FNMA Company info 08/22/2014 11:29:51 $FNMA What
Post# of 64200
Posted On: 08/22/2014 12:29:57 PM
FNMA Company info 08/22/2014 11:29:51 $FNMA
What We’re Hearing: Banks to FDIC: Drop Dead / FHA and Ginnie Get a Chunk of the Massive BofA Settlement / Should DOJ Sue a Dead Subprime Executive ?
In the mortgage industry, the mud rolls downhill. That’s obvious. Fannie Mae and Freddie Mac were taken over by the government almost six years ago.
Did any mortgage professional in their right mind think the Treasury Department and Federal Housing Finance Agency wouldn’t sue the pants off of any mortgage company (or executive) that could be connected to a loss at the GSEs?
In the wake of the savings and loan crisis, the Federal Deposit Insurance Corp. and Resolution Trust Corp. (remember them?) sued the executives and boards of almost every failed thrift. The agencies went after the “directors and officers” insurance policies in the hopes of recouping some of their losses.
In the wake of the mortgage crisis and collapse of the GSEs, FHFA sued MBS underwriters and forced billions of dollars in loan buybacks from primary market originators. This government “policy” was precedented. Anyone who had been around in the 1980s saw what happened with the thrifts.
And now we have the Department of Justice suing (on a civil basis) issuers of subprime MBS. Where are we going with this? It boils down to the future: Uncle Sam has bled billions of dollars from Bank of America, JPMorgan Chase and others – but not necessarily for what they did, but for the sins of companies they bought.
In other words, BofA has ponied up almost $26 billion to FHFA and DOJ over the past six months for the activities of companies that it didn’t even own at the time of their alleged crimes: Countrywide and Merrill Lynch. In the eyes of some, BofA did a huge favor for the government by taking over these too-big-to-fail institutions. And what did BofA get in return? Sued.
The next time there’s a banking crisis, will any executive of a bank help out Uncle Sam?...
On the topic of suing the rescuers of failing lenders, one mortgage veteran offered up this observation: “Our Attorney General is going to hunt down all the ‘banksters’ with every weapon they have and make them pay and pay.
Can you imagine any bank such as JPM and Bank of America ever agreeing to help out the government over a weekend to bail another bank out, even at a huge discount?”…
Lost in all the news this week about BofA paying $16.65 billion to Uncle Sam to settle allegations over faulty MBS was this little detail: $800 million is going to FHA and another $200 million to Ginnie Mae. FHA, of course, could use the cash. Ginnie Mae has been earning nice profits the past few years. A Ginnie spokeswoman promised to give IMFnews more details on its share of the settlement next week…
Countrywide founder (and former chairman and CEO) Angelo Mozilo was in the news again this week. Press reports indicate that prosecutors in Los Angeles are preparing a civil case against Mozilo even though he settled with the SEC a few years ago, agreeing to pay almost $68 million to cover Countrywide-related mortgage misdeeds.
We will point out that from 2004 to 2007 Countrywide Securities Corp. was the fourth largest underwriter of subprime MBS. Lehman Brothers – which went bust in 2008 – was number one with $282 billion.
A close second to Lehman was Greenwich Capital, the underwriter for former subprime giant Ameriquest and its wholesale affiliate Argent.
A fair question to ask is this: If DOJ goes after Mozilo, why not go after the owners of Ameriquest/Argent which created so much of the faulty subprime product that Greenwich securitized?
Ameriquest was chiefly owned by businessman Roland Arnall, who died back in 2008. In theory, they could sue his estate. (In 2006 Ameriquest coughed up $325 million to settle predatory lending charges with states.) Greenwich, which is owned by the Royal Bank of Scotland, is being sued by the FHFA for all the MBS garbage it sold to Fannie and Freddie. Note:
The U.K. government became the majority shareholder of RBS in November 2008 and now owns 64 percent of its shares. That settlement, when it comes, could be a doozy…
Mortgage advisor Rick Roque tells us that the loan officer sector is beginning to bifurcate. Roque says high performance LOs are still in demand and are fetching nice salaries and offers to jump ship. “But lower performing LOs are leaving companies or being forced out.” The advisor said LOs who are closing $500,000 a month in loans are in a bind. “It’s getting harder and harder for them”…
Roque, by the way, was one of the advisors who told IMFnews this week that mortgage companies with less than $8 million in net worth may want to consider selling. For more on the story, see the new edition of Inside Mortgage Trends…
One investment manager told us this week that he owns some shares in Ocwen, but is still somewhat bullish on the company. But he noted that he has talked to other funds that early in the year had 15 percent of their money tied up in Ocwen stock. In January, Ocwen’s shares were trading for $55. Today, the price is $27. “You can hear the pain,” he said…
Actually I'm gonna be brave and add more. So if it drops, it's because I clicked "Buy"......LOL.....
