Federal National Mortgage Association (QB) (FNMFO)

Any peeps from Burry though he said this week and it's only Tuesday.

Pershing Square has been quiet

The investor calling for it is Bradford ....full article below


GSE capital rule revamp plan coming soon, investor predicts
The Trump administration's interest in regulatory capital reform could extend to the government-sponsored enterprises in ways that could build value for a new offering of shares, one investor says.

President Trump's executive order on mortgage credit and the Basel III re-proposal point to interest in rewriting the enterprises' regulatory capital framework, wrote Glen Bradford, who has been a Seeking Alpha analyst since 2008 and invests in the GSEs' junior preferred shares.

"The regulatory capital framework that the ERCF was aligned with is already on its way to being reduced. If these requirements are being reduced, it doesn't make sense to leave the ERCF," Bradford wrote in a recent report.

His report predicts a quicker revival of moves toward the first post-conservatorship offering of Fannie Mae and Freddie Mac's stock than some others, which foresee the Federal Housing Finance Agency as likely to keep plans for one on hold until after the midterm elections.

"The administration can deliver a significant housing policy win before the midterms of increasing the affordability of mortgage credit by having FHFA propose an update to its ERCF," Bradford wrote.

The FHFA, which serves as Fannie and Freddie's oversight agency, had not immediately responded to a question about whether it might revamp the enterprises' regulatory capital framework at the time of this writing.

Where capital stands and may be headed
Although Fannie and Freddie were forced into government conservatorship in 2008 by the Great Financial Crisis' housing crash, more recently they've had a long run of consistent profitability and gain in net worth.

"Since January 2020, we have increased our net worth by $99 billion, including $52 billion since we began reporting our capital position under the enterprise regulatory capital framework for the fourth quarter of 2022," Fannie Mae CFO Chryssa Halley said in a recent earnings call.

However, the enterprises are still running a capital deficit under the current framework, largely because the government's senior preferred shares aren't counted toward regulatory capital. The ERCF also makes other adjustments.

Fannie's net worth was $113 billion in the first quarter, but its regulatory capital excludes $121 billion in senior preferred shares. Its adjusted total available capital was -$18 billion in the first quarter. Freddie's net worth is $70 billion but its regulatory capital excludes $73 billion in senior preferred shares. Its adjusted total regulatory capital was -$18 billion in the first quarter.

Analysts, investors and other pundits have varying views on how long it will take to rebuild capital, with many suggesting it could take several years.

However, a recent proposal by former Freddie Mac CEO Donald Layton suggests the time needed for a ECRF rewrite could be much shorter if FHFA returns to a previous 2018 version as the starting point for a new potential framework.

Also Rep. Scott Fitzgerald, R. Wisconsin, has introduced a long anticipated bill in the House which would end the conservatorships in late June.

Bradford notes that this bill, which also calls for "a determination with respect to necessary capital standards for each enterprise to exit conservatorship" within 90 days of enactments suggests policymakers "can move fast."

All this could mean what some refer to as "initial public offering" for a portion of the GSEs' shares, which currently trade in the pink sheets, could occur a lot faster than other analysts have estimated, according to Bradford.

"It looks like it may take anywhere from a few months to 2.5 years to IPO, where junior preferreds get made whole in that transaction. With warrant expiration a few months before the end of the Trump administration and the companies hitting pro forma statutory 2.5% capital requirements by then, they'll at least have a consent decree," he said.

nmn_author_Bonnie_Sinnock.jpg
Capital Markets Editor

Bonnie Sinnock is National Mortgage News' Capital Markets Editor at Arizent and has worked for NMN and affiliated publications since 1995. Her... Read full bio

You're a fool.

Oh My! Did Ert teller you that?

https://finance.yahoo.com/quote/FNMA/history/

Says here volume today was < 1M shares.]

ETRADE says 2.65M and FMCC about 1M

In any case, super, super light.

Calm before a storm.... maybe....

Heavy, Dude, Heavy

Future bailout may be needed. Taking them out of conservatorship and letting them run amok like they did when (FNMA) they caused the mortgage meltdown is a risky proposition lawmakers are reluctant to take .You can take the crooks out of running the mortgage business but you can’t take running the mortgage business out of the crooks .

That IRAN First msg. still is open... that is for sure.

Calm before the storm?

Care to wager?  I am ready to bet we hear nothing on 7/11 or in July 

I hear you, not sure what is the hold up at this point! Thr only thing I can think off is they want to keep a large chunk of fnf however, their attorneys don't know how to legally make it happen??? At the end I think they have to concede and let them free, with no warrant execution and SPS rendered paid.  
My thoughts!

