January 2018

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 FDIC from adopting a tortured reading of FIRREA the way FHFA has under HERA.”
Financial Stability Oversight Council Video – c-span.org
Senator Corker’s comments to Treasury Secretary Mnuchin – Youtube
Statement of Secretary Steven T. Mnuchin Before the U.S. Senate Committee on Banking, Housing, & Urban Affairs – treasury.gov
“On housing finance, the current situation of indefinite conservatorship for Fannie Mae and Freddie Mac is neither a sustainable nor a lasting solution. The Administration looks forward to working with Congress to reform America’s housing finance system in a manner that helps consumers obtain the housing best suited to their own personal and financial situations while, at the same time, protecting taxpayers.”
Tweets from today’s Financial Stability Oversight Council meeting.
@joelight
@robblackwellAB
@JohnHeltman
@peteschroeder
Steven Mnuchin says he has options for handling Fannie, Freddie – Washington Examiner
Short Takes: Mnuchin Says Treasury Remains Committed to GSE Reform / The 30-Year FRM Must Survive / More Private Capital, Yes… – Inside Mortgage Finance
Lawmakers press Mnuchin over GSE reform, reg relief and cyber threats – American Banker
Subscription required for access.
Fannie-Freddie Bill Includes Billions for Affordable Housing – Bloomberg
Corker Warner 2.0 Draft Bill – bankrupt.com
Draft of Frannie reform bill makes nod to affordable housing – Seeking Alpha
GSE Reform Draft (#29) Lays Out a New Mortgage Market with a Federal Guarantee but Private Capital; FHFA and Ginnie in Charge; Treasury Can’t Sell GSE Stock – Inside Mortgage Finance
Hearing entitled “The Annual Report of the Financial Stability Oversight Council” – house.gov
Occurs Tuesday, February 6, 2018 at 10:00 AM.
Monday January 29th 2018
Senate To Release Housing Finance Reform Outline: Here’s What It Means For Fannie Mae And Freddie Mac Shareholders – benzinga.com
Pershing Square London Investor Meeting – pershingsquareholdings.com
GSEs on pages 41 and 42.
New Milken Institute Report: The ‘Protected’ GSE Duopoly Must End – Inside Mortgage Finance
FHFA Releases Final FHFA Strategic Plan for FY 2018-2022 – fhfa.gov
FHFA Finalizes Fannie-Freddie Strategic Plan – ABA Banking Journal
Fannie Mae CEO on the GSE’s Past & Future – DS News
Sunday January 28th 2018
Are some anti-GSEs folks whistling past the graveyard?? – Bill Maloni’s GSE Blog
Friday January 26th 2018
New update in the Collins case.
Peter Chapman writes, “The Fifth Circuit will hear oral argument in the Collins appeal during the morning session on Wed., Mar. 7, 2018, in Fort Worth, Tex.”
Small-lender trade groups blast GSE plan – Scotsman Guide
What We’re Hearing: When the GSE Status Quo Ends / Burn This / Peter Wallison for FHFA Director? / Painful Memories at MGIC (The First Cut is the Deepest)… – Inside Mortgage Finance
Fannie Mae, the Goldman Goose that Keeps on Laying Eggs – wolfstreet.com
Tim Howard comments on the Milken Institute paper – Howard on Mortgage Finance
Thursday January 25th 2018
Note to Wallison: FDR is Dead But GSE Reforms Are Alive and Well – Investors Unite
MBA chairman: 2018 will be a year of change – Scotsman Guide
Bringing Housing Finance Reform over the Finish Line – Milken Institute
MBA’s Prediction on GSE Reform: the Legislation will do ‘No Harm’ to Fannie and Freddie – Inside Mortgage Finance
Short Takes: You Cannot be a Guarantor and a Lender / Trade Groups on the Same GSE Page… – Inside Mortgage Finance
How Hedge Funds (Secretly) Get Their Way in Washington – Bloomberg
Fannie Mae Multifamily Closes 2017 with Record Volume of More Than $67 Billion – prnewswire.com
The State of Financial Regulation – cei.org
GSEs are discussed on #4.
Wednesday January 24th 2018
New filing in the Sammons case (W.D. of Texas), click here to view.
Peter Chapman writes, “The Solicitor General has requested that his time to respond to Mr. Sammon’s petition for a writ of certiorari be extended to Feb. 21, 2018.”
