December 2017

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 2018 – benzinga.com
2018 Compliance & Regulation Outlook: ‘Stars are aligned’ for GSE reform – National Mortgage News
Subscription required for access.
Monday December 25th 2017
Time To Buy The GSEs – Seeking Alpha
Sunday December 24th 2017
Fannie And Freddie Are Here To Stay – Seeking Alpha by Glen Bradford
Paulson Stung By Mallinckrodt: Says Latest Mnuchin Remarks Bullish For Fannie Mae – ValueWalk
Friday December 22nd 2017
New filing in the Jacobs and Hindes case, click here to view.
Peter Chapman writes, “The Third Circuit received Messrs. Jacobs and Hindes’ appeal today and docketed that proceeding at No. 17-3794 as reflected in the paperwork (linked above). More paperwork will be filed in the next couple of weeks.”
Bob Corker, Corrupt? What a Surprise – Rolling Stone
By Matt Taibbi.
Fannie Mae, Freddie Mac Preferred Shareholders Could See Huge Upside From Conversion Process – benzinga.com
Balancing Risk vs. Reward – The MReport
4th Amendment – The Truth About Fannie and Freddie
Fitch: GSEs will need large Treasury draw next year – Scotsman Guide
Nevada’s middle class needs mortgage market reform: Gedde – Reno Gazette Journal
Thursday December 21st 2017
New filing in the Jacobs and Hindes case, click here to view.
Peter Chapman writes, “Messrs. Jacobs and Hindes delivered their Notice of Appeal to the U.S. District Court in Delaware today, indicating their intent to initiate an appeal in the Third Circuit.”
New filing in the Bhatti case, click here to view.
Peter Chapman writes, “Judge Schiltz heard oral argument this morning in Minneapolis, and a copy of the Courtroom Deputy’s minutes is (linked above). Judge Schiltz took FHFA and Treasury’s motions to dismiss and the Bhatti Plaintiffs’ motion for summary judgment under advisement and will issue a written decision. This morning’s hearing was transcribed by Debra Beauvais — who can be reached at (612) 664-5102 — and she will be preparing a transcript. Because a court reporter was on site this morning, the Court Clerk will not be releasing an audio recording of the hearing.”
Fannie Mae and Freddie Mac now allowed to hold $3B capital reserve – HousingWire
Statement from FHFA Director Melvin L. Watt on Capital Reserve for Fannie Mae and Freddie Mac – fhfa.gov
Treasury Department and FHFA Modify Terms of Preferred Stock Purchase Agreements for Fannie Mae and Freddie Mac – treasury.gov
Treasury, FHFA strike deal to let GSEs retain ‘limited’ capital – American Banker
Fannie, Freddie Permitted by U.S. to Keep $3 Billion Buffers – Bloomberg
Mortgage Giants Cut Deal With Treasury to Cover Expected Losses – NY Times
Fannie, Freddie will now keep some capital reserves – MarketWatch
Fannie and Freddie get band-aid instead of surgery – nasdaq.com
Surprise: FHFA and Treasury Agree to $3 Billion Capital Buffer for the GSEs. Watt Declares a (Taxpayer) Draw Will be Necessary Because of New GOP Tax Bill – Inside Mortgage Finance
Short Takes: Freddie Mac Might Avoid a Treasury Draw / Exigent? / This is Just the Beginning / The Big Winners: Holders of GSE Junior Preferred – Inside Mortgage Finance
Fannie Mae, Freddie Mac receive $3 billion capital cushion – Reuters
Capital Buffer Deal May Buy Enough Time to Get Down to Business on GSE Reform – Investors Unite
Treasury Will Allow Fannie, Freddie to Retain Small Capital Buffer – WSJ
Subscription required for access.
How the Great Fannie and Freddie Dustup Could End – WSJ
Subscription required for access.
FHFA to allow GSEs to retain capital – Seeking Alpha
“Initial Impressions on the @FHFA @USTreasury amendments…” via @JoshRosner – Twitter
Tim Howard comments on the capital buffer – Howard on Mortgage Finance
‘A Sea Change Underway’: Fannie Mae, Freddie Mac To Retain Capital Again – benzinga.com
ICBA Statement on Fannie, Freddie Capital Reserve – icba.org
Hensarling Responds to FHFA Dividend Payment Changes – house.gov
MBA Statement on FHFA Establishing Limited Capital Cushion – mba.informz.net
“Corker says Treasury/FHFA decision to let Fannie and Freddie…” via @Zachary – Twitter
Ep. 5 R Street’s Pollock on Jumpstart Legislation, Capital Reserves for SIFIs – Investor Unite Podcast
FHFA Releases 2018 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions – fhfa.gov
Housing Finance at a Glance: A Monthly Chartbook, December 2017 – urban.org
Proposed Legislation: Fannie And Freddie Are Here To Stay – There Is No Alternative – ZeroHedge
Wednesday December 20th 2017
Trump to sign tax reform into law that triggers Fannie, Freddie Treasury draw – HousingWire
Short Takes: Time for the GSEs to Sharpen Their Pencils / It’s Only $19 Billion… – Inside Mortgage Finance
Politics and The Tax Bill’s Impact on Fannie/Freddie; Inflation and Housing – Mortgage News Daily
Tax Cut Expected to Trigger Fannie, Freddie Infusion – WSJ
Subscription required for full access.
