Wise Man
9 minutes ago
The one in charge of Affordable Housing is Congress, because is the one that pays for it with the tax credits.
FnF, hedge funds, housing developers, etc., just invest in the LIHTC offered by Congress annually.
FnF no longer subsidize the guarantee fee to low- and moderate-income families as mandated in the Charter Act, which was the center of the Public Mission related to Secondary Market Operations (section Purposes), not Special Assistance functions that were kept by GNMA (FHA) when it was spun-off from Fannie Mae in the Privatization Act of 1968 (Source).
Other Public Missions are obsolete, like the "Duty to Serve" ("promote access to mortgage credit throughout the Nation, including central cities, rural areas, and underserved areas").
It's unacceptable that now, as "activities for low- and moderate- income families" with "a return that might be less than the return earned on other activities" (Charter Act), the FHFA, as conservator, compels FnF to sell their NPL and RPL at fire sale prices because it includes a debt forgiveness string, to the hedge funds. This isn't part of the Purpose of the Charter Act about secondary market operations, and this isn't what the mortgage business is about either. This is simply, the sacking of FnF, and this is why Wall Street adores Sandra Thompson's secured deals. For instance, the winner bidder in the last 10 sales of RPL in Fannie Mae, was PIMCO, for 3 years in a row.
FnF's profitability is very small because the insurance business is more about volume. The Net Interest Yield (difference between what they earn and the cost of funding those assets) was 0.67% in Fannie Mae and 0.57% in Freddie Mac, during 2023 (Earnings reports). We don't know what the CFO of Freddie Mac is doing, as now, with the UMBS, there are no excuses about what Freddie Mac pays for its MBS like before, in comparison with Fannie Mae.
This is why the financiers can't be tasked with Affordable Housing, otherwise it goes to the detriment of their solvency and the reason what there is a UST backup of FnF at rates similar to Treasuries, expressly written as part of the Charter dynamics, that, no only no one wants nowadays, but also they refuse to honor it after being tapped in 2008-2010. What lies behind this lengthy conservatorship is an excuse to secure good deals for Wall Street.
There are other costs in the formation of the house prices, which is what affordable housing is about.
For instance, the Net Interest Margin in the United States banks stands at 3.3%. Different business.
navycmdr
10 hours ago
FHFA Announces Inaugural Members of Federal Advisory Committee
on Affordable, Equitable, Sustainable Housing Diverse 20-member committee will
advise Director on housing needs & housing finance policies
IMMEDIATE RELEASE - 06/27/2024
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the inaugural members
of its Advisory Committee on Affordable, Equitable, and Sustainable Housing. The Committee will provide
non-binding advice to FHFA on how its regulated entities (Fannie Mae, Freddie Mac, and the Federal Home Loan Banks)
can best serve as a reliable and responsible source of liquidity and funding for housing finance and
community investment, including both single-family and multifamily housing.
“I thank the Committee members for their willingness to share their deep housing expertise with FHFA,”
said Director Sandra L. Thompson. “The wide-ranging factors driving the Nation’s housing affordability
challenges will be best identified and addressed with perspectives anchored in on-the-ground experience.”
FHFA publicly sought representatives from various fields to focus on an array of housing topics, including
fair housing, tenant advocacy, single-family and multifamily lending and servicing, affordable housing
development, capital markets, and technology.
Each Committee meeting will better inform FHFA's policy development, rulemaking, and community and
public engagement functions as described in the Committee’s charter. The Committee is advisory in
nature with members serving a term of two years. The Committee will convene for its first meeting this fall.
