|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||22.00 - 22.25|
|52 Week Range||8.51 - 23.75|
|Beta (3Y Monthly)||1.78|
|PE Ratio (TTM)||2,022.73|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Concern that the administration might try to release the companies with no federal backstop has largely been triggered by their regulator, Federal Housing Finance Agency Director Mark Calabria. An appointee of President Donald Trump, he suggested in media interviews last month that he thought Fannie and Freddie could survive without one by building up capital buffers and reducing market risk. Treasury Secretary Steven Mnuchin, who Calabria will collaborate with on many reforms, has said that he would prefer there be an explicit backstop, though he hasn’t ruled out bypassing Congress to free Fannie and Freddie.
The head of the U.S. Federal Housing Finance Agency (FHFA) said on Thursday that Congress should create a "limited" explicit guarantee for government-sponsored enterprises Fannie Mae and Freddie Mac. "The explicit guarantee should be limited, clearly defined, and paid for," Mark Calabria told an audience in Washington. Fannie and Freddie have operated under government conservatorship since they were bailed out during the 2008 subprime mortgage crisis.
Lawmakers should pursue measures that reduce taxpayer risk, promote competition and support sustainable home-ownership, Federal Housing Finance Agency Director Mark Calabria wrote in a letter accompanying his first annual report to Congress. “Reform remains overdue, despite prior efforts, and we should view this task with some urgency,” Calabria wrote in the letter dated June 11. Congress has failed in repeated efforts to deal with Fannie and Freddie, which have been under U.S. conservatorship since they were seized by regulators as the mortgage market collapsed in 2008.
U.S. mortgage lenders turned optimistic about profits in the second quarter for the first time in nearly three years as tumbling interest rates led to a jump in demand for home loans, a survey from Fannie Mae showed on Wednesday. The latest figure was a switch from the first quarter when the share of lenders who were pessimistic about future profits exceeded the share of those who were optimistic by 8 percentage point. "This quarter, 'consumer demand' jumped significantly and is now the top reason cited by lenders who reported an increased profit margin outlook, reaching the highest reading since Q2 2016," the mortgage finance agency said in a statement.
In a June 8 interview, Mnuchin was adamant that the Trump administration won’t just let Fannie and Freddie build up their capital buffers and then release the companies. Fannie and Freddie shares fell on his comments. “What we’re not going to do is business as usual with no changes, just re-capitalize them and float them,” said Mnuchin, referring to a possible public offering of Fannie and Freddie shares.
The revamp, the most significant overhaul of the market in a generation, will virtually eliminate the distinction between bonds issued by Fannie Mae and Freddie Mac, which guarantee nearly half of U.S. residential mortgages. The hope is that blending the two will improve market liquidity and, as a result, mitigate investor risk while helping keep a lid on mortgage costs. It’s the final step in a more than five-year process to unify a roughly $4.4 trillion pile of agency MBS currently split between the two government-sponsored enterprises.
Mortgage giants Fannie Mae and Freddie Mac could be returned to the private market at different times, especially if the government moves to float them on the public markets, the head of the U.S. housing finance regulator told Reuters in an interview. It may be preferable to stagger that process due to the complexities involved in getting the government-backed firms, which have different business models, ready for private ownership, said Mark Calabria, director of the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac and the U.S. housing finance system.
Freddie’s outgoing chief executive officer says that’s easier said than done. Don Layton, who plans to step down July 1, said Tuesday that a capital plan issued a year ago by the companies’ regulator would require the mortgage giants to raise a combined $125 billion, in part by selling shares. To underscore how big a figure that is, Layton noted that the biggest initial public offering ever was Alibaba Group Holding Ltd.’s, in which the online retailer raised $25 billion.
On March 27th, President Trump issued a memorandum to the Secretary of the Treasury and the Secretary of Housing and Urban Development directing them to craft housing finance reform plans. The directive to Treasury listed "ending the conservatorships of the GSEs" as its first goal and instructed Treasury to specify for each reform included in the plan "whether the proposed reform is a 'legislative' reform that would require congressional action or an 'administrative' reform that could be implemented without congressional action. For each 'administrative' reform, the Treasury Housing Reform Plan shall include a timeline for implementation." A response from Treasury is expected in the next two to three months.
Pershing Square Holdings generated strong performance during the first quarter of 2019 and year-to -date. NAV per share increased 36.9% during the first quarter and by 38.4%1 year-to-date, compared with the S&P 500's year-to-date total return of 13.9%. Warning! GuruFocus has detected 5 Warning Signs with FNMA.
U.S. President Donald Trump said on Friday his administration was looking at alternatives to the conservatorship of mortgage giants Fannie Mae and Freddie Mac. "Fannie and Freddie can do a lot better ...
On Thursday, the Wall Street Journal reported that Craig Phillips, a top deputy to Treasury Secretary Steven Mnuchin, is leaving the federal agency. Phillips was formerly a top executive at BlackRock, Inc. (NYSE: BLK), and was known within the Trump administration as being a liaison between the Treasury and Wall Street.
(Bloomberg Opinion) -- Trump administration officials announced last week that if Congress doesn’t come up with a plan to overhaul Fannie Mae and Freddie Mac in the next couple years, they will. Their plan is to simply privatize the two giant mortgage banks. A better one would be to liquidate them.
The travails of Fannie and Freddie illustrate eloquently how a public-private partnership can go wrong. For decades, the two operated as privately owned companies, but with a congressional charter to guarantee payments of interest and principal on mortgage loans — guarantees that underpin the traditional 30-year fixed-rate loan, support a global market for U.S. mortgage-backed securities, and make homeownership accessible to millions of Americans. The crucial role that Fannie and Freddie play in housing finance led investors to think the government would always rescue them in an emergency.
Even in what has been a notoriously high-volume sector, March was a particularly strong month for cannabis securities that trade on OTC Markets. Six of the top 10 most active securities in March on the ...
Berkshire Hathaway Chairman and CEO Warren Buffett speaks at the 2019 Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska. Buffett said it would be “very good for America” if Fannie Mae and Freddie Mac did more to help finance manufactured homes, such as those made by Berkshire-owned Clayton Homes.
Fannie Mae and Freddie Mac back about half of new mortgages in the U.S. Now, talks are heating up about reshaping or shrinking the two companies, a move that could impact millions of Americans. Photo: Heather Seidel/The Wall Street Journal
Spring housing market is in full swing and both buyers and sellers are feeling a bit more optimistic compared with past months. A new survey from Fannie Mae shows consumer home sentiment is ticking. The primary reason for the positive outlook falling mortgage rates leading to more affordability for buyers. Doug Duncan, Fannie Mae chief economist talks with Yahoo Finance's Julie Hyman and Adam Shapiro.