GSE Links

Tuesday July 17 2018

New filing in Collins vs. FHFA, click here to view.

Peter Chapman writes, “The Fifth Circuit released its opinion today finding that FHFA is unconstitutionally structured.  Nevertheless, the Fifth Circuit also finds that sec. 4617(f) of HERA blocks shareholders from complaining about the Net Worth Sweep while the GSEs are in conservatorship.  The three judges serving on the panel reviewing Judge Atlas’ decision don’t see eye-to-eye on everything.”

Reason: Federal Court Holds FHFA Unconstitutional

Market Watch: Can the mortgage market predict the presidency?

Monday July 16 2018

Junior preferred shareholder-plaintiff Josh Angel released a paper following FHFA, Fannie and Freddie’s filing of their motion to dismiss his lawsuit.  In this paper, Mr. Angel outlines his reasoning that the GSEs’ preferred shares had and still have an implicit federal government guaranty of payment and sets the stage for a response he’ll file by the Sept. 10 deadline. A copy of Mr. Angel’s paper may be viewed here.

The Economic Times: Ten years of the US financial crisis: The days that roiled the world markets

Friday July 13 2018

New filing in Collins vs. FHFA, click here to view.

Peter Chapman writes, “FHFA delivered a copy of the order Judge Schiltz entered dismissing the Bhatti Plaintiffs’ lawsuit to the Fifth Circuit.”

New filing in Jacobs vs. FHFA, click here to view.

Peter Chapman writes, “The Third Circuit has tentatively scheduled oral argument in Jacobs v. FHFA on Sept. 5, 2018, in Philadelphia, but might be rescheduled for another day that week. ”

New filing in Bhatti vs. FHFA, click here to view.

Peter Chapman writes, “Judge Schiltz entered his order dismissing the Bhatti Plaintiffs’ lawsuit this past week. The Bhatti Plaintiffs have filed a notice of appeal indicating they will ask the Eighth Circuit (where the Read More

Thursday June 14th 2018

Good news everyone. I have found someone to take over gselinks. This site will continue to be a source for daily GSE news. Check back next week for more.

Monday June 11th 2018

Bad news everyone, this is going to be the last daily update. I find myself with less and less time each day to run the site. Thanks for visiting and in the end I know the truth will prevail. Follow @DoNotLose for the court filings.

Dalrymple column: Let Fannie and Freddie do what they do well – postindependent.com

Freddie Mac Announces Securitization of Reperforming Loans – DS News

Affordable Housing vs. GSE Reform – The MReport

Sunday June 10th 2018

Back and rested; point me toward the bad guys! – Bill Maloni’s GSE Blog

Friday June 8th 2018

Reviewing GSE Recapitalization Mechanics And Potential Outcomes – Seeking Alpha by Glen Bradford

Fannie Mae: Change in Mortgage Market ‘Remarkable’ and ‘Intense’ – biglawbusiness.com

Thursday June 7th 2018

New filing in the Angel case, click here to view. Peter Chapman writes, “Fannie, Freddie and FHFA have asked the Court to extend their time to file a motion to dismiss Mr. Angel’s lawsuit to July 12, 2018.” Peter Chapman writes further, “Judge Boasberg entered a paperless order this morning directing Mr. Angel to file any objection by June 11, 2018.”

Jerome Corsi Live Stream – Thursday, June 7, Review Current Events – Youtube Jerome Corsi discusses the Net Worth Sweep.

Wednesday June 6th 2018

In Multifamily Finance, Fannie and Freddie Are Still the Elephant in the Room – Commercial Observer

Short Takes: Hey, Hands Off of GSE Multifamily / What Ed DeMarco Wanted To Do… – Inside Mortgage Finance

GSE Outlook Stays the Course – multihousingnews.com

Tuesday June 5th 2018

Shifting the risk of mortgage defaults

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Thursday May 31st 2018

The Government Creates Another Housing Bubble – The Wall Street Journal Subscription required for access.