FNMA Stock Message Board http://investorshangout.com/Fannie-Mae-FNMA-61730/
JMO highlander,but i think all are silent because they are waiting on Sweeney. The latest 2 suits filed are more of a timing event, than to make a public splash as news. I agree to some extent with this posters view on the time line and strength of Sweeney's court and her rulings.
How Important is the Sweeney verdict? By Woodenthall;
As I understand it, very. On a judicial level I believe she is the highest court for Federal level Litigation. If there are other cases in Federal Courts they are either below her court or at the same level but in either instance they all seem to be waiting on her decision to set precedent for their Courts to rule on.
Why wait for one Court? It would be awkward to have Federal Courts rule contradictory to her or each other. In instances where her Court supersedes other Courts it would assure a flood of appeals that can be avoided by waiting on her ruling. There is only one Court above Sweeneys and that is the Supreme Court and I believe they would not hear this as long as Sweeneys verdict is correct.
Her decision also effects Legislation. You will notice that newer legislation includes profits for stock holders. This is because if Sweeney removes the sweep it means that the FHFA has to advocate for share holder rights, and profits. Legislation to the contrary could be challenged in Court based on the precedent she will set.
Her decision could even kill the “wind down” and make it an actual merger. If the FHFA is forced, by Sweeneys ruling, to actually advocate for FNMA and FMCC any “wind down” legislation would have to be opposed by the FHFA if it did not benefit both FNMA and FMCC.
Preferably a non federal entity would be appointed to replace the FHFA. This would avoid future lawsuits as it is likely that the FHFA would fail in the future as they have failed now. Appointing a new, non federal, Conservator could avoid future lawsuits based on legislation that the FHFA itself as Conservator would be required to challenge in Court that violates the rights of the stock holders.
The timing of the “Ackman” suits are not a coincidence. It shows that his legal advisors believe that by starting the process now, a Sweeney ruling will be announced before they are ready for a ruling and they believe it will be a positive one. They are counting on the Sweeney ruling to set precedent their Courts will defer to. Sweeneys ruling is monumental concerning everything concerning FNMA and FMCC.
I hope this helps folks to understand why some courts are waiting. A Sweeney verdict is a verdict in all Courts and they will all be ready to rule on hers. Keep the faith.
$$ FNMA $$
I think Berkowitz/Ackman would put the gmnt in an awkward position. Where they offer 58 Million in value to Gmnt in their plan and a Crapo plan would cost the gmnt money in both cost and guarantee exposure.
Sell side volume MACD about to go positve anytime now. The recent s**t storm looks close to being over.
Big banks settling
8/22/2014
On Thursday, the U.S. Justice Department announced the largest-ever civil settlement with a single entity when Bank of America agreed to pay $16.65 billion.
The settlement was in response to multiple lawsuits filed in the wake of the country's mortgage crisis that led to the Great Recession. Bank of America, plus its subsidiaries Country Financial Corp. and Merrill Lynch, are paying the price for their roles in selling risky and mostly worthless mortgage-backed securities, and for their loan practices.
"Bank of America profited by misleading investors about the risky nature of the mortgage-backed securities it sold," California Attorney General Kamala Harris said in a statement.
U.S. Attorney General Eric Holder said "when confronted with concerns about their reckless practices -- bankers at these institutions continued to mislead investors" and approve "loans with fundamental credit, compliance and legal defects."
While the settlement is the largest, it isn't the only punishment being meted out to financial institutions that helped cause the nation's worst economic times since the Great Depression of the 1930s.
BoA already had been fined $1.3 billion because of Countrywide's fraudulent mortgage program internally known as "the hustle." Bank of America also has agreed to pay $5.8 billion for the toxic mortgage securities it, Countrywide and Merrill Lynch sold to the government-sponsored Fannie Mae and Freddie Mac programs.
