|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||10.70 - 11.13|
|52 Week Range||5.20 - 13.30|
|Beta (3Y Monthly)||0.47|
|PE Ratio (TTM)||983.64|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
There are over 10,000 securities traded on the OTC Markets, 1,430 of which trade on the market’s top two tiers, OTCQX and OTCQB. But when it comes to the most actively traded of those securities, there ...
NEW YORK/WASHINGTON, July 17 (Reuters) - The Trump administration's hotly anticipated blueprint for overhauling mortgage guarantors Fannie Mae and Freddie Mac may not be published until September as the U.S. Treasury juggles several other pressing issues, the housing regulator told Reuters. Mark Calabria, director of the Federal Housing Finance Agency (FHFA), which oversees the government-sponsored enterprises, said in an interview it was his "hope" that they would have exited or be ready to exit conservatorship before his term ends in 2024. Calabria's comments will temper market expectations for a speedy overhaul of Fannie and Freddie before the 2020 presidential election.
Fannie Mae and Freddie Mac will eventually halt purchases of U.S. home loans linked to the London interbank offered rate (LIBOR) as that index is set to be phased out after 2021, Mark Calabria, the head of the Federal Housing Finance Agency, told Reuters on Wednesday. LIBOR is referenced against $200 trillion worth of U.S. financial products, primarily in interest rate derivatives. There are roughly $1 trillion in adjustable-rate mortgages (ARMs), or about 6.5% of all U.S. home loans outstanding, which are reset against it.
Fannie Mae and Freddie Mac will eventually halt purchases of U.S. home loans linked to the London interbank offered rate (LIBOR) as that index is set to be phased out after 2021, Mark Calabria, the head of the Federal Housing Finance Agency, told Reuters on Wednesday. LIBOR is referenced against $200 trillion worth of U.S. financial products, primarily in interest rate derivatives. "We have not yet told Fannie and Freddie to stop buying LIBOR ARMs, but that is a day that will come," FHFA director Mark Calabria told Reuters.
(Bloomberg) -- The Trump administration is growing wary of taking bold steps toward freeing Fannie Mae and Freddie Mac from federal control before the 2020 election, said people familiar with the matter, in part because of the political risk of potentially upending the U.S. mortgage market.While White House and Treasury Department officials are eager to end the companies’ decade-long conservatorships, they see the task as arduous, slow-moving and extremely complicated, said the people who asked not to be named in discussing internal deliberations.Adding to the challenge is that Treasury Secretary Steven Mnuchin is spending much of his time on more pressing priorities, including the trade war with China, debt ceiling negotiations with Congress and imposing sanctions on Iran and other nations. Still, Mnuchin, who has experience in the mortgage banking industry, works on housing finance weekly, according to one of the people.“The president earlier this year instructed the Department of Treasury to develop a comprehensive plan for bold reform,” White House spokesman Judd Deere said in an email statement. The National Economic Council, Treasury, Federal Housing Finance Agency and others “continue to work together on this presidential priority and anything to suggest otherwise is false,” Deere said.Fannie slid as much as 11% before rebounding to $2.70, a 4.2% decline, at 1:38 p.m. in New York. Freddie fell as much as 10% and stood at $2.61, down 3.3%. The declines were the biggest since Mnuchin told Bloomberg in June that he didn’t want to release the companies from government control without reform.Releasing Fannie and Freddie is no easy lift. It could require raising more than $200 billion -- likely through the biggest share offerings in history -- to ensure the companies have enough capital to survive a meltdown. And the Treasury’s point-person on the companies, counselor Craig Phillips, left last month. His departure raises questions about who might drive work on the issue with other agencies, and potentially on Capitol Hill.One concern among administration officials is that freeing Fannie and Freddie could impact the housing market, possibly making it harder for borrowers to get loans just as President Donald Trump is seeking another term, two of the people said. Housing is a key factor in the health of the U.S. economy, which is seen as crucial to Trump’s re-election prospects.As wards of the state, Fannie and Freddie benefit from pristine credit ratings and a government line of credit, which keeps financing flowing for mortgage lending and borrowing rates low for buyers. It’s not clear how investors in mortgage bonds and lenders might react if the companies were no longer assumed to have the full backing of the U.S. government.There’s still plenty of action the White House, Treasury and Fannie and Freddie’s regulator, the Federal Housing Finance Agency, can take in the next 18 months.For instance, they can curtail Fannie and Freddie’s footprints in the mortgage market, which would reduce risks to the companies. FHFA Director Mark Calabria could also impose a formal rule that dictates how much capital Fannie and Freddie must hold.Perhaps most significantly, Treasury and FHFA could halt a policy that requires the companies to send nearly all their earnings to the Treasury. Though one person familiar with the matter cautioned that ending the so-called profit sweep is unlikely to happen this year.Signs that the administration is moving more slowly than anticipated are evident. Treasury has yet to issue a long-awaited report on its plan