Washington Post: Fannie and Freddie will soon offer modern mortgages for the gig economy – HousingWire

Owning a home important in the Valley; that’s why I voted for this act – mercedsunstar.com “In Congress, I have opposed loan limit reductions which would make it harder for Californians to get mortgages. I supported federal housing finance reform that winds down Freddie Mac and Fannie Mae while maintaining an explicit federal guarantee to create stability in the housing market.” By Jim Costa

Wednesday May 30th 2018

New filing in the Jacobs and Hindes case, click here to view.

The Beat Goes On: GSE Credit Scores Much Higher Than on Ginnie Product – Inside Mortgage Finance

Tuesday May 29th 2018

Putting The Real H In HUD – American Action Forum

Short Takes: All FHFA Wants is Parity… – Inside Mortgage Finance

Fannie, Freddie want to make mortgages easier for gig-economy workers – Miami Herald

U.S. taxpayers need stronger protection from the next housing crash – MarketWatch

Moody’s: Looser GSE mortgage guidelines credit negative for CRT transactions, some prime deals – Business Insider

Rescission Package Threatens Promise of the Capital Magnet Fund – novoco.com

Friday May 25th 2018

The Dodd-Frank vote stands in the way of helping working class and low-income families – The Hill

Jerome Corsi Live Stream – Friday, May 25, 2018 – update current events – Youtube Jerome Corsi calls for the end of the Net Worth Sweep.

Thursday May 24th 2018

ICBA Statement on Capital Proposal from FHFA Director Mel Watt – icba.org

CDS Creativity Is Everywhere – Bloomberg Scroll down to ‘Fannie and Freddie.’

Senators Divided on Prospects for Housing-Finance Reform Legislation this Year – Inside Mortgage Finance

U.S. Fed

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Monday April 30th 2018

New filings in the Jacobs and Hindes case. 17-3794-0018 17-3794-0019 Peter Chapman writes, “Treasury and FHFA filed their briefs in the Third Circuit last week.”

New filing in the Rafter case, click here to view. Peter Chapman writes, “The Rafter Plaintiffs ask Judge Sweeney to join Fannie Mae as a nominal defendant to their lawsuit in the U.S. Court of Federal Claims against the government. The Rafter Plaintiffs tell Judge Sweeney that joinder is necessary at this time for the court to properly consider the Rafter Plaintiffs’ derivative shareholder claims. The government has advised the Rafter Plaintiffs it opposes the request, saying it is premature, and Fannie Mae’s indicated it opposes the request.”

Mnuchin on the future of Fannie Mae and Freddie Mac – Fox Business Video

Treasury unveils ‘fix’ for restoring Fannie Mae, Freddie Mac – Fox Business

Steven Mnuchin: Legislation on Fannie, Freddie won’t happen this year – Washington Examiner

GSE reform unlikely to happen this year: Mnuchin – American Banker

Mnuchin wants GSE reform in 2019. There’s a problem with that – American Banker

Analyst Now Sees Less Than 10% Chance Congress Tackles Fannie, Freddie Reform This Year – benzinga

Fannie Mae Announces Scheduled Release of First Quarter 2018 Financial Results – markets.businessinsider.com “Fannie Mae today announced plans to report its first quarter 2018 financial results on Thursday morning, May 3, 2018, before the opening of U.S. financial markets.”

Friday April 27th 2018

New Mortgage Bonds May Prove a Double-Edged Sword for Investors – Bloomberg

What We’re Hearing: GSE Reform? How About 2021? / The Return of Ed DeMarco? / No Political ‘Protection’ for Fannie and Freddie… – Inside Mortgage Finance

Thursday April 26th 2018

Redacted Complaint Analysis Reveals Clues About GSE Discovery Material – Seeking Alpha by Glen Bradford

US housing: how

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Friday March 30th 2018

Time’s up: GSE reform ain’t happening this year – American Banker

Treasury’s Vampire Strategy Towards Mortgage Giants Fannie Mae and Freddie Mac (Draw Lets Treasury Feed Off Of Fannie and Freddie Profits For Years To Come) – confoundedinterest.net

