FNMA The Federal National Mortgage Association, c
Post# of 28526
Posted On: 05/05/2014 9:14:22 PM
FNMA
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
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7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
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10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
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15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
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17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
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19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
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hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
FNMA
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
==================================================================
7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
==================================================================
10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
==================================================================
15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
==================================================================
17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
==================================================================
19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
==================================================================
hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
FNMA
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
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7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
==================================================================
10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
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15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
==================================================================
17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
==================================================================
19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
==================================================================
hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
FNMA
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
==================================================================
7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
==================================================================
10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
==================================================================
15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
==================================================================
17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
==================================================================
19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
==================================================================
hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
==================================================================
7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
==================================================================
10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
==================================================================
15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
==================================================================
17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
==================================================================
19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
==================================================================
hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
FNMA
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
==================================================================
7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
==================================================================
10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
==================================================================
15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
==================================================================
17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
==================================================================
19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
==================================================================
hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
FNMA
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
==================================================================
7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
==================================================================
10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
==================================================================
15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
==================================================================
17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
==================================================================
19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
==================================================================
hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
FNMA
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 homebuyers.
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA Net income $68.8 billion in the first half of 2013
We recognized comprehensive income of $69.6 billion in the first half of 2013, consisting of net income of $68.8 billion and other comprehensive income of $820 million . In comparison, we recognized comprehensive income of $8.5 billion in the first half of 2012, consisting of net income of $7.8 billion and other comprehensive income of $690 million .
Q2 filing , page 3,
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
2) As of June 30, 2013 , there were 1,158,077,970 shares of common stock of the registrant outstanding.
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9442903
3) FNMA net profit per share: 59.4 dollars
NET PROFIT PER SHARE: TOTAL NET PROFIT (Q1+Q2)/ TOTAL OUTSTANDING SHARES
NET PROFIT PER SHARE: 68.8 BILLION DOLLARS/ 1,158,077,970 COMMON SHARES= 59.4 DOLLARS
So far FNMA/FMCC paid 146.6 billion dollars dividend to US government. The company received 187 billion dollars investment from The government.
4) FNMA~ 11.20% COMMON shares Held by Institutions, IT was 1.3% two months ago.
http://finance.yahoo.com/q/ks?s=FNMA+Key+Statistics
5) [ b]SEC filing: FAIRHOLME owned FNMA/FMCC common shares
FMCC - Federal Home Loan Mortgage Corp. - 7,218,200 Shares -$14,652,946
FNMA - Federal National Mortgage Association - 7,042,000 shares - $14,788,200
http://www.sec.gov/Archives/edgar/data/109634...dncsrs.htm PAGE 8
6) $78 billion Hedge Fund Capital Income Builder, Inc. owned 12,458,206 FNMA common shares as of Jun 30, 2013
Capital Income Builder, Inc. 5,300,000 FMCC common shares as of Jun 30, 2013
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
==================================================================
7) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
2. Bank of America Corporation ($6 billion)
3. Barclays Bank PLC ($4.9 billion)
4. Citigroup, Inc. ($3.5 billion)
5. Countrywide Financial Corporation ($26.6 billion)
6. Credit Suisse Holdings (USA), Inc.($14.1 billion)
7. Deutsche Bank AG ($14.2 billion)
8. First Horizon National Corporatio ($883 million)
9. General Electric Company ($549 million)
10. Goldman Sachs & Co.($11.1 billion)
11. HSBC North America Holdings, Inc. ($6.2 billion)
12. JPMorgan Chase & Co.($33 billion)
13. Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
14. Morgan Stanley ($10.6 billion )
15. Nomura Holding America Inc.($2 billion)
16. The Royal Bank of Scotland Group PLC($30.4 billion)
17. Société Général($1.3 billion)
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
coming!!! JP Morgan Faces $6 BILLION FHFA Fine to Settle Bad Loans
http://www.bloomberg.com/video/jpmorgan-faces...OXZyQ.html
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
BAC PAID $11.6 BILLION, CITIBANK PAID $968 MILLION
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.
http://www.fanniemae.com/portal/about-us/medi.../5910.html
http://phx.corporate-ir.net/phoenix.zhtml?c=1...aWQ9NTc%3d
9) Citigroup to Pay Fannie Mae $968 Million Over Mortgage Claims Citi said most of the settlement amount would be covered by the bank's existing mortgage repurchase reserves.
http://dealbook.nytimes.com/2013/07/01/citigr...e&_r=0
==================================================================
10) FNMA's source of profit: Fannie Mae's single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and Delinquency Rate fell to 2.83% in May compared with 5.47 percent as of March 31, 2010.
http://www.fanniemae.com/resources/file/ir/pd...053113.pdf,
11) 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.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
o April 11, 2013 o 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.
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/
12) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company's assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company's operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director's determination that the Conservator's plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
13) FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently, and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
14) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company(!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
==================================================================
15) FNMA/FMCC Shareholders Challenge U.S. Takeover in Suit
The shareholders' complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
==================================================================
17) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fa....html?_r=0
18) 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."
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxpayers-may-...FEq4Q.html
==================================================================
19) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
20) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
21) Fortune 500 list: FNMA #12, FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
==================================================================
hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.
By KIRSTEN GRIND
And NICK TIMIRAOS
Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors.
Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal.
Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said.
The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors.
Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie.
Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively.
Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department.
Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits.
The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19.
For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court.
Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook."
"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds."
Mr. Berkowitz said he doesn't take that view.
"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders."
Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said.
Mr. Berkowitz is no stranger to unpopular bets.
He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company.
"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors.
The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged.
By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500.
After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger.
Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts.
The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends.
Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate."
http://online.wsj.com/article/SB1000142412788...44954.html
FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION.
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