March 2018

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 them, telling Judge Martinotti that Mr. Voacolo’s lawsuit fails on multiple levels. FHFA says that when it said “Upon the Director’s determination that the Conservator’s plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship,” in 2008, that didn’t “purport to make any enforceable promises to shareholders about the timing or outcome of that process.” FHFA, like Treasury, urges, Judge Martinotti to dismiss Mr. Voacolo’s complaint with prejudice.”‘
New order in the Sammons case.
Peter Chapman writes, “The U.S. Supreme Court decided yesterday to decline Mr. Sammon’s request for review of the Fifth Circuit’s decision upholding the Tucker Act that steers claims exceeding $10,000 against the government to the U.S. Court of Federal Claims. The High Court’s order is posted at https://www.supremecourt.gov/orders/courtorders/032618zor_1b8e.pdf
Lawmakers consider next steps following Fannie Mae losses – graydc.com
Fannie Mae selling Florida non-performing loans to private investment firm – HousingWire
Freddie Mac Monthly Volume Summary: February 2018 – freddiemac.com
Monday March 26th 2018
New filing in the Voacolo case, click here to view.
Peter Chapman writes, “Treasury moved to dismiss Mr. Vocolo’s lawsuit this evening, and a copy of Treasury’s memorandum in support of that request is (linked above). Treasury argues that section 4617(f) of HERA bars him from filing suit, and that HERA’s shareholder succession provision further bars him from filing suit. Even if those provisions of HERA didn’t exist, Treasury says, Mr. Voacolo is still entitled to nothing because he made a voluntary choice to invest in a highly regulated business and because he never paid any money to the government.”
2nd filing in the Voacolo case, click here to view.
Peter Chapman writes, “FHFA moved this evening to intervene in Mr. Voacolo’s lawsuit for the purpose of filing and prosecuting a motion to dismiss. Mr. Voacolo does not object to FHFA’s request. A hearing on FHFA’s request to intervene is scheduled for May 7, 2018.”
Pershing Square Holdings, LTD. 2017 Annual Report – assets.pershingsquareholdings.com
Page 15 of the report discusses their positions in the GSEs.
Ackman adds to preferred bets on GSEs – Seeking Alpha
Short Takes: Coming Up on 10 Years… – Inside Mortgage Finance
The Fannie Freddie Joke Continues – The National Real Estate Post
Sunday March 25th 2018
The more things change, the more they stay the same – Bill Maloni’s GSE Blog
Saturday March 24th 2018
It’s Time To Buy FNMA Stock & FMCC Stock – hadeplatform.com
Friday March 23rd 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 filed their reply memorandum in support of their motion to dismiss the cases pending before Judge Lamberth this evening. FHFA concedes nothing in its reply. Shareholders should have anticipated the Third Amendment, FHFA tells Judge Lamberth[, because FHFA can do whatever it wants to do]. For that and other reasons, FHFA says it owes shareholders nothing, contractually or otherwise. FHFA urges Judge Lamberth to dismiss the amended complaints, in toto, with prejudice.”
This isn’t a bailout, this is return of stolen funds – American Banker
By Gary Hindes
Paulson Merger Arbitrage – schroders.com
GSEs on page 2.
Time to Stop Taking Non-Serious GSE Reform Plans Seriously – Investors Unite
BAML Says Washington May Be Settling into Status Quo on Reform – Inside Mortgage Finance
Short Takes: CRTs Criticized… – Inside Mortgage Finance
FHFA: Fannie, Freddie Foreclosure Preventions Top 4M in Q4 – DS News
Thursday March 22nd 2018
Timeline Considerations If Fannie And Freddie Are Recapitalized – Seeking Alpha by Glen Bradford
“Crapo at Ben Carson’s Senate Banking hearing says GSE reform “Remains a top priority…” via @joelight – Twitter
Can Fannie and Freddie Provide a Jolt to Buyers Desperate for Affordable Housing? – realtor.com
U.S. Fed buys $2.5 billion of mortgage bonds, sells none – kitco.com
Wednesday March 21st 2018
New filing in the Voacolo case, click here to view.
