May 2018

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 buys $2 billion of mortgage bonds, sells none – euronews.com
Wednesday May 23rd 2018
Ten Years of Conservatorship: The Status of the Housing Finance System – senate.gov
Statement of Melvin L. Watt, Director, FHFA, Before the U.S. Senate Committee on Banking, Housing, and Urban Affairs – fhfa.gov
FHFA’s 2017 Report to Congress – fhfa.gov
“FHFA will propose a new risk-based capital rule for Fannie and Freddie “in the very near future,” Watt says” via @katyodonnell_ – Twitter
Fannie-Freddie Overhaul Plan Is Dead for Now, Senators Say – Bloomberg
Watt Concerned Long-Term Conservatorship Hinders GSE Management, Plans – Inside Mortgage Finance
Republicans warn Fannie and Freddie are growing, not shrinking – Washington Examiner
Fannie Mae Tries to Get Out of Conservatorship – The National Real Estate Post
Good video here.
Watt: “These Conservatorships are Unsustainable” – DS News
MBA Secondary: Can Fannie and Freddie help fix the housing shortage? – HousingWire
Tuesday May 22nd 2018
A new lawsuit has been filed. Angel v. Fannie Mae, et al.
Joshua J. Angel Statement
18-cv-01142-0001
Peter Chapman writes, “After sitting on the sidelines for the past two years following his appearance before the Judicial Panel on Multidistrict Litigation, Joshua J. Angel sued Fannie Mae, Freddie Mac and the individuals serving as GSE directors at the time the Net Worth Sweep was imposed, yesterday in the U.S. District Court for the District of Columbia. A copy of Mr. Angel’s complaint and a statement he released yesterday explaining how his lawsuit differs from other lawsuits challenging the net worth sweep are (linked above). Mr. Angel, you’ll recall, authored Government Perfidy and Mismanagement of the GSEs in Conservatorship posted at http://gselinks.com/pdf/Govt_Perfidy_Angel.pdf in Feb. 2016. Mr. Angel is a well-respected corporate restructuring lawyer with decades of experience resolving companies’ business, legal and financial problems. For some reason, the Clerk assigned Mr. Angel’s lawsuit to Judge Boasberg; it should be shuffled to Judge Lamberth in short order. Mr. Angel’s complaint takes a fresh approach to challenging the net worth sweep and is worth pondering.”
New filing in the Collins case, click here to view.
Peter Chapman writes, “The Collins Plaintiffs’ tell the Fifth Circuit, in a letter dated yesterday, they should ignore the Seventh Circuit’s Roberts opinion because the panel doesn’t address the constitutional claims raised in this litigation.”
New filing in the Rop case, click here to view.
Peter Chapman writes, “The Rop Plaintiffs tell Judge Maloney that the Seventh Circuit’s Roberts opinion neither addresses nor undermines the constitutional claims presented in this lawsuit challenging FHFA’s freedom to do whatever its pleases without oversight by at least one of the three branches of our government.”
Too Big to Fix: No One Can Figure Out What to Do With Fannie and Freddie – Bloomberg
Frannie reform keeps getting kicked down the road: Bloomberg – Seeking Alpha
Freddie Mac Closes First SHRP Deal of the Year – globenewswire.com
Is Mel Watt Setting up Another Bailout? – Forbes
Reg relief’s done. What’s next for banks? – American Banker
Blog: White House holds keys to GSE reform – Scotsman Guide
Monday May 21st 2018
New filing in the Fairholme case, click here to view.
Peter Chapman writes, “Judge Sweeney entered an order extending the date for the government to repond to Fairholme’s bid to name Fannie and Freddie as nominal defendants to 14 days following her ruling on the government’s motion to dismiss shareholders’ complaints.”
A new lawsuit has been filed. Patt v. U.S., click here to view.
