Fannie Mae (QB) (FNMAO) Share Price

"No, FNMA did not "lower underwriting standards to be competitive". Instead, TBTF banks lowered theirs, then sold these toxic loans to Fannie, lying about the quality of loans to get Fannie to buy them. Those of us who follow Fannie know that several of the banks admitted to lying about toxic loans sold to Fannie, but were penalized "pennies on the dollar" for the losses, so banks can go back and do the same thing again. Banks paid billions in fines, but it was peanuts to the losses to Fannie and Freddie's massive loan losses on these toxic loans. They called them "toxic" for a reason."

PRECISELY!!!!!!! Those lender bundles were like buying a car with 50,000 miles to later find out the odometer had been around three times; then the car dealer wanting to refund you for a car with 350,000 miles.

you can click the three dots next to post #...and hit ignore to ignore Donotunderstand. I had to do it because I was getting spammed with nonsense as well

For Fannie Mae (and the additional 4 billion + shares) that would be $31 billion versus $4 million.

I agree 100% on the mortgages that F and F bought for their MBS paper --- their core business - their standards and processes were good. (Even if they did get hit by outright lies by TBTF banks)

As I recall, F and F at the same time, held a bunch of their "reserves" in TBTF crap paper to gain the higher interest (and they were rated AAA)

So that reserve - paper from other sources not F and F -0 got hit bad because the TBTF paper was crap and thus indirectly - ON PAPER in their Balance Sheet - F and F took a hit

I suggest the hit was not large enough to GRAB us - and that the GOV like it did for FDIC and every MM out there - could have dealt with the fear by the Chinese and Russian owners of F and F MBS paper by saying - it is guaranteed - done - over in 12 months

fair enough

Maybe, though, you can try reading it as lyrics to a song? You pick the song

sorry

If they have shares and it goes to 30 cents then YES, they have 30 cent shares.

Boom Zoom to the Moon🚀🚀🚀🚀

The loss ratio on F and F MBS paper is low and lower and could not be such if they had low standards for black and brown and women

Just defies the huge profit they have made over and over

Re staffing - you could reduce staffing to zero and IMO it has no direct impact on PPS as the PPS is 99% burdened by 200B of Obligation per Treasury. Again - I think Treasury can - on its own - decide and declare that 200B paid --- against 300B sent to them. But if the GOV/TREASURY announced that the LP/SP is zero we would triple in PPS over night and if all the DEI stuff in paper and people was zeroed out - the PPS would not increase as Wall Street is not conned.

but as I just posted - Treasury believes - so far - that everything paid to them is a dividend and their investment and LP are still obligations

Do not shoot the messenger as I am long precisely because I think that obligation is in the control of Treasury - they can and will call it zero - and then the reserves F and F report are REAL

Under the terms governing the senior preferred stock, no dividends were payable to Treasury for the third quarter of 2024 and none are payable for the fourth quarter of 2024.
Under the terms governing the senior preferred stock, through and including the capital reserve end date, any increase in our net worth during a fiscal quarter results in an increase of the same amount in the aggregate liquidation preference of the senior preferred stock in the following quarter. The capital reserve end date is defined as the last day of the second consecutive fiscal quarter during which we have had and maintained capital equal to, or in excess of, all of the capital requirements and buffers under the enterprise regulatory capital framework.


As a result of these terms governing the senior preferred stock, the aggregate liquidation preference of the senior preferred stock increased to $208.0 billion as of September 30, 2024 from $203.5 billion as of June 30, 2024, due to the $4.5 billion increase in our net worth in the second quarter of 2024. The aggregate liquidation preference of the senior
preferred stock will further increase to $212.0 billion as of December 31, 2024, due to the $4.0 billion increase in our net worth in the third quarter of 2024. See “Business—Conservatorship and Treasury Agreements—Treasury Agreements” in our 2023 Form 10-K for more information on the terms of our senior preferred stock, including how the aggregate liquidation preference is determined

Do not shoot the messenger ---- this $208 B is viewed by the TREASURY as due to them and as such subtracted from the CASH reserves F and F could keep
https://www.fanniemae.com/about-us/investor-relations/quarterly-and-annual-results

Not what I read and posted -

The Treasury says F and F owe Treasury 200B

Foolish thinking but Okay!! You think the Govt will be associated with that??