Peter Chapman writes, “The Justice Department sent Judge Martinotti a letter today confirming that Mr. Voacolo’s complaint was served on Treasury on Feb. 13 and that FHFA and Treasury will file their motions to dismiss on Mar. 26.”
The State of the Debate – Howard on Mortgage Finance
Tuesday March 20th 2018
Don’t let the 30-year mortgage sway housing policy – American Banker
Tim Howard comments on his next post and the CRTs – Howard on Mortgage Finance
Monday March 19th 2018
New order in the Jacobs and Hindes case.
Peter Chapman writes, “The Clerk entered a paperless order this morning extending the time for FHFA, Fannie Mae and Freddie Mac to respond to Messrs. Jacobs and Hindes’ opening brief to Apr. 26, 2018. As a result, any reply brief will be due May 10, 2018.”
Panic, Fear and Regret – MarketPlace
The Next Steps If Housing-Finance Reform Legislation Doesn’t Happen – Inside Mortgage Finance
What We Didn’t Learn From the Bear Stearns Collapse – Bloomberg
GSEs are mentioned briefly.
Freddie Mac selling $116 million in non-performing loans to Goldman Sachs subsidiary – HousingWire
Friday March 16th 2018
ICBA Announces 2018 Community Banking Policy Priorities – icba.org
Revisiting Housing Finance: Why a Federal Role? – Urban Institute
Friday updates.
Industry Awaits Rep. Hensarling’s GSE Reform Plan (Amid Yawns) – Inside Mortgage Finance
Freddie Mac March 2018 Insight – Market Wired
The Bear Stearns bailout didn’t avert the financial crisis, it was the crisis – aei.org
Some GSE talk.
Thursday March 15th 2018
Cowen: White House Doesn’t Favor Killing Fannie and Freddie – Inside Mortgage Finance
Final GSE Affordable Housing Goals Published in the Shadow of Possible Housing Finance Reform – novoco.com
Supreme Court Refusal to Review the “Net Worth Sweep” Does Not Totally Sweep Away Investors’ Claims – The Federalist Society
Revisiting Housing Finance: Why a Federal Role? – Urban Institute
Same link from yesterday, with updates from today.
Wednesday March 14th 2018
New note in the Fairholme case.
Peter Chapman writes, “Another lawyer representing Fannie Mae has requested access to non-public discovery materials, and an updated chart showing who has access to those materials is (linked here).”
Housing market needs an explicit government guarantee – American Banker
By David Stevens
Trump picks CNBC anchor Kudlow as top economic adviser – American Banker
Private mortgage insurers reconsider decision to participate in Fannie Mae’s DTI policy change – The Washington Post
Revisiting Housing Finance: Why a Federal Role? – Urban Institute
Fannie Mae Announces Winner of its Latest Non-Performing Loan Sale – PR Newswire
Charter creep concerns resurface in Freddie’s new risk-sharing pilot – National Mortgage News
FICO’s Lock on Mortgage Credit Scores Comes Under Fire – The Wall Street Journal
Subscription required for access.
Bipartisan push begins in Congress to change CFPB leadership to commission – HousingWire
FHFA is not mentioned in the article.
Tuesday March 13th 2018
New filing in the Jacobs and Hindes case, click here to view.
Peter Chapman writes, “FHFA, Fannie Mae, Freddie Mac and Treasury tell the Third Circuit they need an additional 28 days to respond to Messrs. Jacobs and Hindes’ opening brief.”
A new lawsuit has been filed, Akanthos v. U.S. Click here to view.
Peter Chapman writes, “Akanthos Opportunity Master Fund, L.P., filed a lawsuit against the government in the U.S. Court of Federal Claims last week. Akanthos is represented by the same team of Jones Day lawyers representing Owl Creek and Appaloosa. Akanthos owned more than $137 million of junior preferred stock as of Aug. 16, 2016. Because this case is related to the other cases complaining about the Net Worth Sweep, it’s been assigned to Judge Sweeney.”
Another new lawsuit has been filed, CSS v. U.S. Click here to view.