Trump’s agenda in 2018: What’s next? – Fox Business
Fannie, Freddie inch closer to dumping FICO for alternate credit scores on mortgage approvals – MarketWatch
Tuesday December 19th 2017
Are The Stars Aligning For Fannie And Freddie Reform? – law360.com
Subscription required for access.
What MBA Expects to See from GSE Reform: ‘De Novo’ Versions of Fannie and Freddie, Multiple Guarantors… – Inside Mortgage Finance
Monday December 18th 2017
GSEs not going anywhere – WSJ – Seeking Alpha
The 20 companies that create the most profit per employee – Business Insider
Fannie Mae is #1, and Freddie Mac is #3.
Drip, drip, drip…. – Bill Maloni’s GSE Blog
FHFA Publishes Fannie Mae’s and Freddie Mac’s Underserved Markets Plans for Duty to Serve Program – fhfa.gov
Turnaround Expert Donald Layton Keeps Freddie Mac Profitable – chiefexecutive.net
Citi, AIG and BofA among US groups facing $50bn tax plan hit via @BobBrinker – Twitter
Freddie Mac Releases 2018 STACR Issuance Calendar – Market Wired
Fannie, Freddie recommit to financing chattel loans – National Mortgage News
Subscription required for access.
Sunday December 17th 2017
Government Shifts Gears on Fannie Mae, Freddie Mac – WSJ
Subscription required for access.
“@SenBobCorker makes up to $7 million a year from his real estate holdings”…via @davidsirota – Twitter
Just Corker being Corker. No mention of the GSEs.
Friday December 15th 2017
Preserving the GSEs is key to preserving affordability – American Banker
Fannie-Freddie Talks Set Competition as the Cost of Freedom – Bloomberg
2017 FSOC Annual Report – treasury.gov
GSEs are discussed on pages 15 and 40 of the report.
Chart 4.5.7, on page 39, shows agency and non-agency RMBS Issuance.
In the definitions section on page 148, Treasury recognizes the GSEs are privately owned entities.
Housing finance needs fixing, but it doesn’t need Fannie or Freddie – American Banker
What We’re Hearing: …Would the White House Dare Fire Mel Watt? / Probably Not? / Shrinking the GSE Role… – Inside Mortgage Finance
The American dream is at stake if low-income earners can’t own a home – The Hill
Freddie and Fannie May Get Another Jumpstart – Mortgage News Daily
Mortgage Banking Experts Call on Georgia Delegation to Address Housing Finance Reform – prnewswire.com
Thursday December 14th 2017
Tax cuts mean Frannie to draw from Treasury in Q1 – Seeking Alpha
5 Features of Successful Housing Finance Reform – americanprogress.org
Short Takes: Keeping Tabs on GSE Dividends / The GOP Tax Plan and DTAs… – Inside Mortgage Finance
MBA Chief Dave Stevens: The GSE Capital Buffer is a Distraction – Inside Mortgage Finance
Stop the Presses: A GSE Bill Passes the House Financial Services Committee but… – Inside Mortgage Finance
Transferring Credit Risk on Mortgages Guaranteed by Fannie Mae or Freddie Mac – cbo.gov
U.S. Fed buys $4.4 billion of mortgage bonds, sells none – Reuters
MBA supports bills impacting GSEs, exams, licensing – doddfrankupdate.com
Subscription required for full access.
Wednesday December 13th 2017
Finance Bill Big for Fannie Mae, Freddie Mac – U.S. News
Short Takes: GSE Dividend Payments: All Systems Go? / Cutting GSE Shareholders out of the Equation?… – Inside Mortgage Finance
Blog: House leader budges on GSE reform – Scotsman Guide
Hill bill ensures Fannie and Freddie don’t withhold taxpayer dollars – riponadvance.com
Rep. Hill sponsors bill to prevent Treasury from selling GSE preferred shares – Financial Regulation News
Full Committee Legislative Markup Part 3 – YouTube
Tuesday December 12th 2017
New filing in the Perry case (U.S. Supreme Court), click here to view.