What We’re Hearing: Not Much Time Left for the GSE ‘Gang of Four’ / Don (Heart) Fannie and Freddie… – Inside Mortgage Finance

Fannie Mae Completes First Credit Insurance Risk Transfer Transaction of 2018 on $16.9 Billion of Single-Family Loans – PR Newswire

Table 1: Quarterly Draws on Treasury Commitments to Fannie Mae and Freddie Mac per the Senior Preferred Stock Purchase Agreements – fhfa.gov The draw is documented on page 2.

Thursday March 29th 2018

FHFA Updates Progress on Fannie Mae and Freddie Mac Credit Risk Transfer Programs – fhfa.gov

FHFA Report Details Progress on the 2017 Scorecard for Fannie Mae and Freddie Mac – fhfa.gov

FHFA: Here are 10 things the GSEs did to improve access to credit in 2017 – HousingWire

Risks of lax underwriting far outweigh the rewards, MBA chief warns – National Mortgage News

U.S. Fed buys $2.9 bln of mortgage bonds, sells none – kitco.com

A Lost Decade – American Action Forum

Wednesday March 28th 2018

NLIHC Joins Civil Rights and Other Stakeholder Groups on GSE Reform – nlihc.org

Column: End crony housing trust funds – detroitnews.com

New York foreclosure firm accused of cheating Fannie Mae out of millions – HousingWire

FHFA Announces June 2019 Implementation of the New Uniform Mortgage-Backed Security – fhfa.gov

Freddie Mac Statement on the June 2019 Implementation of the New UMBS – marketwired.com

Tuesday March 27th 2018

New filing in the Voacolo case, click here to view. Peter Chapman writes, ‘FHFA delivered its motion to dismiss to Judge Martinotti (yesterday). FHFA echoes Treasury’s arguments and adds to

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Wednesday February 28th 2018

A new lawsuit has been filed. Owl Creek v. U.S., click here to view. Peter Chapman writes, “Owl Creek filed a lawsuit against the government in the U.S. Court of Federal Claims late last week. Owl Creek is represented by a team of corporate restructuring lawyers led by Bruce Bennett at Jones Day. Owl Creek owned approximately $2 billion of junior preferred stock in the GSEs acquired post-conservatorship and prior to imposition of the Net Worth Sweep. Count III of the complaint, at pp. 43-44, says HERA’s succession clause imposed duties on the government to honor the GSEs’ contracts and look out for non-controlling shareholders’ interests, and the government breached those duties. Count IV of the Complaint, at pp. 44-47, says the government breached its implied-in-fact contract with Owl Creek and other junior preferred shareholders.”

Peter Chapman further writes, “Owl Creeks’ team of lawyers at Jones Day has requested access to non-public discovery materials, and an updated chart showing who has access to those materials is (linked here).”

New note in the Collins case. Peter Chapman writes, “Chief Judge Stewart and Judges Haynes and Willett are the three-judge panel who will hear argument in the Collins case before the Fifth Circuit one week from today in Fort Worth. See http://www.ca5.uscourts.gov/clerk/calendar/1803/27.cthse.htm

“ICBA’s @HaynieRon on GSE reform: There are modifications and reforms that need to happen…” via @ICBA – Twitter

Get the Housing Industry Out of the U.S. Tax Code – Bloomberg View The GSEs are not mentioned.

End of Watt’s Term as FHFA Director Seen as Leverage for Republicans in Congress – Inside Mortgage Finance

Freddie Mac Portfolio Up $2.4 Billion – The MReport

Fannie & Freddie Bailout Request Highlights Need for Housing Finance Reform – atr.org From February 19th.