Backers of Senate GSE plan reject claims that it’s too conservative – American Banker
Small nonbanks send GSE reform wish list to Senate – American Banker
Subscription required for access.
Short Takes: What if a ‘Conservative’ Ran the FHFA?… – Inside Mortgage Finance
Matt Clarke: 2018 Should be an ‘Exciting Year’ for Mortgage Lenders – MortgageOrb
Fannie Mae CEO reflects on housing 10 years after the financial crisis – marketplace.org
Tuesday January 23rd 2018
Paulson Merger Arbitrage – schroders.com
See page 2 for comments on the GSEs.
Why Freddie Mac and Fannie Mae Stocks Are Potential 10-Baggers – InvestorPlace
Housing And The Recovery – American Action Forum
Mortgage Bankers to Congress: Housing Finance Reform Must be Next Priority – stl.news
The Fatal Conceit of the Government Mortgage Complex – Forbes
A Rogue Treasury Department Turns Toward the 1930s – The Wall Street Journal
Subscription required for access.
Monday January 22nd 2018
New filings in the Bhatti case.
17-cv-02185-0059
17-cv-02185-0060
17-cv-02185-0061
Peter Chapman writes, “The Bhatti Plaintiffs presented Judge Schiltz with a motion for leave to file a supplemental brief late last week in response to some questions Judge Schiltz asked at oral argument on Dec. 21. FHFA and Treasury told the Bhatti Plaintiffs it did not agree with the request. Judge Schiltz entered an order today denying the Bhatti Plaintiffs’ request.”
Watt Weighs In as Lawmakers Seek Elusive Balancing Act on GSE Reform – Investors Unite
Senate Goes Own Way on Housing Finance Reform – situs.com
Short Takes: Fannie, Freddie and the Government Shutdown… – Inside Mortgage Finance
FHFA’s Watt outlines ideas for housing market reform – Financial Regulation News
Sunday January 21st 2018
“Oh Stormy, oh Stormy, bring back our sunny days…..!” – Bill Maloni’s GSE Blog
Friday January 19th 2018
New filing in the Jacobs and Hindes case, click here to view.
Peter Chapman writes, “The Third Circuit entered a briefing schedule yesterday, directing Messrs. Jacobs and Hindes to file their opening brief by Feb. 27, 2018; FHFA and Treasury to file their briefs by Mar. 29, 2018; and that any reply brief be filed by Apr. 12, 2018.”
Craig Phillips audio from the Women in Housing and Finance Event via @DoNotLose – Twitter
Is the Senate planning to move Fannie, Freddie into receivership? – HousingWire
FHFA director tells Congress views on housing finance reform – mpamag.com
Freddie Mac’s David Brickman on GSEs’ Special Role and the Outlook for Multifamily – Commercial Observer
FHFA Director Watt Weighs in on Financial Reform Debate – Mortgage News Daily
Short Takes: GSE Reform is Dead, Here’s Why / Okay, Maybe a 20 Percent Chance of Passage / What’s Riskier? GSE Stock or Bitcoin?… – Inside Mortgage Finance
GSE Shareholders Appeal Loss in ‘Sweep’ Case Against the FHFA – Inside Mortgage Finance
GSE reform heats up, Zelle’s flaw and CFPB’s struggles: Top stories of the week – American Banker
Tim Howard comments on the recent GSE plans – Howard on Mortgage Finance
Tim Howard comments on the audio of Craig Phillips – Howard on Mortgage Finance
Additional tweet about the Craig Phillips speech via @bwadden – Twitter
Thursday January 18th 2018
New filing in the Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations, click here to view.
Peter Chapman writes, “The parties submitted a stipulation to Judge Lamberth this afternoon asking him to extend the briefing schedule on FHFA, Fannie and Freddie’s motions to dismiss by four days. The parties propose that the Class Plaintiffs, Fairholme and Arrowood will file their responses by Feb. 16, 2018, and FHFA, Fannie and Freddie will file their replies by Mar. 16.”
FHFA Enters GSE Reform Debate With Counter-Cyclical Perspectives – Seeking Alpha by Glen Bradford
Treasury, FHFA see eye to eye on housing finance reform, top official says – American Banker
Subscription required for access.