Last month, Citigroup settled for $7 billion because its agents sold defective mortgage investments during the subprime housing boom as well. Last year, JPMorgan Chase & Co. agreed to a $13 billion settlement to resolve a similar dispute.
On its face, all of the settlements sound great. There has been a diligent effort made by state and federal officials to hold accountable all the companies whose lustful pursuit of profits and bonuses resulted in severe damage to not only the U.S. economy but most global markets as well. Household wealth in this country alone fell by approximately $16.4 trillion when the artificially inflated housing market crashed and stock prices plummeted.
That number bears repeating. Americans lost $16.4 trillion in net worth between the spring of 2007 and early 2009. The less than $50 billion in settlements does not even pretend to make up for the losses incurred by ordinary citizens who fell victim to somebody else's greed. Not even close. The settlements don't even address the number of home foreclosures, bankruptcies, devastated retirement plans and lost jobs as the national economy ground to a halt.
Economists and financial planners will tell you net worth has been regained -- and then some. The Wall Street Journal reported earlier in March that by the end of 2013, that net worth was hitting record highs in excess of $80 trillion. Home values are rising modestly, but the primary driver has been record-high stock prices.
We must emphasize who owns stocks. No less than 80 percent of the entire market is claimed by the wealthiest 10 percent of Americans. Which implies the only people who have recovered from the recession are the rich. Your average U.S. citizen has recouped less than 50 percent of their losses from the recession. That, in turn, further increases the wealth disparity that already had been causing unrest in America.
So when state and federal governments continue to pander to the interests of "job-creators" and wealthy concerns, we hope regular people pay attention. Most of the policies and programs intended to improve the economy center on the class that already has recovered its money and more. The vast majority of us still struggle to regain our meager footholds, yet elect politicians resolved to further widen the wealth and income gaps.
Justice is not being served by the settlements agreed to by the offending financial institutions. Their collective behavior was criminal, yet nobody is going to jail. The corporate "persons" simultaneously are being given even more freedom to exploit the working class.
Unfortunately, we have nobody to blame but ourselves.
Editorial by Patrick Lowry
http://hdnews.net/opinion/editorial082214-edit
Lol! Tuck it away and don't even look at it...it works for me!
Uggg. I know. Sorry. Fannie has gone red every single time I've bought in, or added. It's driving me batty. But I think we are close to something good finally happening. Guess we'll see
Not really sure of their criteria but I think you're right.
Absotively, posilutely! Gov ALWAYS wants minimum dual sourcing. In B&P stage, they want minimum 3 or more, 5 preferably.
Quote:
@955- i cannot believe Blackstone was the only one to pitch. There must be more out there.
Blackstone are the smart guys in the room.
I still think there someone is working on a deal. I was disappointed with the latest Granny/Ackman suit thinking that the "deal" had broken down. But since he basically just filed and is not doing a lot of Campaigning I think the "deal" may still be in the works and the lawsuit is just part of the Chess moves.
I realize this is all in my head. But it is the scenario that fits into why Berkowitz others have been quiet. These guys are not wall flowers.
Of course I am always open to differing ideas. Not point in just preaching to the choir as they say.
It would be so cool if a deal was put together with one of the European Banks and our community banks. f- wall street,and BAC
No, where they payoff shareholders and then get rid of Fannie and Freddie similar to the crapp/johnson method.
And that probably would not happen until FNMA hit the big boards, correct? I was thinking the same thing
Same here. Can only do it so many times tho.
#completelytapped
Will the REAL riskychick Please standup? Lol!
This is nothing new, in 1982 a law prof. at a business school I attended stated that in a court case the side with the most liars wins! I'm not surprised things have only gotten worse. How many people thought the movie line, "greed is good" was..right on, man!!! Too many I'm afraid.
GO FnF
Agreed 100% I wish double my position in FnF!!!Double enjoy then!!! and $$$$$$$$$ of course!!!!GO FnF
Thanks. Yeah, I'm feeling better about holding again. I'm really liking the charts. The weekly bollies are very tight, and the Golden Cross isn't very far off, imo......
Me too! I'll just have to wait until the time when Ameritrade will let me margin what I already have.
