Saturday, February 8, 2014

QUOTE OF THE WEEK

QUOTE OF THE WEEK


QUOTE OF THE WEEK: “I think everyone from the new team at FHFA to members of Congress are starting to wake up to the fact that shutting down the GSEs and replacing them with a new technology platform and federal agency has huge project failure risk.” – A former banking regulator speaking to IMFnews this week

Friday, February 7, 2014

Risk sharing is in fashion

Freddie Mac Sells $1 Billion of Securities Sharing Default Risks

http://www.bloomberg.com/news/2014-02-06/freddie-mac-sells-1-billion-of-securities-sharing-default-risks.html?cmpid=yhoo
Both fannie and freddie are increasing the offering for risk sharing. This is the fix. If all bonds are risk sharing then both fannie and freddie will no longer need the govt backing. Keep the faith and see that both F&F are the future and NOT the banks that caused this mess in the first place.

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From another article:

http://finance.yahoo.com/news/where-mortgage-market-233000354.html

Risk Sharing
A small boost for the private securitization market is coming from government-sponsored enterprises themselves. The GSEs have committed to doing more risk-sharing bonds in 2014, securities created by the GSEs and sold into the private market. The GSEs have made three such offerings, two by Fannie Mae and one by Freddie Mac.
"The GSE risk-sharing transactions have had huge popularity," said Mahdavian.
The Mortgage Bankers Association has been actively pushing a proposal to enable even more risk sharing with GSEs at loan origination, by a borrower "getting private mortgage insurance, covering the first 50% or 60% of the loan (or potential loss)," said Stevens. "This would shift the risk away from the taxpayer and more to the private insurance business" and private sector.
Stevens says loans, under this proposed program, likely would be competitive or potentially cheaper than today's mortgages.
That's because although borrowers would buy more mortgage insurance, the GSEs could lower their guarantee fees because they'd be exposed to less risk.

Thursday, February 6, 2014

Why Fix Something Not Broken?

Why Fix Something Not Broken?

Posted: 
http://www.huffingtonpost.com/karen-hinton/why-fix-something-not-bro_b_4733093.html

Ever since the federal government took control of Fannie Mae and Freddie Mac, Congress has put several plans on the table to "fix" them -- with the exception of one: Let them operate the way they always have, only this time, regulate them properly and ensure they have sufficient capital reserves.
This is largely what Congress did to "fix" the nation's biggest banks that had much more to do with the subprime mortgage crisis than the government-sponsored enterprises, also known as GSEs.
The only difference between now and then is that now the private sector is doing nothing to help low-to-middle income people with good credit become homeowners, and the federal government has actually done things to harm this sector of the housing marketplace.
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READ THE ARTICLE!
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Unbelievably, Congress wants to give these banks a government guarantee on the loans they make -- essentially subsidizing their operations - while the nation's attorney generals and the U.S. Department of Justice bring and settle lawsuits for actions that occurred both before and after the housing debacle.

New Farm Bill Provides Government Insurance for Farmers

absurd_trader  11 minutes ago Flag

New Farm Bill Provides Government Insurance for Farmers

Why aren't Obama and Corker out publicly against this bill and saying that the bill leaves the taxpayer "On the Hook" for farmers' speculation?

The 3 dems plan had fannie living on with 30% market share.

The 3 dems plan had fannie living on with 30% market share.


The 3 dems plan had fannie live with 30% market share FOR the small banks and mortgage brokers. Guess what, the large banks are running from mortgages, they don't want to pay fines or be taken over in a conservatorship from those loans. Guess who is coming in as a major player for mortgages? thats right the little guys that are willing to take the risks, and Fannie will remain for them to do business according to the 3 dems plan. Those 3 dems do speak for the whole dem party. believe that!! They dont come out as 3 without approval of upper dems. Remember in 2008 fannie and freddie were about 35% of the market and 65% was Pls. We all know Pls went in crapper and bankrupt. so the smaller 35%, F&F, saved this countries mortgage system. The dems want it back like 2007. In 2007 fannie, with same shares out, was worth $60, and it was less profitable by about 50% of what it is today. Anyhow..... you decide.

Strange Bedfellows Say Let Fannie and Freddie Live

Strange Bedfellows Say Let Fannie and Freddie Live



A couple of years ago it seemed everyone wanted to kill Fannie and Freddie, but no one had the guts to do it for fear of crashing the economy. Now, in an increasing number of quarters, Fannie and Freddie aren't such dirty words. What that means for shareholders remains to be seen.

Bailout Tracker

Bailout Tracker


http://projects.propublica.org/bailout/

The State of the Bailout

Treasury has made a profit of 12 billion dollars so far.

Tuesday, February 4, 2014

Fannie and Freddie ‘absolutely essential’

Fairholme’s Bruce Berkowitz: Fannie and Freddie ‘absolutely essential’



“Fannie and Freddie saved the day, repaid nearly every penny of cash received from the U.S. Treasury, and can look forward to resuming a prosperous future based just on the aging of assets held,” said Berkowtiz.