Here is a collection of tweets about the Craig Phillips talk today at the Women in Housing and Finance event:
@ks_lyons
@FHLBanksVoice #1
@FHLBanksVoice #2
@FHLBanksVoice #3
@IanMcKendry13 #1
@IanMcKendry13 #2
@joelight
ICBA Statement on FHFA Letter on Housing-Finance Reform – icba.org
As Fannie and Freddie reform talk heats up, their regulator speaks up – MarketWatch
FHFA Chief Unveils Agency Views on GSE Reform, Worries About Having Too Many ‘SMEs’ – Inside Mortgage Finance
Federal regulator calls for turning GSEs into utilities – Scotsman Guide
Short Takes: House GSE Bill Due by Mid-March?… – Inside Mortgage Finance
Will Tax Reform Derail CRTs? Don’t Bet On It – ValueWalk
This Monopoly Is Holding Back the Mortgage Market – Bloomberg
Mortgage Bankers to Congress: Housing Finance Reform Must be Next Priority – prnewswire.com
Cheat sheet: Senate goes own way on housing finance reform – American Banker
Wednesday January 17th 2018
New filing in the Cacciapalle case (U.S. Supreme Court), click here to view.
Peter Chapman writes, “The Solicitor General filed its brief opposing the Cacciapalle Plaintiffs, Class Plaintiffs and Fairholme’s petition for review to the U.S. Supreme Court today. The Solicitor General tells the High Court that the D.C. Circuit’s majority opinion is correct, there is no split of authority among the circuit courts of appeal, and that shareholders overstate the practical importance of the D.C. Circuit’s decision.”
Fannie-Freddie Regulator Urges Utility Mortgage Guarantors – Bloomberg
“Director Mel Watt wrote that he and agency staff believe the mortgage market should be supported by shareholder-owned utilities with regulated rates of return and an explicit government guarantee of mortgage bonds.”
Federal Housing Finance Agency Perspectives on Housing Finance Reform
FHFA breaks silence on housing finance reform – American Banker
Pence’s economist: Tax bill will encourage companies to issue more equity, less debt – MarketWatch
‘With regard to the administration’s position on housing finance and Fannie Mae and Freddie Mac, Calabria insisted he was not announcing anything for the time being, but, “We do want to see our state-owned enterprises move towards liberalization.”’
Freddie and Fannie Changes – Single Security Moving Forward; Upcoming Events – Mortgage News Daily
Housing Finance Reform: The Stars Are Aligning – lexology.com
Short Takes: Freddie Mac, an Actual Lender? / GSEs Working to Revise MI Rescission Relief Policies… – Inside Mortgage Finance
What Is Executive Privilege And How Is It Invoked By The President? – ibtimes.com
There is a brief mention of the net worth sweep in the last paragraph.
Tuesday January 16th 2018
Credit score changes would saddle banks with risk to help nonbanks – American Banker
Short Takes: GSE Reform, Yes. Passage? No… – Inside Mortgage Finance
Urban Institute: ‘Significant Space’ to ‘Safely Expand the Credit Box’ – MortgageOrb
Fannie Mae Announces Advisory Panel Members for Sustainable Communities Innovation Challenge – PR Newswire
Monday January 15th 2018
A Bad Start on Reforming Fannie and Freddie – Bloomberg
GSE Credit Risk Transfer Loss Expectations Trend Lower – DS News
Saturday January 13th 2018
New filing in the Bhatti case, click here to view.
Peter Chapman writes, “The Court Reporter filed a transcript of the hearing before Judge Schiltz on Dec. 21.”
Financial Regulation and Housing Reform in the Trump Administration, a Public Policy Luncheon with Craig Phillips, Counselor to the Secretary, US Department of the Treasury – whfdc.org
Occurs Thursday, January 18, 2018 12:00 PM – 1:30 PM EST
“Craig Phillips will discuss the state of financial regulation and housing reform in the Trump Administration.  He will give the Administration’s views on the best path forward.”
04/07/2017 – The Man in Charge of Fixing Fannie and Freddie Knows Them All Too Well – NY Times
Friday January 12th 2018
New filing in the Fairholme case, click here to view.