Tuesday February 27th 2018

New

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Wednesday January 31st 2018

Redline Comments On Bob Corker’s GSE Bill Draft 29 – Scribd By Josh Rosner

Corker’s GSE Bill Raises a Host of Questions. Five or Six MBS Guarantors Need to be Up and Running For it to Work – Inside Mortgage Finance

“Elizabeth Warren throwing some pretty cold water on the draft Corker-Warner housing overhaul…” via @peteschroeder – Twitter

Housing Policy Didn’t Cause the 2007 Crash – The Wall Street Journal Subscription required for access.

Tim Howard comments on the Corker/Mnuchin meeting – Howard on Mortgage Finance

Tim Howard comments on the Draft of C-W 2.0 – Howard on Mortage Finance

Blog: Treasury’s Mnuchin talks GSE reform – Scotsman Guide

Trump speech bodes ill for banks’ D.C. priorities – American Banker

Mayor, Senator…Now What? – chattanoogapulse.com

Milken Institute White Paper: GSE duopoly must end, enabling new firms to compete with Fannie Mae (or any successors) – ValueWalk

Tuesday January 30th 2018

New filing in the Cacciapalle case (U.S. Supreme Court), click here to view. Peter Chapman writes, “The Class Plaintiffs delivered a reply brief to the High Court today reminding the Justices that there is a split of authority among the Circuit Courts of Appeal that requires resolution.”

New filing in the Fairholme case (U.S. Supreme Court), click here to view. Peter Chapman writes, “Fairholme delivered a reply brief to the U.S. Supreme Court today urging the Justices to accept its appeal for review and rein in the unlimited power FHFA thinks it has under HERA.”

New filing in the Perry case (U.S. Supreme Court), click here to view. Peter Chapman writes, “Perry Capital delivered a reply brief to the High Court today. Perry tells the Justices that review is warranted to halt the “lawless government overreach” exemplified by the Net Worth Sweep and to prevent the

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Friday December 29th 2017

Time to reform Fannie and Freddie is now – American Banker

Fannie and Freddie regain capital reserves; withhold billions from Treasury – HousingWire

What We’re Hearing: The Biggest Story of 2018? Fannie and Freddie, Of Course… – Inside Mortgage Finance

MBS Analysis: Looks Like the GSEs are Taking Market Share from FHA – Inside Mortgage Finance

Tax Overhaul Tops Tumultuous Year for Finance, With GSE Reform Possible in 2018 – Morning Consult

Thursday December 28th 2017

Better luck next year… – Bill Maloni’s GSE Blog

FHFA seeks input on GSE credit scoring system – Dodd Frank Update Subscription required for access.

Fannie and Freddie make more money per employee than almost any other company – HousingWire

Expected on GSE Reform: Reconstituted Versions of Fannie and Freddie but… – Inside Mortgage Finance

Wednesday December 27th 2017

Schroder GAIA Paulson Merger Arbitrage Quarterly Fund Update Third Quarter 2017 – schroders.com

Private Capital, Not Crony Government Housing Trust Funds, Should Finance Housing Markets – The Daily Signal

Credit risk transfer bonds rise to one of best performing debts of 2017 – HousingWire

Investors are betting billions that your neighbor won’t default on his mortgage in 2018 – The Real Deal

Tuesday December 26th 2017

Fannie and Freddie Continue in Limbo while Congress Looks for a Permanent Fix for the Housing Finance Market – cato.org

50 Companies to Watch – Bloomberg GSEs are number 21.

The Next Big Trade for Bond Investors Is Betting on U.S. Homeowners – Bloomberg

Add civil rights voices to housing policy reforms – The Philadelphia Tribune

10 top mortgage stories of 2017 – National Mortgage News GSEs are on slide 10.