Peter Chapman writes, “The Justice Department says it’s very busy and needs another month to file a response with the High Court in Perry v. Mnuchin.”
New filing in the Cacciapalle case (U.S. Supreme Court), click here to view.
Peter Chapman writes, “The Justice Department says it’s very busy and needs another month to file a response with the High Court in Cacciapalle v. FHFA.”
New filing in the Fairholme case (U.S. Supreme Court), click here to view.
Peter Chapman writes, “The Justice Department says it’s very busy and needs another month to file a response with the High Court in Fairholme v. FHFA.”
No guarantee government will back Fannie Mae, Freddie Mac debt: Dick Bove – Fox Business Video
Go to 03:45
A Decade Out From the Financial Crisis, Fannie Mae Has Bounced Back in a Big Way – Fortune
Oppose H.R. 4560, the “GSE Jumpstart Reauthorization Act of 2017” – civilrights.org
Full Committee Legislative Markup Part 2 – YouTube
Markup of Jumpstart 2.0
Are Fannie and Freddie’s Foes Driving GSE Reform? – Investors Unite
Height Securities updates on GSEs – Seeking Alpha
Treasury Disappoints on Two Major Financial Market Issues – Forbes
What’s Next For Fannie And Freddie? Here’s What We Know So Far – benzinga
David Stevens: Here’s the MBA view on GSE reform – HousingWire
Cheat Sheet: House banking panel’s 14-bill marathon – American Banker
Ginnie Mae: Outstanding Principal Balance Edges Closer to $2 Trillion – DS News
Monday December 11th 2017
Other than that, How Was the Play, Mrs. Lincoln – Bill Maloni’s GSE Blog
The Industry Shows Concern (Once Again) about GSE Technology and Potential Abuses – Inside Mortgage Finance
Markup of …HR 4560 – house.gov
Markup of Jumpstart 2.0 occurs Tuesday 12/12 at 10 a.m.
What the Fed’s tapering means for mortgage-backed securities – nasdaq.com
Housing Trust Fund bill conveys threat to affordable housing – mcknightsseniorliving.com
Friday December 8th 2017
Prospects for housing finance reform ‘brighten’ and may favor shareholders – MarketWatch
Hensarling’s Nasty and Counterproductive Twist on Jumpstart – Investors Unite
Fannie and Freddie: Should they stay or should they go? – American Banker
Here’s What Else Tax Reform Means: Another Bailout of Fannie and Freddie – situs.com
Scroll down to read the article.
What We’re Hearing: …Time to Exempt Fannie and Freddie from the GOP Tax Overhaul? / Who Lost the GSEs? / Hensarling’s Change of Heart, Why?… – Inside Mortgage Finance
Hensarling is Ready to Deal on GSE Reform, but Will it Happen? – Inside Mortgage Finance
Hensarling calls for dismantling of Fannie, Freddie – mpamag.com
Thursday December 7th 2017
New filing in the Roberts case, click here to view.
Peter Chapman writes, “David Thompson at Cooper & Kirk, representing the Roberts Plaintiffs, tells the Seventh Circuit in a letter filed today that the Sixth Circuit and Judge Sleet read HERA way too expansively. “HERA confers on FHFA a limited set of enumerated powers . . . and pillaging the Companies’ balance sheets is not among them,” Mr. Thompson says. Mr. Thompson urges the Seventh Circuit to tell FHFA it’s gone too far and follow Judge Brown’s dissent.”
New filing in the Saxton case, click here to view.
Peter Chapman writes, “Mr. Thompson sent a similar letter to the Eighth Circuit today.”
New filing in the Collins case, click here to view.
Peter Chapman writes, “Mr. Thompson continued his letter writing campaign today by telling the Fifth Circuit to follow Judge Brown’s reasoning.”
Chatter in DC: on GSE Reform, Treasury may (very) soon need to assert leadership…via @RobTVDC – Twitter
Federal guarantee of MBS is a twofer for big banks – The Hill
Why Fannie And Freddie Have A Path To Survival – benzinga.com
H.R. 4560: To suspend contributions by Fannie Mae and Freddie Mac to the Housing Trust Fund… – govtrack.us
It looks like Jumpstart 2.0.