Welcome back to the long side,LOL, Volume it's the key here, certainly have some similarity with the last September!!! Who Big Money are loading shares Now?? that it's the question!!!
What We’re Hearing: Banks to FDIC: Drop Dead / FHA and Ginnie Get a Chunk of the Massive BofA Settlement / Should DOJ Sue a Dead Subprime Executive ?
In the mortgage industry, the mud rolls downhill. That’s obvious. Fannie Mae and Freddie Mac were taken over by the government almost six years ago.
Did any mortgage professional in their right mind think the Treasury Department and Federal Housing Finance Agency wouldn’t sue the pants off of any mortgage company (or executive) that could be connected to a loss at the GSEs?
In the wake of the savings and loan crisis, the Federal Deposit Insurance Corp. and Resolution Trust Corp. (remember them?) sued the executives and boards of almost every failed thrift. The agencies went after the “directors and officers” insurance policies in the hopes of recouping some of their losses.
In the wake of the mortgage crisis and collapse of the GSEs, FHFA sued MBS underwriters and forced billions of dollars in loan buybacks from primary market originators. This government “policy” was precedented. Anyone who had been around in the 1980s saw what happened with the thrifts.
And now we have the Department of Justice suing (on a civil basis) issuers of subprime MBS. Where are we going with this? It boils down to the future: Uncle Sam has bled billions of dollars from Bank of America, JPMorgan Chase and others – but not necessarily for what they did, but for the sins of companies they bought.
In other words, BofA has ponied up almost $26 billion to FHFA and DOJ over the past six months for the activities of companies that it didn’t even own at the time of their alleged crimes: Countrywide and Merrill Lynch. In the eyes of some, BofA did a huge favor for the government by taking over these too-big-to-fail institutions. And what did BofA get in return? Sued.
The next time there’s a banking crisis, will any executive of a bank help out Uncle Sam?...
On the topic of suing the rescuers of failing lenders, one mortgage veteran offered up this observation: “Our Attorney General is going to hunt down all the ‘banksters’ with every weapon they have and make them pay and pay.
Can you imagine any bank such as JPM and Bank of America ever agreeing to help out the government over a weekend to bail another bank out, even at a huge discount?”…
Lost in all the news this week about BofA paying $16.65 billion to Uncle Sam to settle allegations over faulty MBS was this little detail: $800 million is going to FHA and another $200 million to Ginnie Mae. FHA, of course, could use the cash. Ginnie Mae has been earning nice profits the past few years. A Ginnie spokeswoman promised to give IMFnews more details on its share of the settlement next week…
Countrywide founder (and former chairman and CEO) Angelo Mozilo was in the news again this week. Press reports indicate that prosecutors in Los Angeles are preparing a civil case against Mozilo even though he settled with the SEC a few years ago, agreeing to pay almost $68 million to cover Countrywide-related mortgage misdeeds.
We will point out that from 2004 to 2007 Countrywide Securities Corp. was the fourth largest underwriter of subprime MBS. Lehman Brothers – which went bust in 2008 – was number one with $282 billion.
A close second to Lehman was Greenwich Capital, the underwriter for former subprime giant Ameriquest and its wholesale affiliate Argent.
A fair question to ask is this: If DOJ goes after Mozilo, why not go after the owners of Ameriquest/Argent which created so much of the faulty subprime product that Greenwich securitized?
Ameriquest was chiefly owned by businessman Roland Arnall, who died back in 2008. In theory, they could sue his estate. (In 2006 Ameriquest coughed up $325 million to settle predatory lending charges with states.) Greenwich, which is owned by the Royal Bank of Scotland, is being sued by the FHFA for all the MBS garbage it sold to Fannie and Freddie. Note:
The U.K. government became the majority shareholder of RBS in November 2008 and now owns 64 percent of its shares. That settlement, when it comes, could be a doozy…
Mortgage advisor Rick Roque tells us that the loan officer sector is beginning to bifurcate. Roque says high performance LOs are still in demand and are fetching nice salaries and offers to jump ship. “But lower performing LOs are leaving companies or being forced out.” The advisor said LOs who are closing $500,000 a month in loans are in a bind. “It’s getting harder and harder for them”…
Roque, by the way, was one of the advisors who told IMFnews this week that mortgage companies with less than $8 million in net worth may want to consider selling. For more on the story, see the new edition of Inside Mortgage Trends…
One investment manager told us this week that he owns some shares in Ocwen, but is still somewhat bullish on the company. But he noted that he has talked to other funds that early in the year had 15 percent of their money tied up in Ocwen stock. In January, Ocwen’s shares were trading for $55. Today, the price is $27. “You can hear the pain,” he said…
Actually I'm gonna be brave and add more. So if it drops, it's because I clicked "Buy"......LOL.....