Peter Chapman writes, “Joseph S. Patt, Christy L. Silvester, and Leonard Ellis filed a lawsuit in the U.S. Court of Federal Claims this past Friday. The Patt Plaintiffs are represented by Matthew M. Riccardi at Richards, Kibbe & Orbe LLP in New York. The trio purchased more than $11.4 million of junior preferred shares in the GSEs prior to the Net Worth Sweep. “[T]he de facto nationalization of a private corporation under the guise of a ‘conservatorship’ by a federal agency and an ‘investment’ by the Treasury is unprecedented,” the shareholders tell Judge Sweeney. But in addition to taking all of the GSEs equity value, the government also took shareholders’ rights to complain, which is something of value for which the trio wants just compensation. The Patt Plaintiffs tell Judge Sweeney that sections 4617(d)(1) and (2) of HERA required FHFA to repudiates contracts (like the instruments governing the junior preferred stock) “within a reasonable period” and the near-four year period between placing the GSEs into conservatorship and implementation of the net worth sweep exceeds the range of reason.”
A new lawsuit has been filed. 683 Capital Partners v. U.S., click here to view.
Peter Chapman writes, “683 Capital Partners, LP, filed a lawsuit in the U.S. Court of Federal Claims this past Friday. 683 Capital is represented by Matthew M. Riccardi at Richards, Kibbe & Orbe LLP in New York. As of April 16, 2012, 683 Capital owned more than $10 million of junior preferred stock in the GSEs.”
Peter Chapman further writes, “The Clerk assigned this case to Judge Wolski. I suspect the Clerk selected the wrong judge’s name from a drop-down menu and will reassign it to Judge Sweeney in short order.”
Pershing Square (Bill Ackman) Q1 2018 Investor Letter – Seeking Alpha
The GSEs are on page 9 of the letter.
Treasury Official Sees Major Impact from Single Security – Inside Mortgage Finance
Will “Freeing” Fannie/Freddie Improve Housing Finance? – Mortgage News Daily
Fannie Mae and Freddie Mac: Déjà vu All Over Again – cagw.org
U.S. Treasury advocates for financial reform and digitalization – HousingWire
Friday May 18th 2018
Fannie Mae Advocacy Ban Doesn’t Stop Lawyer From Pushing Views – Bloomberg
GOP to investigate Fannie Mae’s reported lobbying violation – Washington Examiner
Hensarling: ‘Congress Must Enact Sustainable Housing Finance Reform’ – DS News
Thursday May 17th 2018
New filing in the Fairholme case, click here to view.
Peter Chapman writes, “The government is asking Judge Sweeney, as she did in the Rafter case, to stay briefing on the question of joining the GSEs to the litigation until 14 days following her decision on the government’s motion to dismiss. Fairholme doesn’t oppose the request.”
White House Could Preempt Congress’ Inaction on GSEs – Mortgage News Daily
“Rep. Hensarling on what he wants to see new FHFA Director — or legislation — do with GSEs…” via @zigassoc – Twitter
Bill Ackman Comments on Fannie Mae and Freddie Mac – gurufocus.com
Jeb Hensarling says he won’t seek Trump nomination, will return to Texas – Washington Examiner
In making his remarks, Hensarling took himself out of consideration to become the regulator in charge of the bailed-out mortgage giants Fannie Mae and Freddie Mac, which he has pushed to reform.”
Wednesday May 16th 2018
Ten Years of Conservatorship: The Status of the Housing Finance System – senate.gov
Occurs Wednesday, May 23, 2018
Coming Uniform MBS Could Have Side Effects for Fannie Mae – Inside Mortgage Finance
Tuesday May 15th 2018
New filing in the Saxton case, click here to view.
Peter Chapman writes, “The Saxton Plaintiffs sent a letter to the Eighth Circuit yesterday urging the Court not to embrace the Seventh Circuit’s Roberts decision as quickly as FHFA encourages.”
New recording in the Saxton case.
Peter Chapman writes, “The Saxton case was argued before the Eighth Circuit this morning, and an audio recording of the 40-minute hearing is available at http://media-oa.ca8.uscourts.gov/OAaudio/2018/5/171727.MP3 at no charge.”