Peter Chapman writes, “CSS, LLC, filed a lawsuit against the government in the U.S. Court of Federal Claims last week. CSS is represented by the same team of Jones Day lawyers representing Owl Creek, Appaloosa and Akanthos. CSS acquired nearly $16 million of junior preferred stock following conservatorship and prior to the Net Worth Sweep. Because this case is related to the other cases complaining about the Net Worth Sweep, it’s been assigned to Judge Sweeney.”
GSEs and that damn hotel in California – Bill Maloni’s GSE Blog
The Troubled Legacy of Dodd-Frank – ricochet.com
House prices: What the Fed hath wrought – rstreet.org
Fannie Mae Announces Sixth Sale of Reperforming Loans – PR Newswire
Fannie Mae looking to offload nearly $2 billion in re-performing loans – HousingWire
Senate reg relief bill opens new front in credit-scoring battle – National Mortgage News
“A late addition to the legislation sponsored by Banking Committee Chairman Mike Crapo, R-Idaho, would direct the Federal Housing Finance Agency to review credit-scoring alternatives for Fannie Mae and Freddie Mac mortgage purchases. The FHFA currently relies on FICO’s classic scoring model.”
Senate lawmakers seek to gut fair housing – The Philadelphia Tribune
Monday March 12th 2018
A new lawsuit has been filed, Appaloosa v. U.S. Click here to view.
Peter Chapman writes, “Appaloosa and some if its affiliates filed a lawsuit against the government in the U.S. Court of Federal Claims last week. Appaloosa is represented by the same team of Jones Day lawyers representing Owl Creek. A different set of Jones Day lawyers, you’ll recall, represents the Rafter Plaintiffs. Appaloosa owned approximately $750 million of junior preferred stock as of Aug. 16, 2016. Because this case is related to the other cases complaining about the Net Worth Sweep, it’s been assigned to Judge Sweeney.”
Fannie And Freddie Can Never Leave Hotel California – Seeking Alpha by Glen Bradford
Cramer: Larry Kudlow is the leading contender to replace Gary Cohn as Trump’s top economic advisor – CNBC
Larry Kudlow has tweeted this and this about the GSEs in the past.
Mortgage insurers crash on Freddie Mac partnership with Arch Capital – Seeking Alpha
RBC says mortgage insurers are a buy – Seeking Alpha
Report of the 30-year mortgage’s death was an exaggeration – National Mortgage News
Friday March 9th 2018
New filing in the Arrowood case, click here to view.
Peter Chapman writes, “Arrowood filed its amended complaint yesterday in the Court of Federal Claims, and a copy is (linked above).”
New filing in the Cacciapalle case, click here to view.
Peter Chapman writes, “The Cacciapalle Plaintiffs filed their amended complaint yesterday in the Court of Federal Claims, and a copy is (linked above).”
New filing in the Fairholme case.
Peter Chapman writes, “Fairholme, the Fisher Plaintiffs, the Rafter Plaintiffs, the Reid Plaintiffs and Washington Federal filed amended complaints in the Court of Federal Claims yesterday. Because those documents make reference to confidential discovery materials, these amended complaints were filed under seal. Redacted copies of the amended complaints should be publicly filed in the coming weeks in accordance with Judge Sweeney’s second amended protective order (Doc. 256).”
New filings in the Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations.
13-mc-01288-0073
13-mc-01288-0075
Peter Chapman writes, “David R. Stickney at Bernstein Litowitz Berger & Grossman, LLP, in San Diego, has joined Mr. Cane’s legal team, and Judge Lamberth has welcomed him to appear and participate in this case.”
New filings in the Rafter case.
14-740-0004
14-740-0026
Peter Chapman writes, “Pershing Square filed an updated corporate disclosure statement in the Court of Federal Claims yesterday. A copy of yesterday’s filing (Doc. 26) and a copy of Pershing Square’s original filing (Doc. 4) are (linked above).”
Rule Changes at Fannie Mae, Freddie Could Add $400 to Monthly Mortgage Payments – The Street
Equifax Wins In Latest Version Of Senate Bank Bill – Huffington Post
What We’re Hearing: …The DeMarco-Bright Plan Critiqued / Finally, a Sensible and Fair Proposal on GSE Reform – Inside Mortgage Finance
Freddie Mac Prices $1.8 Billion Securitization of Re-Performing Loans – Market Wired
Tim Howard comments on the Perry appeal decision – Howard on Mortgage Finance
The Raid on AIG’s Equity Was Illegal via @VernMcKinley – Twitter
GSEs are not mentioned.