FNMA Stock Message Board http://investorshangout.com/Fannie-Mae-FNMA-61730/
JMO highlander,but i think all are silent because they are waiting on Sweeney. The latest 2 suits filed are more of a timing event, than to make a public splash as news. I agree to some extent with this posters view on the time line and strength of Sweeney's court and her rulings.
How Important is the Sweeney verdict? By Woodenthall;
As I understand it, very. On a judicial level I believe she is the highest court for Federal level Litigation. If there are other cases in Federal Courts they are either below her court or at the same level but in either instance they all seem to be waiting on her decision to set precedent for their Courts to rule on.
Why wait for one Court? It would be awkward to have Federal Courts rule contradictory to her or each other. In instances where her Court supersedes other Courts it would assure a flood of appeals that can be avoided by waiting on her ruling. There is only one Court above Sweeneys and that is the Supreme Court and I believe they would not hear this as long as Sweeneys verdict is correct.
Her decision also effects Legislation. You will notice that newer legislation includes profits for stock holders. This is because if Sweeney removes the sweep it means that the FHFA has to advocate for share holder rights, and profits. Legislation to the contrary could be challenged in Court based on the precedent she will set.
Her decision could even kill the “wind down” and make it an actual merger. If the FHFA is forced, by Sweeneys ruling, to actually advocate for FNMA and FMCC any “wind down” legislation would have to be opposed by the FHFA if it did not benefit both FNMA and FMCC.
Preferably a non federal entity would be appointed to replace the FHFA. This would avoid future lawsuits as it is likely that the FHFA would fail in the future as they have failed now. Appointing a new, non federal, Conservator could avoid future lawsuits based on legislation that the FHFA itself as Conservator would be required to challenge in Court that violates the rights of the stock holders.
The timing of the “Ackman” suits are not a coincidence. It shows that his legal advisors believe that by starting the process now, a Sweeney ruling will be announced before they are ready for a ruling and they believe it will be a positive one. They are counting on the Sweeney ruling to set precedent their Courts will defer to. Sweeneys ruling is monumental concerning everything concerning FNMA and FMCC.
I hope this helps folks to understand why some courts are waiting. A Sweeney verdict is a verdict in all Courts and they will all be ready to rule on hers. Keep the faith.
$$ FNMA $$
I think Berkowitz/Ackman would put the gmnt in an awkward position. Where they offer 58 Million in value to Gmnt in their plan and a Crapo plan would cost the gmnt money in both cost and guarantee exposure.
Sell side volume MACD about to go positve anytime now. The recent s**t storm looks close to being over.
Big banks settling
8/22/2014
On Thursday, the U.S. Justice Department announced the largest-ever civil settlement with a single entity when Bank of America agreed to pay $16.65 billion.
The settlement was in response to multiple lawsuits filed in the wake of the country's mortgage crisis that led to the Great Recession. Bank of America, plus its subsidiaries Country Financial Corp. and Merrill Lynch, are paying the price for their roles in selling risky and mostly worthless mortgage-backed securities, and for their loan practices.
"Bank of America profited by misleading investors about the risky nature of the mortgage-backed securities it sold," California Attorney General Kamala Harris said in a statement.
U.S. Attorney General Eric Holder said "when confronted with concerns about their reckless practices -- bankers at these institutions continued to mislead investors" and approve "loans with fundamental credit, compliance and legal defects."
While the settlement is the largest, it isn't the only punishment being meted out to financial institutions that helped cause the nation's worst economic times since the Great Depression of the 1930s.
BoA already had been fined $1.3 billion because of Countrywide's fraudulent mortgage program internally known as "the hustle." Bank of America also has agreed to pay $5.8 billion for the toxic mortgage securities it, Countrywide and Merrill Lynch sold to the government-sponsored Fannie Mae and Freddie Mac programs.
