management LLC 10,571 0.00 2,748 Dec 31, 2012 Bath Savings Trust Co 11,000 0.00 7,590 Mar 31, 2013 Sarofim, Fayez 11,200 0.00 2,912 Dec 31, 2012 Cambridge Investment Research Advisors Inc. 16,049 0.00 11,073 Mar 31, 2013 Ray (Gerald L) & Associates 17,700 0.00 4,602 Dec 31, 2012 Tradition Capital Management LLC 10,000 0.00 2,600 Dec 31, 2012 Top Mutual Fund Holders Holder Shares % Out Value* Reported Capital Income Builder, Inc. 12,458,206 1.08 8,596,162 Mar 31, 2013 Lord Abbett Bond-Debenture Fund 818,000 0.07 212,680 Dec 31, 2012 MET Investors Ser Tr-Lord Abbett Bond Debenture Portfolio 227,275 0.02 59,091 Dec 31, 2012 Vantagepoint Mid/Small Company Index Fund 66,437 0.01 17,273 Dec 31, 2012 Principled Equity Market Fund 5,500 0.00 3,795 Mar 31, 2013 Security Equity Fund-Alpha Opportunities Series 14,313 0.00 4,007 Jan 31, 2013 John Hancock Var Ins Tr-Total Stock Market Index Tr 30,524 0.00 7,936 Dec 31, 2012 Lord Abbett Series Fund-Bond Debenture Portfolio 36,000 0.00 9,360 Dec 31, 2012 Vantagepoint Funds-Broad Market Index Fund 37,770 0.00 9,820 Dec 31, 2012 Fidelity Stock Selector All Cap Fund 28 0.00 7 Feb 28, 2013 http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders ------------------------------------------------------------------ 4) Fannie Mae and Bank of America resolution $11.6 billion on January 07, 2013. Fannie Mae announced a comprehensive resolution with Bank of America, including a $10.3 billion agreement on existing and prospective repurchase requests on a specified population of loans and an additional payment of $1.3 billion to address servicing issues. "A favorable resolution of this long-standing dispute between Fannie Mae and Bank of America is in the best interest of taxpayers," said Bradley Lerman, Executive Vice President and General Counsel of Fannie Mae. Under the agreement, Bank of America remains liable for repurchase obligations arising out of specified excluded defects (for example, Fannie Mae Charter Act violations) and certain unresolved servicing and indemnification obligations. Bank of America also will be responsible for certain payment and other obligations related to mortgage insurance. http://www.fanniemae.com/portal/about-us/medi.../5910.html http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d ------------------------------------------------------------------ 5) The next payment to FNMA from Swiss Bank, UBS ??? WSJ: Court Says Swiss Bank UBS Must Face Mortgage Lawsuit: $6.4 billion By CHAD BRAY UBS AG UBSN.VX -1.11% must defend a lawsuit brought by the federal regulator for Fannie Mae FNMA +2.11% and Freddie Mac FMCC +4.57% over the sale of $6.4 billion in securities backed by residential mortgages, including subprime home loans, a federal appeals court has ruled. The ruling, by the U.S. Second Circuit Court of Appeals, is the latest setback for the Swiss bank and other large banks defending a series of lawsuits by the Federal Housing Finance Agency. The regulator claims the banks misled Fannie Mae and Freddie Mac about the quality of the underlying mortgages related to nearly $200 billion in mortgage investments. UBSAG must defend a lawsuit brought by the federal regulator for Fannie Mae and Freddie Mac over the sale of $6.4 billion in securities backed by residential mortgages. In its ruling Friday, the appeals court rejected arguments by UBS that the claims were barred because they were filed too late and the agency lacked standing to pursue the case because its acting directors weren't properly appointed. The UBS lawsuit relates to about $6.4 billion in residential mortgage-backed securities sold to the mortgage companies between September 2005 and August 2007. The decision comes as the banks, including UBS, are separately seeking to reverse a series of rulings by U.S. District Judge Denise Cote, who is presiding over the cases, that have limited their ability to collect additional evidence to bolster their defense in the lawsuits. The banks have separately asked the appeals court to reverse the judge's prior decisions. http://online.wsj.com/article/SB1000142412788...10300.html http://finance.yahoo.com/news/appeals-court-s...33605.html ------------------------------------------------------------------ 6) There are 20 Banks have to get agreement with FNMA to get back bad loans that they sold FNMA. TOTAL AMOUNT of bad loans 200 BILLION DOLLARS!!! http://beta.fool.com/kcolona/2013/04/03/more-...lnk0000001 ------------------------------------------------------------------ 7) FNMA's source of profit: Serious Delinquencies Fell in February Fannie Mae said serious delinquencies on single-family mortgages in its portfolio fell during February, as the U.S. housing market continues to show signs of a recovery. Fannie said the percentage of loans at least 90 days delinquent declined to 3.13% during the month from 3.18% during January. The prior-year rate was 3.82%. http://www.4-traders.com/FEDERAL-NATIONAL-MOR...-16604274/ ------------------------------------------------------------------ 9) According to News and 10k FNMA expected 59 billion dollars tax related gain ------------------------------------------------------------------ NEW YORK TIMES: $59 billion tax related gain will be posted at the first-quarter report Fannie Mae Reports Record $7.6 Billion Quarterly Earnings By REUTERS Published: April 2, 2013 WASHINGTON (Reuters) — Fannie Mae, the largest mortgage financier in the United States, said Tuesday that it earned $7.6 billion in the fourth quarter, a record amount. It also predicted that it would be profitable “for the foreseeable future,” the latest sign that it is benefiting from a housing market recovery. Last year “really marked a turning point for us,” Timothy Mayopoulos, Fannie Mae’s chief executive, said in a conference call with reporters on Tuesday. The company said in a regulatory filing on Tuesday that despite its higher profit, it was not taking a tax-related gain that could have added as much as $59 billion to its earnings. Fannie Mae said in the filing that it expected to start taking those tax-related gains as early as when it files its first-quarter report. The federal government took over Fannie Mae and Freddie Mac in 2008 as losses on souring loans mounted, and eased some terms of the bailout early this year. The government has said it hopes eventually to withdraw support from the two companies, which, with the Federal Housing Administration, provide financing for nine out of 10 new home loans. http://www.nytimes.com/2013/04/03/business/fa....html?