Collapse Of New Zealand “Guarantor” Puts 10,000 Homes At Risk – ZeroHedge
GSEs are not mentioned.
Thursday March 8th 2018
Oral Argument Recording in the Collins case – ca5.uscourts.gov
Mortgage market doesn’t need explicit government backing – American Banker
Short Takes: Risk Sharing Denting GSE Profits?… – Inside Mortgage Finance
Senate Lawmakers Seek to Gut Fair Housing – The Washington Informer
Fannie Mae Seeks Second Taxpayer Bailout – heartland.org
U.S. Fed Buys $3.4 Bln Of Mortgage Bonds, Sells None – kitco.com
The risk lurking in the US mortgage market – CNN Money
Wednesday March 7th 2018
Seizing the “10 Percent Moment” – Investors Unite
Mnuchin Says Dodd-Frank Bill Will Be Good for Economy and Banks – Bloomberg (Video)
GSEs are discussed at 2:23.
“Sen. Dean Heller, R-Nev., has an amendment to not use Fannie and Freddie as a piggy bank unless it’s pay for housing finance reform.” via @IanMcKendry13 – Twitter
Fannie Mae Prices $1.007 Billion Connecticut Avenue Securities Risk Sharing Deal – fanniemae.com
GSE Investors Twisting in the Wind – Inside Mortgage Finance
Short Takes: Gary Cohn’s Resignation and the GSEs / Don’t Assume Anything / Fannie Mae’s ‘10 Percent Moment’… – Inside Mortgage Finance
GSE credit risk transfer programs are a housing reform model – National Mortgage News
Subscription required for access.
Tuesday March 6th 2018
Fannie has reached the 10% moment, after all – rstreet.org
A Conversation about Housing Finance Reform – urban.org
Tim Howard comments on the GSE CRTs – Howard on Mortgage Finance
Annaly Capital Management, Inc. Publishes White Paper on Credit Risk Transfer – Business Wire
New York Fed Suggests a Few Improvements to the GSE CRT Programs – Inside Mortgage Finance
A Glimpse at Life Without the 30-Year Fixed-Rate Mortgage – Forbes
Monday March 5th 2018
NMHC Perspective: Growth Plans – multihousingnews.com
Growth Area #3 discusses housing finance reform.
Following Big Reston Lease, Fannie Mae Looks To Sell 3 Fairfax County Buildings – bisnow.com
Sunday March 4th 2018
More GSE Stuff and less Trump… – Bill Maloni’s GSE Blog
Saturday March 3rd 2018
Credit Risk Transfer and De Facto GSE Reform – papers.ssrn.com
FNMA Stock and FMCC Stock Should Be Much Higher – hadeplatform.com
Friday March 2nd 2018
New filing in the Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations case, click here to view.
Peter Chapman writes, “The Class Plaintiffs, Fairholme, Arrowood and FHFA have agreed that FHFA may filed a single 45-page reply in support of its motion to dismiss and will do so on or before Mar. 23.”
Is The Freddie Mac Bailout A Faux Bailout? – Seeking Alpha by Glen Bradford
“The @AEI whacky plan for the #GSEs: “Wait for Congress to Step in during a crisis”. Watch them stumble in answering questions about pro cyclicality & bank lending” video via @JoshRosner – Twitter
New CRL and Urban League Report: Senate Housing Proposal Would Be A Blow To Affordable Housing And Harmful To Overall Housing Market – nulwb.iamempowered.com
Draft Senate GSE Reform Bill Would Scale Back Affordable Housing Lending – novoco.com
What We’re Hearing: …Jeb Hensarling’s GSE Bill / Does the AEI have the Ear of the White House?… – Inside Mortgage Finance
Thursday March 1st 2018
Implement AEI-Heritage-R Street GSE Plan and Honor Shareholder Contracts – cei.org
Senate GSE Reform Proposal: A Blow to Affordable Housing and Harmful to the Overall Housing Market – responsiblelending.org
U.S. Fed buys $3 bln of mortgage bonds, sells none – kitco.com