Last month, Citigroup settled for $7 billion because its agents sold defective mortgage investments during the subprime housing boom as well. Last year, JPMorgan Chase & Co. agreed to a $13 billion settlement to resolve a similar dispute.
On its face, all of the settlements sound great. There has been a diligent effort made by state and federal officials to hold accountable all the companies whose lustful pursuit of profits and bonuses resulted in severe damage to not only the U.S. economy but most global markets as well. Household wealth in this country alone fell by approximately $16.4 trillion when the artificially inflated housing market crashed and stock prices plummeted.
That number bears repeating. Americans lost $16.4 trillion in net worth between the spring of 2007 and early 2009. The less than $50 billion in settlements does not even pretend to make up for the losses incurred by ordinary citizens who fell victim to somebody else's greed. Not even close. The settlements don't even address the number of home foreclosures, bankruptcies, devastated retirement plans and lost jobs as the national economy ground to a halt.
Economists and financial planners will tell you net worth has been regained -- and then some. The Wall Street Journal reported earlier in March that by the end of 2013, that net worth was hitting record highs in excess of $80 trillion. Home values are rising modestly, but the primary driver has been record-high stock prices.
We must emphasize who owns stocks. No less than 80 percent of the entire market is claimed by the wealthiest 10 percent of Americans. Which implies the only people who have recovered from the recession are the rich. Your average U.S. citizen has recouped less than 50 percent of their losses from the recession. That, in turn, further increases the wealth disparity that already had been causing unrest in America.
So when state and federal governments continue to pander to the interests of "job-creators" and wealthy concerns, we hope regular people pay attention. Most of the policies and programs intended to improve the economy center on the class that already has recovered its money and more. The vast majority of us still struggle to regain our meager footholds, yet elect politicians resolved to further widen the wealth and income gaps.
Justice is not being served by the settlements agreed to by the offending financial institutions. Their collective behavior was criminal, yet nobody is going to jail. The corporate "persons" simultaneously are being given even more freedom to exploit the working class.
Unfortunately, we have nobody to blame but ourselves.
Editorial by Patrick Lowry
http://hdnews.net/opinion/editorial082214-edit
Lol! Tuck it away and don't even look at it...it works for me!
Uggg. I know. Sorry. Fannie has gone red every single time I've bought in, or added. It's driving me batty. But I think we are close to something good finally happening. Guess we'll see
Not really sure of their criteria but I think you're right.
Absotively, posilutely! Gov ALWAYS wants minimum dual sourcing. In B&P stage, they want minimum 3 or more, 5 preferably.
Quote:
@955- i cannot believe Blackstone was the only one to pitch. There must be more out there.
Blackstone are the smart guys in the room.
I still think there someone is working on a deal. I was disappointed with the latest Granny/Ackman suit thinking that the "deal" had broken down. But since he basically just filed and is not doing a lot of Campaigning I think the "deal" may still be in the works and the lawsuit is just part of the Chess moves.
I realize this is all in my head. But it is the scenario that fits into why Berkowitz others have been quiet. These guys are not wall flowers.
Of course I am always open to differing ideas. Not point in just preaching to the choir as they say.
It would be so cool if a deal was put together with one of the European Banks and our community banks. f- wall street,and BAC
No, where they payoff shareholders and then get rid of Fannie and Freddie similar to the crapp/johnson method.
And that probably would not happen until FNMA hit the big boards, correct? I was thinking the same thing
Same here. Can only do it so many times tho.
#completelytapped
Will the REAL riskychick Please standup? Lol!
This is nothing new, in 1982 a law prof. at a business school I attended stated that in a court case the side with the most liars wins! I'm not surprised things have only gotten worse. How many people thought the movie line, "greed is good" was..right on, man!!! Too many I'm afraid.
GO FnF
Agreed 100% I wish double my position in FnF!!!Double enjoy then!!! and $$$$$$$$$ of course!!!!GO FnF
Thanks. Yeah, I'm feeling better about holding again. I'm really liking the charts. The weekly bollies are very tight, and the Golden Cross isn't very far off, imo......
Me too! I'll just have to wait until the time when Ameritrade will let me margin what I already have.
Welcome back to the long side,LOL, Volume it's the key here, certainly have some similarity with the last September!!! Who Big Money are loading shares Now?? that it's the question!!!
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