_r=0 ================================================================= 9) Wall Street Journal article FNMA and taxpayers money. Link for Wall Street Journal Article http://online.wsj.com/article/SB1000142412788...21834.html ------------------------------------------------------------------ FNMA winding down theory collapsed because The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program by two years to Dec. 31, 2015. By Christina Mlynski • April 11, 2013 • 10:07am The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program by two years to Dec. 31, 2015. The program was set to expire at the end of this year. FHFA determined that extending the program will provide borrowers additional opportunities to refinance, give clear guidance to lenders and reduce losses for the government-sponsored enterprises and taxpayers. "More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk," said Ed DeMarco, acting director of the FHFA. He added, "We are extending the program so more underwater borrowers can benefit from the lower interest rates." Additionally, FHFA will soon launch a campaign to inform homeowners about HARP. The campaign will educate consumers about the program, its eligibility requirements and provide options on how to utilize the program before it ends. To be eligible for a HARP refinance, homeowners must meet various criteria including, the loan must be owned or guaranteed by one of the GSEs, the loan most have been sold to one of the enterprises on or before May 31, 2009 and the current loan-to-value ratio must be greater than 80%. As of January 2013, more than 2.2 million borrowers have refinanced through HARP since its inception in April 2009. http://www.housingwire.com/news/2013/04/11/fh...-harp-2015 Fannie and Freddie’s regulator recently announced a two-year extension for HARP. The program had had been slated to expire at the end of this year, and will now run through 2015. http://blogs.marketwatch.com/thetell/2013/04/...financing/ ------------------------------------------------------------------ 10) FNMA CEO is a well-known Lawyer and Former BAC Counsel http://www.nytimes.com/2012/06/06/business/fa....html?_r=0 ================================================================== 11) Fannie Mae CEO: We will have strong profits for the foreseeable future By: Bloomberg TV interview | Thu, Apr 11, 2013 In his first TV interview since the company reported record profits, Fannie Mae (FNMA) CEO Tim Mayopoulos told Bloomberg TV's Peter Cook today that U.S. taxpayers could see a net gain from their bailout as the housing market rebounds. Mayopoulos said, "I do think, given the strength of our future profitability, that it is possible that we will be able to pay dividends that would be equal to or greater than the amount of money that we've received from the Treasury Department." Mayopoulos also said, "There is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be." Mayopoulos on Fannie Mae's turnaround: "We are obviously pleased with the turnaround and from our perspective. This is not something that miraculously came upon us. This is the result of four plus years of work that we've been doing at Fannie Mae. We've really been very focused on building a new book of business that will be profitable. We've been managing the legacy book to minimize losses and we've been focused on pricing appropriately for the risk that we take. While it probably seems like a very sudden turnaround to those outside the company, for those inside the company we've been working on this for years to try to get to this place." On whether the profits are sustainable over the long-term: "We do think that we will have strong profits for the foreseeable future. The degree of confidence about that varies the farther out you go because we can't predict the future years out, but for the next few years we expect clearly to be profitable." On whether taxpayers could earn a profit on their investment in Fannie: "We are paying substantial dividends to taxpayers, so the company received payments from the Treasury of $116 billion. So far we have paid dividends in excess of $35 billion. I do think, given the strength of our future profitability, it is possible that we will pay dividends that will be equal to or greater than the amount of money that we have received from the Treasury department." On whether the debate for the government to replace Fannie Mae will happen sooner rather than later: "I'm not sure if it will happen sooner rather than later. I do think there is a risk that I think people should not accept, but there is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be. I think the sooner we get there, the sooner private capital is likely to come back to this market." On whether the reality is that the better Fannie Mae does, the sooner it goes away: "That's one possibility. I think what our return to profitability does is allow policymakers to think about a full range of potential outcomes. They don't have to start with the assumption that creating some successors to Fannie and Freddie necessarily means that we have to accept hundreds of billions of dollars of losses for taxpayers. I do think the taxpayers may well receive their money back. I think what this has done is freed policymakers to think about what the full range of possibilities should be. There is a lot of debate about that, but I think the key is getting to an answer in the foreseeable future because no matter what you think the future housing finance system should look like, everybody agrees that at the moment the taxpayer shouldn't be on the hook for 90% of the market. Between Fannie, Freddie and FHA, the taxpayers are guaranteeing 90% of all the mortgages that are being written across the country. That doesn't make sense no matter what you think the future of the housing finance system should look like." ------------------------------------------------------------- Catch the full interview this Sunday (April 14, 2013) on "Capitol Gains," airing at 11:30 am ET on WUSA9 in Washington and nationally on Bloomberg Television at 12 pm and 5 pm ET. LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html --------------------------------------------------------- 12) CNBC's comment about FHFA leading candidate MARK ZANDI http://video.cnbc.com/gallery/?video=3000159958&play=1 -------------------------------------------------------- According to the company 10k annual filing and news, FNMA's the first quarter 2013 (probably first week of May) expected STRONG PROFIT . It will make FNMA, THE MOST PROFITABLE financials firm in 2013, IMO. This is my dd. Read, check links and make your own dd. ~Blue~