Advisory Committee on Affordable, Equitable, and Sustainable Housing:
-- Laura Arce, Senior Vice President, Economic Initiatives, UnidosUS
-- Nikitra Bailey, Executive Vice President, National Fair Housing Alliance
-- David N. Castillo, CEO, Native Community Capital
-- Ozaa EchoMaker, Leader/Organizer, Bozeman Tenants United
-- Ofo Ezeugwu, CEO & Founder, WYL.co (WhoseYourLandlord)
-- Lisa Gomez, CEO, L+M Development Partners LLC
-- Tiena Johnson Hall, Executive Director, California Housing Finance Agency
-- Alexis Iwanisziw, Senior Vice President, Policy and Communications, Inclusiv
-- Lark Mallory, President & CEO, Affordable Housing Trust Columbus/Franklin County
-- Michael Newman, General Counsel, Insurance Institute for Business & Home Safety
-- Pamela Patenaude, Principal, Granite Housing Strategies LLC
-- Sosseh Prom, National Housing Justice Director, African Communities Together
-- Janneke Ratcliffe, Vice President, Housing Finance Policy Center, Urban Institute
-- Paula Reeves, President, Affordable Housing Division, Land Home Financial
-- Sipho Simela, Founder/CEO, Matrix Rental Solutions
-- Debra W. Still, Vice Chair, Pulte Financial Services
-- Sheri Thompson, Executive Vice President, Head of Affordable Housing, Walker & Dunlop
-- Eileen Tu, Vice President, Mortgage Policy and Credit Development, Rocket Mortgage
-- John Wiechmann, President/CEO, Midwest Housing Equity Group, Inc.
-- Stacie Young, President and CEO, Community Investment Corporation
Visit FHFA’s website for more information about the Agency’s Advisory Committee on Affordable, Equitable, and Sustainable Housing.
###
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.4 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFAExternal link icon, YouTubeExternal link icon, Facebook,External link icon and LinkedInExternal link icon.
Contacts: MediaInq?uiries@FHFA.gov
navycmdr
10 hours ago
(and so did Fannie & Freddie but still held GOVT Hostage)
All 31 big banks subject to stress tests by the Federal Reserve passed the tests,
the Fed announced Wednesday. The stress scenario included a 36% decline in
home prices and an unemployment rate near 10%.
“This year’s stress test shows that large banks have sufficient capital to withstand
a highly stressful scenario and meet their minimum capital ratios,” said Michael Barr,
vice chair for supervision at the Fed.
Congress Ponders Partial Claims Program for VA on par w FHA, Fannie & Freddie
mhogan@imfpubs.com
A bill to establish a partial claim loss-mitigation option at the Department of Veterans Affairs,
bringing the VA home loan program on par with FHA, Fannie Mae and Freddie Mac, needs
some revisions, according to industry participants.
The House Committee on Veterans Affairs Subcommittee on Economic Opportunity recently
held a hearing that included feedback on H.R. 8647, the VA Home Loan Program Reform Act.
Flat Branch Home Loans CEO Karen Kreutziger Powell, testifying on behalf of the Mortgage
Bankers Association, welcomed the legislation, calling it “a standard, simple and time-tested
foreclosure prevention solution available to borrowers in other federal housing programs.”
Powell suggested some changes to the bill. For example, she said VA shouldn’t require the
borrower to repay interest on a partial claim. “No other government program requires a
repayment of the partial claim with interest, and we urge amendments to the bill to achieve
parity with other federal housing programs.”
John Bell, executive director of the VA Home Loan Guaranty Service, said the agency doesn’t
support the partial claims bill without amendments.
Wise Man
23 hours ago
A possible attack with "Chevron" has been defused before it happens, over on the Fanniegate hashtag.
Pagliara's clerk has already began to spread this theory in this message board.
In yesterday's post, it's clear that the statutory provisions aren't up for interpretation, as all roads lead to Rome. Therefore, the Chevron doctrine doesn't apply in our case.
It was also defused the rhetoric "unaccountable Agency" and "abusive conservator".
The Supreme Court is expected to either overturn or limit Chevron deference.
It was also defused the aftermath of a first attack with Chevron, already pointed out by the GOP.
We've got it covered. Trump is the mastermind of the NWS 2.0 (same Common Equity Sweep as before), that began with the Mnuchin-Watt combo on December 2017 ($3B SPS LP increased for free), when they were warned by a shareholder that the SPSPA is void as of 2018, because the 3rd PA amendment had a target of $0 Net Worth in 2018, a breach of the Charter Act that requires the management to have a minimum Net Worth.
The NWS 2.0 continued with Calabria.
A #SCOTUS decision re #Chevron that establishes deference for administrative action, can't be used in #Fanniegate for the "Blame DeMarco doctrine".
He deliberately enacted the supplemental CFR1237.12,enabling a follow-on Separate Acct plan.#Trump built on it: Gifted SPS(NWS 2.0) https://t.co/9N0M7imwTP— Conservatives against Trump (@CarlosVignote) June 26, 2024
NWS 2.0 concealed on the Balance Sheets:
It only shows up on the Income Statements: $0 EPS.