That's all good. I'm getting out at $70 next year so it can fall for the govt when they go to sell their shares they got for 0.0000000000001 cent.

Looks like a new cast of characters!! The ooh ahh guy and the Fannie shares canceled guy is gone!! See you guys at 35 a share in a year or two!!

USA Today, said:
Before the financial crisis, Fannie and Freddie were private companies. As the subprime bubble inflated in the early 2000s, they lowered their underwriting standards to remain competitive. When the bubble burst in 2008, the two enterprises were rushed into government-controlled conservatorship.
End of USA Today quote.
My response:

No, FNMA did not "lower underwriting standards to be competitive". Instead, TBTF banks lowered theirs, then sold these toxic loans to Fannie, lying about the quality of loans to get Fannie to buy them. Those of us who follow Fannie know that several of the banks admitted to lying about toxic loans sold to Fannie, but were penalized "pennies on the dollar" for the losses, so banks can go back and do the same thing again. Banks paid billions in fines, but it was peanuts to the losses to Fannie and Freddie's massive loan losses on these toxic loans. They called them "toxic" for a reason.

Merit based seems very subjective so far.

https://www.barrons.com/articles/housing-market-home-buyer-mortgage-rates-5eb62e26?siteid=yhoof2

That's exactly the basis for my upcoming lawsuit, should the warrants be exercised or sold to John Paulson and Bill Ackman. The funny thing is in the warrant agreements it's the definition of "fair value".

They know they effed up lol and the beauty of it all is that the exersize price can not change.

In Ohio it's damn cold today as well. I don't mind visiting Fla or Ca. I just would not own a home in either. If did not have an indoor greenhouse that needed daily tending I would be somewhere warm right now. Fortunately I can hibernate almost as long as I want in my nice big warm house. My greenhouse has a bit of a tropical vibe which helps especially on gray weather days. I have been spending every other winter for 6 months at a time the past 15 years in the Tropics. Thailand, Philippines, Goa, Belize, and Vietnam so far. The Philippines several times as it's been the best and they still love us and don't see that changing.

I posted a link straight from the horse's mouth. The other person quoted the horse's behind. Choose your source.

You will get a response to your question only if you write in proper English and use correct grammar.

No more of this

? --- incomplete sentence nonsense.

""It's the average closing price for the prior 20 trading days."

Memory is very foggy now. Don't I recall share price of Fannie the day before conservatorship being about $7.08? The preceding 19 days I would expect a similar price. That's astronomically different than the 100,000 shares for $1 BS they can up with for exercising the collateral (oops....warrants)."

Guido, I didn't have time when I replied to your message but the 20 day average price of Fannie Mae was $6.80. not the $0.00001 that was written.

Don't Fold
Hold for The Gold

DEI contracting for FNMA, FMCC, FHFA and HUD will be the DOGE Focus. The DOJ believes everything should be Merit based and there is probably substantial savings from cutting out DEI middlemen who have been subcontracting business for decades. This is a real opportunity to lower cost to all homeowners including minority homeowners and potentially use the savings to provide more programs that actually help all people. Some of the DEI based entities involved with the housing and mortgage sectors have built empires off of preferential contracts for decades.

What the hell happened to that YouTube video that was going to send us to double digits a couple of days ago? Hmm, just like old times.

https://www.usatoday.com/story/money/personalfinance/real-estate/2025/02/16/fannie-freddie-release-discrimination-mortgages/78383503007/


Published 17 minutes ago in USA Today !

LOL! It was like hiring a personal injury (neck collar) lawyer to sue a trucking company whose truck ran over you and broke half the boners in your body. The lawyer (government) wins the suit at $3 million and keeps all the money! Then the bar association (conservator) would not go after one of their own who was a crook. Go figure?

You obviously do not understand since the negative on the reserve is in reality the what is left of the capital threshold they have to get to. It does not indicate a negative cash actually on hand...

The 200B has already been paid....and that might even be deemed to what essentially amounts to an overpayment.

Hi Viking61 - I believe Wazee, Bhatti and Ropp are still on appeal. We are not sure about the status of the Fisher lawsuit but Guido thinks it is still alive and Kthomp thinks it has been dismissed. Kelly which is just for Kelly is still on appeal. All of the lawsuits will probably have to be dismissed or settled prior to Exit - potentially Kelly can still be outstanding since it is Kelly v USA in the COFC.