Bro they have ample time and have worked on sorting this out and we are about to see the new capital rule

Hanging on edge of PPS cliff by fingernails . No news no plans only rumors from highly respected source. Looks like might of worn out welcome (FNMA) on Pink Sheet and could be headed not to Texas but highly restricted Grey Sheets .

oooh - too cool

And if in doubt - Make It Important

When something is important to those making decisions - it happens. F&F are not important to Pulte nor Trump - or the release would have happened last year. I believe it is now a tug of war with the warrants and using us shareholders - for a further steal. That is why they filed an appeal on a unanimous verdict. I truly don't understand - to me this is black and white and the shareholders need to be made whole. Way too long.

why do you think they would not list off otc cesspool? any reason to not stop manipulation, naked shorting ? there are so many things that can be done right away.

Unchanged, with the backdrop of all the major indexes down is actually good. Oil and the 10 year treasury climbing again - we just need a break. I will take the Appeals court ruling in our favor and Pulte releasing the 11k unredacted docs for starters! :)

You fear ???  Long back when he said no rush, you shd have known that

Anybody notice that Maria B seemed to have all of our heroes on: Lutnick, Bessent and Pulte - many times.

Not recently?!

6.17 SOFT LANDING - man, they are good - no change

Trump is back on Greenland, whining about NATO, can't defeat Iran as they've attacked 3 more ships in the Strait today. We're not low on the list, I fear we've fallen OFF the list.

My real time quotes still showing: 6.17 0.0 0.00% 2,656,071

Close $6.25
And she pulled off her low
like a shock wave - good sign for manana

BOOM! 6.18 + 0.01 🤣

https://www.yahoo.com/finance/markets/stocks/articles/trump-fans-confused-by-how-their-investments-in-his-crypto-and-stock-are-now-worth-a-tiny-fraction-while-hes-getting-richer-195545795.html

Potus needs to make the move, enough delays 

Somebody liking FNMAS today.

It's moving, but it's moving DOWN.

nothing to discuss with volumes like this.
RED OR GREEN? TRULY DOES NOT STINKIN MATTER
kegstackz the sage is wholly uninterested in along4ccp nonsensical posts, or empty pablum TOMORROW WE BOOM.

no real rumors = no real volume = no real rumors

THE CIRCLE OF LIFE

Top of the mark here folks . Out of steam . Spit the (FNMA) bit . Will you be fast enough to hit sell before being trampled by others heading towards exit .

She's startin' to move - WooEeee Baby, GO

Seems it's running late. I'll go to lunch then come back for my "Learning."

A Strong Cup is forming that will take us
to $7.20 very soon

How right you are! Everyone needs to Sell
as fast as possible - Bail
Except me, i'm waiting for the
Big Guns to take over...BAIL FORKS, BAIL

d
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In 8 Minutes - Watch & Learn

When does it start?

Sen. Elizabeth Warren, D-MA, called on Bill Pulte to resign as acting director of national intelligence and as director of the Federal Housing Finance Agency. She pointed to a report released Monday by minority staff of the Senate Committee on Banking, Housing and Urban Affairs. The report catalogued previously-reported actions taken by Pulte as FHFA director.

Agree with your assessment.
GLTU

Not what I expect at all.
90% from 15.99 to say 1.59?

Not with them being thisclose.

Not unless Pulte says something like, "Well, yeah, we own them... like 99%... when we convert the SPS at $2" or "the cap stack is overloaded with that SPS and liquidation preference". If they state something about the Mnuchin-Dilution-Solution route, then maybe.

Otherwise, we will continue to see (hopeful) folks picking up shares and the longer the wait, GreenShoots & Debeav may get a 4.87 print... that would be the low.

Ain't saying that will happen. I am more in the imminent camp / "soonish" for whatever the plan sitting on the table gets the green light.

well there is no marginal buyer here; there are enough people who have believed in this trade for long enough that now that they haven't seen the immediacy of announcements that we were led to expect are giving up; i've seen people predict price decreases of like 90%+ if trump doesn't act; i mean --- that's fair i guess, but it is kind of a failure to acknowledge that fnma is already at statutory capital requirements post balance sheet restructuring and that the trump admin is nearly done if not entirely done with staging all the leg work for this deal to be announced; i'm curious to see if the report from the eo due this saturday comes with any fhfa news release; it may.. that would be cool

My Man! WARRIOR! We're here for you! Physically, mentally, emotionally, just not financially

Where IS Everyone? I thought we had
real players here - oh well, better for most
of you to just stay quiet - but we are ready for the Mooon

National Mortgage News
GSE capital rule revamp plan coming soon, investor predicts
19 hours ago
By Bonnie Sinnock

What Say - WE FLY?

A Spark of Hope

illegal naked short selling must be stopped and held accountable. give me one reason why 8 trillion companies gse stock has to be on over the counter (otc) and we continue to enable such fraud and manipulation?
https://www.sec.gov/comments/s7-07-23/s70723-20162302-331156.pdf

“Initially attacks were done in the fringe markets, i.e. over the counter or companies that appeared to be easy victims”

“the examples cited are limited to listed companies, but much of the abuse occurs in the
over the counter market, ---------.”