for getting Fannie and Freddie out of the government’s grip, despite Calabria saying he hoped it would be released by the end of June. Now, agencies are aiming to get the document out within the next couple of months, according to people familiar with the matter.The stakes are significant. Fannie and Freddie fuel the housing market by buying mortgages from lenders and packaging them into bonds that are sold to investors with guarantees of interest and principal. The process provides financing that makes homes more affordable, and keeps the mortgage market liquid. In total, Fannie and Freddie stand behind about $5 trillion of home loans.Figuring out a fix for the companies, by far the biggest unresolved issue from the 2008 financial crisis, has long confounded policy makers and lawmakers. The companies were taken over by regulators and bailed out by taxpayers during the collapse of the housing market, ultimately getting $191 billion in aid. They have since become profitable again, and paid more in dividends to Treasury than they received in rescue funds.This year, there’s been optimism that Washington was finally making progress, particularly following the April appointment of Calabria.A former economic adviser to Vice President Mike Pence, Calabria made a series of speeches and media appearances in the weeks after joining the FHFA in which he signaled fresh action. He said his agency and the Trump administration might bypass Congress to end the conservatorships, and that he wanted Fannie and Freddie ready to start raising capital by Jan. 1 of next year.Trump himself even joined in, telling Realtors at a May conference in Washington that dealing with Fannie and Freddie was a “pretty urgent problem.”For some on Wall Street -- hedge funds and other investors that own Fannie and Freddie shares -- the remarks have spurred excitement that they were poised to make a windfall, and possibly soon. The stocks have more than doubled this year.Mnuchin has already signaled that he’s not looking for a quick fix for Fannie and Freddie. In a June 8 Bloomberg interview, he said the administration wouldn’t just let the companies build up capital and then release them without making major changes to housing finance policy.Mnuchin hasn’t ruled out bypassing Congress to free Fannie and Freddie. Though Phillips’ June exit from Treasury might make doing so harder. The former BlackRock Inc. and Morgan Stanley executive has mortgage-finance expertise and deep connections on Wall Street, which probably would have proved helpful for possible stock sales. Phillips also had a strong interest in the issue, and it’s not clear who might fill that void at Treasury now that he’s gone.(Updates with White House spokesman’s comment in the fourth paragraph.)To contact the reporters on this story: Saleha Mohsin in Washington at firstname.lastname@example.org;Jennifer Jacobs in Washington at email@example.com;Austin Weinstein in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jesse Westbrook at email@example.com, ;Alex Wayne at firstname.lastname@example.org, Gregory MottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Each day, Benzinga takes a look back at a notable market-related moment that happened on this date. What Happened On July 11, 1986 , the Federal National Mortgage Association (OTC: FNMA ) issued the first ...
(Bloomberg) -- A surge in government-guaranteed mortgage refinancings is underway, bucking the decline in the broader market since early June.While a Mortgage Bankers Association refinancing index has dropped 8% since the week ending June 7, the government refinance sub-index is up 25%. Over the same period the conventional refinance sub-index has dropped 32%, according to data compiled by Bloomberg.In the most recent prepayment report conventional Fannie Mae 30-year mortgages saw aggregate speeds drop about 3% to 12.8 CPR. In contrast, mortgages issued by Ginnie Mae, most notably Federal Housing Administration and Veteran Affairs loans, rose about 2% to 17 CPR.Speeds are measured by so-called conditional prepayment rates (CPR), a number that gives the annualized percentage of the existing mortgage pool expected to prepayThe FHA and VA have streamlined programs that allow for easier and relatively lower-cost refinancings compared with Fannie Mae and Freddie Mac conventional loans. These government mortgages tend to exhibit larger loan sizes then conventional mortgages, as the latter often see a downpayment of about 20%. In contrast, VA mortgages require 0% and FHA requires only about 3.5% from borrowers.The speed difference between aggregate Fannie Mae 30-year mortgages and their Ginnie Mae II counterparts has increased this year, with the latter paying 5.2 CPR faster in June from 2.1 faster in January, according to Wells Fargo data. This may be one factor behind the recent cheapening of Fannie Mae compared with government MBS.With two additional business days available in July versus June for borrowers and brokers to work on refinancings, along with the traditional boost provided by summer seasonals, the recent drop in the overall refinancing index may be at an end. JPMorgan MBS strategists expect speeds to see a 30% cumulative increase over the next two months.Christopher Maloney is a market strategist and former portfolio manager who writes for Bloomberg. The observations he makes are his own and are not intended as investment adviceTo contact the reporter on this story: Christopher Maloney in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Adam Cataldo, Rick GreenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? The Dow closed at 96.94. Today, the Dow is trading at 26,536 and the S&P 500 is trading at 2,913. What Else Was Going On In The World?