Big Guns are letting us Retails play around,, creating doubt, waiting like
vultures for just the right time to put more of these diamonds in their stash

HOLD - HOLD - HOLD

"The GSEs are expected to hit those requirements by the end of 2026....without a capital infusion proposed by the likes of Ackmann. So, do we really need even his proposal?"

Nope. He's a hedge fund manager, has set a target for his clients of $26-43 or whatever that range was, and will be gone when the share price reaches that level. I think he was trying to soften the resistance with his "go ahead and exercise those warrants" stance. The seasoned shareholder knows the truth about those warrants; the terms of which are much worse than any mob loan.

hhmm

interesting

Maybe that 50B ?? can reduce the LP/SP

thank you

I was not talking ownership of current equity

(and much of what a brokerage owns is their client's money not them ?)

I was talking the business of selling --- selling MBS to the public

i thought that was the issue

I do not think minorities by color or gender have more than a 10% carve out and 90% is JPM and MS and GS and .....

All this DEI or minority stuff - be it selling MBS paper or in the use mortgages side is SMOKE and a red herring - people making insane profit and in control yelling -- LOOK OVER THERE not here

Has to be Minn. ^^^^^

Yes, I agree the insurance rates suck as they are and most of it is already state owned. As far as no property tax maybe I'll take the 5k I save and invest it in FNMA and if my house burns down or blows away I'll be able to build a bigger and better one with my FNMA investment 😎

I agree Intrinsic Value $426.07 per share. Thanks for posting Patswil I agree 100%.

so ---- seriously - you assume with your - they have the capital comment - that F and F will be released from their financial obligation to pay the Treasury 200B

hey - I want that to happen - but until then - per Treasury documents I found and posted - reserves are negative

Picked up more FMCC on the dip. ^^^^^

?
At least where I live and what I know

Property Taxes are kept by localities

So this sounds like a push for power over more GOV money ?

And likely would sub local income tax or sales tax to make up the income -- or cede control of schools and more to one GOVERNOR

Semper, I don’t know, it’s 14 below here and 72 degrees there. I could take a little Florida today😎

AIG wrote - was one of two parties - in tons of CDS deals where the "long side in return for current cash payment" agrees to pay the short side worried about a bond not maturing at PAR

As I understood it - from reading a ton --- AIG was long 100% or nearly 100% of the time (Other big players were either 49-51 or 51-49)

AIG lost a ton of cash being long - the mindset of insurance company - The only big loser by far

Freddie is trading at a huge .78 discount right now!!!

What ?

And who and what is Be3 and Megan Volf

I agree on the ideas and it does not make me happy my taxes go for babysitting schools but Fla will be uninsurable or have only state run insurance which will be astronomical in price. It already is...Ca. is the same in that regard with home insurance. 2 states I would not invest in for the future. And if you have a condo down there you better hope they have reserves enough or expect a huge HOA bill to cover the shortfalls. All states have good and bad but for me the bad outweighs the good down there even though 1/2 my family lives there. Anyway to each his own and if you're happy what I think means nothing.

FOF, all of the JPS suits are included in the Lamberth case.

Jim Lockhart on the cooperation needed to get the GSEs out of conservatorship

https://www.housingwire.com/podcast/jim-lockhart-on-the-cooperation-needed-to-get-the-gses-out-of-conservatorship/

Obviously, some of that is in the mix as well...but so far, all the lawsuits are slow to yield results. I was just looking at the GSEs from a pure economic standpoint and they are within striking distance of completing the actual requirements for meeting the capital on hand requirements.

IMHO, it is more likely the lawsuits will continue to remain stalled. Ackmann getting an IPO style capitalization will probably take more time. Meanwhile, FnF are burning the candle at the other end getting to capital requirements despite all the rhetoric.

Thanks Skeptic7 - It is amazing that he has not ruled yet. Wonder how is health is - will he be able to outlast DJTII - it would be poetic justice if DJTII appointed his replacement? This is really a wild card for the JPS because the resolution of this suit could be the predicate for a broader settlement for all the JPS suits still outstanding.

Because the Govt was dealing with the Govt. Since they were negotiating rules and policies with themselves it was a matter of whatever they felt like.

Kind of a Wild Ride Today,
esp. FMCC