Federal Housing Finance Agency, Treasury reinstate capital reserves for Fannie, Freddie – Financial Regulation News

Financials, Fannie And Freddie: One Analyst’s Big Ideas For

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Thursday November 30th 2017

The Economics of Reform – Howard on Mortgage Finance

ICBA Statement on GSE Profit Sweep Discussions – icba.org

Fannie And Freddie Watch: The Latest News Out Of Washington – benzinga

How Tax Reform Could Accelerate GSE Reform And Not Necessarily In A Good Way – Forbes

Acting Ginnie Mae President Michael Bright Makes His Pitch to Have Ginnie be the Big Kahuna of Government MBS – Inside Mortgage Finance

U.S. Fed buys $3.4 billion of mortgage bonds, sells none – Reuters

Wednesday November 29th 2017

New filing in the Roberts case, click here to view. Peter Chapman writes, “FHFA lawyer Howard Cayne at Arnold & Porter advised the Seventh Circuit about the Sixth Circuit’s decision to reject Ms. Robinson’s challenge of the Net Worth Sweep based on her APA claims and Judge Sleet’s decision to reject Messrs. Jacobs and Hindes’ state law claims to invalidate the Third Amendment.”

New notation in the Bhatti case. Peter Chapman writes, “The Court Clerk made a notation (Doc. 50) on the docket sheet indicating that Judge Schlitz has rescheduling the hearing on FHFA and Treasury’s motions to dismiss and the Bhatti Plaintiffs’ motion for summary judgment. The hearing will be held at 9:00 a.m. on Thurs., Dec. 21, 2017, in Minneapolis.”

Fannie-Freddie Watchdog Stokes Quiet Fight With White House – Bloomberg

Fannie and Freddie are fighting with the Trump administration over $7.7B – The Real Deal

Short Takes: Watt and Treasury, is there a Deal? / GSE MBS Investors May Want More Yield… – Inside Mortgage Finance

Fannie Mae Completes Final Credit Insurance Risk Transfer Transaction of 2017 on $16 Billion of Single-Family Loans – fanniemae.com

Fannie Mae transfers $16 billion in credit risk for last transaction of 2017 – HousingWire

Tax reform threatens to drain GSEs’ dwindling capital –

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Tuesday October 31st 2017

Freddie Mac Reports Both Net Income and Comprehensive Income of $4.7 Billion for Third Quarter 2017 – freddiemac.com

Another Quarterly Treat for Treasury, Another Trick on Everyone Else – Investors Unite

Freddie Mac set to pass along $4.7B to U.S. after Q3 results – Seeking Alpha

Freddie Mac made billions in 3Q banner earnings, reaches “$1 trillion of mortgages” – HousingWire

Thanks to Legal Settlement, Freddie Mac has Blowout 3Q17: $7.19 Billion Profit (Pre-Tax); Almost $1B in Hurricane-Charges – Inside Mortgage Finance

Short Takes: Keeping an Eye on GSE Hurricane Charges / The Tax Bite / In the End, Treasury Wins No Matter What… – Inside Mortgage Finance

@FreddieMac 10-Q sweep language Q3 (above) v 2Q 2017 via @presvnconsv – Twitter

Freddie Mac’s (FMCC) CEO Don Layton on Q3 2017 Results – Earnings Call Transcript – Seeking Alpha

Investors Unite Teleconference on Legal Updates – Investors Unite Occurs Wednesday, November 1, 2017, at 10:00 a.m. ET.

Treasury Stole Fannie Mae, Freddie Mac Stock, 7th Circ. Told – law360.com Subscription required for full access.

House Financial Services Chairman Jeb Hensarling will not run for re-election in 2018 – CNBC

Vocal, powerful critic of Wall Street rules leaving Congress – Reuters

GSEs mull news of Hensarling retirement – Seeking Alpha

Residential Mortgage Finance Symposium – events.sfindustry.org Occurs Tuesday and Wednesday of next week.

Monday October 30th 2017

New filing in the Roberts case. Peter Chapman writes, “An audio recording of the hearing before the Seventh Circuit this morning is now available at http://media.ca7.uscourts.gov/sound/external/cc…mp3 at no charge.”

Fannie Mae Announces Scheduled Release of Third Quarter 2017 Financial Results – prnewswire.com “Fannie Mae today announced plans to report its third quarter 2017 financial results on Thursday morning, November 2, 2017, before the opening of U.S. financial markets.”

NAMB Policy Position

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