Peter Chapman writes, “A copy of Judge Sweeney’s scheduling order entered this afternoon is (linked above). Judge Sweeney directs that (a) amended complaints be filed by Feb. 22; (b) motions to dismiss be filed by June 22; (c) responses be filed by Sept. 20; and (d) the government’s reply be filed by Dec. 19. Judge Sweeney’s order also denies without prejudice the government’s supplemental motion to dismiss (Doc. 161) that attempted to segregate shareholders based on the dates they acquired their shares.”
Sweeney Jurisdictional Discovery Complete As Government Concedes Point – Seeking Alpha by Glen Bradford
Fed Paid $29.3 Billion To Banks ‘Not’ To Lend In 2017; Gave $80 Billion To Treasury – ZeroHedge
“So, Treasury is receiving a windfall every year from The Fed courtesy of QE. And Treasury receives another windfall from the notorious 2012 profit sweep from Fannie Mae and Freddie Mac.”
Corker-Warner Still Intact, Looking for Another Democrat to Sign on – Inside Mortgage Finance
Thursday January 11th 2018
New filing in the Fairholme case, click here to view.
Peter Chapman writes, “The parties delivered a Status Report to Judge Sweeney today advising that the quick peek procedure is completed and asking her to fix Feb. 22, 2018, as the deadline for the filing of amended complaints in the U.S. Court of Federal Claims.”
Tim Pagliara tweets Warner is out of Corker-Warner 2.0 – Twitter
Tim Howard comments on the CW 2.0 situation – Howard on Mortgage Finance
I have an idea; it’s an old one, but a good one…… – Bill Maloni’s GSE Blog
Rural Borrowers May Feel Impact of GSE Reform Proposals that Tilt Against Community Banks – Inside Mortgage Finance
Freddie Mac names Jacqueline Welch to lead HR, diversity and inclusion – HousingWire
Noel Voted in as NAHB Chair – builderonline.com
“This year, we will work with policymakers to reduce burdensome regulations that are holding back a more robust housing recovery and urge Congress to make comprehensive housing finance reform a top priority,” said Noel.
Wednesday January 10th 2018
New filing in the Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations, click here to view.
Peter Chapman writes, “FHFA, Fannie and Freddie delivered their motions to dismiss the amended complaints filed by the Class Plaintiffs, Fairholme and Arrowood to Judge Lamberth this evening. FHFA and the GSEs tell Judge Lamberth they haven’t breached their contracts with shareholders because the GSEs haven’t been liquidated; in the event of a future liquidation, any value remaining after satisfaction of superior claims will flow to junior preferred shareholders and then to common shareholders. Additionally, FHFA argues, shareholders shouldn’t have expected to receive anything when they purchased their shares. The Third Amendment, FHFA tells Judge Lamberth, is within the range of reason of what GSE shareholders should have expected, especially after HERA modified the contracts between the GSEs and their shareholders. FHFA adds that Judge Lamberth can ignore Delaware and Virginia law because federal law controls.”
Fannie Mae CEO: People Need Calm, Confident Leadership – Fortune
Housing Finance Reform Must Include FHA, Panelists Say – Inside Mortgage Finance
How Could Housing Reform Affect Rural Mortgage Lending? – DS News
Supporting Mortgage Lending in Rural Communities – Brookings Institution
Housing finance reform could weaken rural lending, groups warn – American Banker
Subscription required for access.
Realtors, Licking Their Wounds, Get Ready for Their Next Battle – WSJ
Subscription required for access.
Tuesday January 9th 2018
New lawsuit filed. Voacolo v. Fannie Mae.
17-cv-05667-0001
17-cv-05667-0002
17-cv-05667-0003
17-cv-05667-0004
17-cv-05667-0005
17-cv-05667-0006
17-cv-05667-0007
17-cv-05667-0008
17-cv-05667-0009
17-cv-05667-0010
Peter Chapman writes, “Mr. Voacolo filed a fresh lawsuit in the U.S. District Court for the District of New Jersey on Aug. 2, 2017. Last week, the parties agreed that:
(a) the complaint will be served on Treasury by Jan. 5;
(b) FHFA will move to intervene and Mr. Voacolo won’t object;
(c) motions to dismiss will be filed by Feb. 14; and
(d) Mr. Voacolo will respond to those motions to dismiss by Mar. 16.”
Jamie Dimon: Blockchain is real – Yahoo via Fox Business Video
Monday January 8th 2018
Corker’s MBA GSE Proposal – Seeking Alpha by Glen Bradford
Here’s Why Fannie Mae and Freddie Mac Shares Are Falling Again Today – The Motley Fool
Same article from Yahoo.