H.R. 4560 Text via @RobTVDC – Twitter
Tim Howard comments on Jumpstart 2.0 – Howard on Mortgage Finance
Retiring industry leader Corso shares his outlook – Scotsman Guide
If Rep. Hensarling Gets His Way, GSE Shareholders Would be Wiped Out – Inside Mortgage Finance
Fannie and Freddie Died But Were Reborn, Profitably: QuickTake – The Washington Post
Wednesday December 6th 2017
Hensarling Lays Out Principles for Housing Finance Reform, Expresses Support for Bipartisan Approach – house.gov
Hensarling signals breakthrough in mortgage reform – Politico
Breaking down Hensarling’s GSE reform overture – American Banker
HFSC Chairman Hensarling Makes it Official – He’s Open to Idea of U.S. Backing Mortgages, but Still Wants to Kill Fannie and Freddie – Inside Mortgage Finance
Jeb Hensarling: Fannie and Freddie Must Be Wound Down – Breitbart
It’s happening: Senate #GSE reform proposal preserves Fannie and Freddie (in smaller form) and builds on existing system. via @Woellert – Twitter
Lawmakers’ Plans to Overhaul Fannie and Freddie Come Into Focus – Bloomberg
Since the Summer, a Sweet Rally for Fannie Mae, Freddie Mac Common. Meaning? – Inside Mortgage Finance
Breaking Down Non-Performing Loan Sales – DS News
Freddie Mac Further Expands STACR Program With SHRP Series – marketwired.com
Sustainable Housing Finance:…Part IV – Youtube
Tuesday December 5th 2017
New filing in the Sammons case (W.D. of Texas), click here to view.
Peter Chapman writes, “Mr. Sammons delivered a petition in the U.S. Supreme Court last week seeking review of the Fifth Circuit’s decision upholding the Tucker Act and saying that claims against the government for more than $10,000 are properly handled in the U.S. Court of Federal Claims. The government’s response is due by Jan. 2, 2018.”
Fannie And Freddie: Capital Buffer Climax – Seeking Alpha by Glen Bradford
Here’s what else tax reform means: another bailout of Fannie and Freddie – MarketWatch
How will tax reform impact housing? – cuinsight.com
Short Takes: When it Comes to GSE Issues, No Lobbying Please… – Inside Mortgage Finance
FHFA Updates CSP Project: $661.6 Billion of Issuance Thus Far for Freddie; A Fear of Price Differentials? – Inside Mortgage Finance
Freddie Mac December Insight – marketwired.com
FHFA: GSEs Sold Over 82,000 Nonperforming Loans Since 2014 – ABA Banking Journal
FHFA Releases Resources for GSEs’ Single Security, Securitization Platform Implementation – ABA Banking Journal
Monday December 4th 2017
New filings in the Rop case.
17-cv-00497-0038
17-cv-00497-0039
Peter Chapman writes, ‘The Rop Plaintiffs delivered two documents to Judge Maloney today:
(A) a response to FHFA’s filing sharing the Sixth Circuit’s ruling in the Robinson case, pointing out that the Sixth Circuit indicated its ruling might be different if — which Ms. Robinson did not allege — there were a constitutional defect in HERA; and
(B) in reply to their motion for summary judgment telling Judge Maloney that he should “vacate the Net Worth Sweep and strike down the provisions of HERA that make FHFA one of the most powerful, least accountable agencies in our Nation’s history.”‘
Taxes, GSEs, and Other Rants – Bill Maloni’s GSE Blog
FHFA Updates Progress on the Single Security Initiative and Common Securitization Platform – fhfa.gov
As ‘Zero Capital’ Day Approaches, Senate Moves to Create a GSE Bill – Inside Mortgage Finance
Sick and Tired of Schumer and Others Continually Lying about Tax Cuts and Debt – American Thinker
Friday December 1st 2017
New filing in the Rop case, click here to view.
Peter Chapman writes, “FHFA shared copies of the Robinson and Jacobs decisions with Judge Maloney this morning to further urge him to follow the Perry decision, dismiss the Rop Plaintiffs’ lawsuit challenging the Third Amendment, and deny their pending motion for summary judgment raising constitutional challenges to FHFA’s structure.”
New filing in the Saxton case, click here to view.
Peter Chapman writes, “FHFA lawyer Howard Cayne at Arnold & Porter advised the Eighth 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 filing in the Collins case, click here to view.
Peter Chapman writes, “FHFA lawyer Howard Cayne at Arnold & Porter advised the Fifth 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 filing in the Bhatti case, click here to view.
Peter Chapman writes, ‘The Bhatti Plaintiffs delivered their reply in support of their motion for summary judgment to Judge Schiltz today pressing forward with their constitution claims, and telling the court that it “should vacate the Net Worth Sweep and strike down the provisions of HERA that make FHFA one of the most powerful, least accountable agencies in our Nation’s history.”‘
What We’re Hearing: Yes, There’s a Senate GSE Reform Bill in the Works… – Inside Mortgage Finance
Hearing entitled “Sustainable Housing Finance: Private Sector Perspectives on Housing Finance Reform, Part IV” – house.gov
Occurs Wednesday, December 6, 2017 10:00 AM.