(Bloomberg Opinion) -- Any Democrat elected president next year will have to deal with Mitch McConnell. Odds are he will remain Senate majority leader in 2021, and even if he doesn’t, McConnell has proved that he is willing and able to use parliamentary procedure to thwart the will of a Democratic president and Congress.The only Democrat with a plan for dealing with McConnell is Joe Biden. The question is not so much whether the former vice president’s plan will work — he has already shown he can work with Republicans in general and McConnell in particular — but whether bipartisanship is what the Democratic Party really needs. For Democrats now, as it was for Republicans a decade ago, the need is for someone to contain and channel the energetic fringe of the party.To be clear: Democrats have justifiable reasons for their antipathy toward McConnell and their skepticism of Biden. In 2008, Democrats had a new and popular president, control of the House and what would become a filibuster-proof majority in the Senate. They were ready to use that power to pass sweeping legislation on health care, climate and immigration. They also, wisely, wanted that legislation to be bipartisan. Without Republican support, they knew that the changes would become the source of bitter partisan fighting.Enter Mitch McConnell. He refused to offer that cover, among other things ensuring that Obamacare passed on a party-line vote. In doing so, Democrats argue, he revealed how little he valued bipartisanship. Biden’s inability to see this, they say, is willfully naïve.This assessment fails to account for circumstances, both then and now. In 2008, even McConnell’s fiercest critics acknowledge, the survival of the Republican establishment was very much in jeopardy. The loss to Democrats that year was devastating, but the real threat to Republican leadership was from the right.In his 2008 manifesto “The Revolution,” Representative Ron Paul, then a candidate for president, argued that conservatism had been betrayed. In his view, the Federal Reserve, out-of-control spending, government regulation and war were on the verge of destroying America. In the months after the book’s release, Fannie Mae and Freddie Mac were taken over by the federal government, AIG was rescued by the Federal Reserve, Congress approved the $700 billion TARP bailout and the newly formed Iraqi government nearly collapsed. It seemed as if all of Rand’s predictions were being proved correct.When in early 2009 the Obama administration proposed additional help for beleaguered homeowners, what had been a fringe movement exploded into the mainstream. In its early days, the nascent Tea Party movement seemed on the verge of taking over the Republican Party. If McConnell had simply accepted the bipartisan overtures of the White House, it would have resulted in a complete collapse of the Republican center and pushed the party even further to toward the right.Over the next six years, in fact, McConnell repeatedly allowed extreme members of the Republican caucus to test their thesis that big government could be defeated and Obamacare rolled back — if only they stuck to their guns and refused to pass a budget, raise the debt limit or otherwise allowed the government to function. Each time, with Biden as a partner, McConnell would swoop in at the last moment to close a deal that moved forward conservative priorities while averting a government shutdown or default on the debt. These deals made McConnell even more unpopular with Republican primary voters, but they brought his fellow Republican senators around to his way of thinking.The partnership with Biden was key to McConnell’s success and survival. McConnell knows that, and his gratitude showed in his 2016 tribute to the former vice president. Biden also knows this, and that’s the source of his otherwise inexplicable confidence in his ability to cut deals with McConnell.That said, any future partnership between the two men would be sustained by pragmatism more than sentimentality. The pair will likely turn to their shared interests in entitlement reform, perhaps combined with gradual action on climate. That’s the kind of long-term deal-making that older centrists of both parties favor.But it comes with a risk. By joining with Republicans to pass a centrist agenda, Biden would risk alienating the progressive wing of the Democratic Party — which in 2021 would take up the role played by the Tea Party in the GOP in 2009. The left would sponsor candidates to run against centrist incumbents in Democratic primaries. (In fact, this may be happening already.)As long as nothing goes horribly wrong, Biden might be able to ride out the storm. For a time, centrism might hold sway in Washington. Eventually, however, something always goes wrong: another recession, a climate-related natural disaster, a crisis in the Middle East or Asia. Then the Biden style of governing would be called into question.At that point, centrist Democrats would be forced to deal with the uprising within their party, just as Republicans have been doing for the past decade. The best way to avoid this scenario is for the party to embrace the rising energy on the left now and integrate it into a presidential agenda. That’s the path Bernie Sanders and Elizabeth Warren have chosen.That implies a much more hostile relationship with Republicans than Biden envisions — but also much less of chance of an intraparty revolt. The reason to oppose Biden’s Nixon-goes-to-China plan for bipartisanship is not that it’s naïve. It’s that, in the long run, it will make the party weaker.The U.S. is going through a period of rising partisanship, and it will need strong political parties to ride it out. It’s a counterintuitive point that McConnell seems to understand well: The revival of the two parties in U.S. politics is more important right now than the revival of bipartisanship in Washington.To contact the author of this story: Karl W. Smith at email@example.comTo contact the editor responsible for this story: Michael Newman at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Karl W. Smith is a former assistant professor of economics at the University of North Carolina's school of government and founder of the blog Modeled Behavior.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
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.
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.
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.
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.