Housing finance reform advocate Ed Royce retiring from Congress – HousingWire
Freddie Mac Expands Credit Risk Transfer Program – DS News
Six critical questions as housing finance reform heats up – cujournal.com
FHFA should resist calls to weaken mortgage standards – American Banker
Financial regulations in 2018: Outlook and analysis – rstreet.org
Occurs 01/17/2018 at 12:00 pm – 1:00 pm.
“Among topics to be discussed are…dealing with the government-sponsored enterprises Fannie Mae and Freddie Mac in a way that respects the interests of both taxpayers and private-sector shareholders of the companies.”
The High Stakes in the Looming Fannie and Freddie Overhaul – WSJ
Subscription required for access.
Sunday January 7th 2018
After toughest month in Senate, Corker looks ahead to full agenda in final year in Washington – Times Free Press
Saturday January 6th 2018
New filing in the Jacobs and Hindes case, click here to view.
Peter Chapman writes, “Messrs. Jacobs and Hindes delivered their concise statement explaining their appeal to the Third Circuit yesterday.”
Friday January 5th 2018
Fannie And Freddie Legislation Sounds Intractable – Seeking Alpha by Glen Bradford
Get ready to r-u-m-b-l-e in 2018!! – Bill Maloni’s GSE Blog
Here’s Why Fannie Mae and Freddie Mac Are Dropping Today – The Motley Fool
Same article on Yahoo with reader comments.
Questions on Fannie and Freddie Have Separate Answers – Bloomberg
This is the same article from yesterday.
About that GSE Bill Being Worked on in the Senate… – Inside Mortgage Finance
Hindes has harsh words for overseers of home loan giants Freddie and Fannie – Delaware Business Now
Thursday January 4th 2018
New filings in the Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations.
13-mc-01288-0063
13-mc-01288-0064
13-mc-01288-0065
Peter Chapman writes, “Meaghan VerGow at O’Melveny & Myers LLP entered her appearance today on behalf of Fannie Mae following Jeffrey W. Kilduff and Michael J. Walsh, Jr., withdrawing their appearances late last month.”
Fannie-Freddie Overhaul Might Mint Hedge Fund Riches, Losses – Bloomberg
Fannie and Freddie investors are now at the mercy of Congress – The Real Deal
Fannie And Freddie Face An Uncertain Future – benzinga.com
Spotify’s Non-IPO Really Is Novel – Bloomberg
Some GSE talk in there.
Surprise: In 4Q17, GSE MBS Issuance Actually Increased – Inside Mortgage Finance
GOP Tax Bill Will Boost GSE Earnings by $3 Billion. However… – Inside Mortgage Finance
Short Takes: Senate GSE Bill Due Out This Month? / But Will it Pass?… – Inside Mortgage Finance
GSEs wade into chattel financing – Scotsman Guide
Wednesday January 3rd 2018
New filings in the Sammons case (W.D. of Texas).
17-795-0002
17-795-0003
Peter Chapman writes, “The Owners Counsel of America, Southeastern Legal Foundation, National Association of Reversionary Property, and Profs. Shelley Ross Saxer and James W. Ely, Jr., filed an amicus brief in support of Mr. Sammons yesterday, encouraging the High Court to review whether citizens should be forced to litigate Fifth Amendment taking claims in the U.S. Court of Federal Claims. Additionally, the Solicitor General has requested that the deadline for it to respond to Mr. Sammons’ petition be extended to Feb. 1, 2018.”
Former FDIC Chairman William Isaac mentions the Moelis plan to Rick Santelli on CNBC via @pgray41 – Twitter
This battle over credit scores could shake up the mortgage market – The Real Deal
Tuesday January 2nd 2018
A Fannie Mae Shareholder Says a Future Draw from Treasury Should be Considered “A Return of Stolen Money”
By Gary Hindes
Best Values Among Fannie Mae And Freddy Mac Preferreds – Seeking Alpha
Short Takes: …Stolen GSE Money?… – Inside Mortgage Finance
Key policymakers to watch in 2018 – American Banker
GSEs discussed on slides 6 and 9.
Hatch retirement paves way for makeover atop banking panel – American Banker
Housing market could shift under new tax law – The Washington Post