“Fed vice chair nominee Richard Clarida on Fannie, Freddie conservatorship…” via @josephlawler – Twitter
Fannie Mae Announces Sale of Non-Performing Loans – PR Newswire
Eighth Circuit Hears Dispute Over Mortgage Profits – Courthouse News Service
Trump administration officially nominates Michael Bright to lead Ginnie Mae – HousingWire
Monday May 14th 2018
Freddie Mac adds John Krenitsky as SVP, chief compliance officer – HousingWire
GSE Credit Window for Purchase Loans Opened Slightly in 1Q18 – Inside Mortgage Finance
Friday May 11th 2018
New filing in the Jacobs and Hindes case, click here to view.
Peter Chapman writes, “FHFA sent the Third Circuit a letter advising the court about the Seventh Circuit’s decision affirming dismissal of the Roberts Plaintiffs’ lawsuit.”
New filing in the Fairholme case, click here to view.
Peter Chapman writes, “Fairholme filed a redacted copy of its amended complaint in the U.S. Court of Federal Claims this evening.”
Incumbents Beware: Mortgage Market Conditions Can Tip the Next Election – Investors Unite
How Will Delays in GSE Reform Impact Housing? – The MReport
FHFA releases plan to increase access to credit for limited English proficiency borrowers – HousingWire
Thursday May 10th 2018
New filing in the Fairholme case, click here to view.
Peter Chapman writes, “Mirroring the Rafter Plaintiffs’ request, Fairholme ask Judge Sweeney to join Fannie Mae and Freddie Mac as nominal defendants in its lawsuit against the government.”
New notation in the Fairholme case.
Peter Chapman writes, ‘The Court Clerk made a notation on the docket sheets in Fairholme v. U.S., Arrowwood v. U.S., Cacciapalle v. U.S., Fisher v. U.S., Rafter v. U.S., and Washington Federal v. U.S., this afternoon saying, “On May 9, 2018, the court received a written ex parte communication–a letter–from a Fannie Mae/Freddie Mac shareholder. The court did not read the letter; instead, it directed the clerk of court to return the letter to the shareholder. The court has not, and will not, entertain ex parte communications from Fannie Mae/Freddie Mac shareholders.”‘
Peter Chapman continues, “The Court Clerk made a similar notation today on the docket sheets in Akanthos v. U.S., Appaloosa v. U.S., CSS v. U.S., Mason Capital v. U.S., and Owl Creek v. U.S.”
New filing in the Appaloosa case, click here to view.
Peter Chapman writes, “Judge Sweeney entered an order this morning granting Appaloosa’s request to amend its complaint to add Palomino as a plaintiff.”
2nd filing in the Appaloosa case, click here to view.
Peter Chapman writes, “Appaloosa formally filed its First Amended Complaint this afternoon.”
New filing in the Rafter case, click here to view.
Peter Chapman writes, “Judge Sweeney entered an order this morning placing the Rafter Plaintiffs’ request to add Fannie Mae as a nominal defendant on hold until 14 days after she rules on the government’s omnibus motion to dismiss.”
New filing in the Bhatti case, click here to view.
Peter Chapman writes, “Treasury delivered a copy of the Seventh Circuit’s decision upholding dismissal of the Roberts Plaintiffs’ lawsuit to Judge Schiltz today.”
New filing in the Rop case, click here to view.
Peter Chapman writes, “Treasury delivered a copy of the Seventh Circuit’s decision in Roberts v. FHFA to Judge Maloney today, urging him to follow the Seventh Circuit’s reasoning and dismiss the Rop Plaintiffs’ lawsuit.”
Appellate court: Fannie, Freddie investors can’t sue federal agency for diverting profits to US Treasury – Cook County Record
RBS reaches $4.9 billion deal to settle U.S. mortgage bond investigation – Reuters
Wednesday May 9th 2018
New filing in the Saxton case, click here to view.
Peter Chapman writes, “FHFA advised the Eight Circuit yesterday about the government’s recent victory in the Seventh Circuit.”
New filing in the Jacobs and Hindes case, click here to view.
Peter Chapman writes, “Messrs. Jacobs and Hindes have asked the Third Circuit to entertain oral argument.”
New filing in the Appaloosa case, click here to view.
Peter Chapman writes, “With the government’s consent, Appaloosa is amending its complaint to add Palomino Fund Ltd. as a plaintiff in its lawsuit challending the Net Worth Sweep.”
New filing in the Collins case, click here to view.
Peter Chapman writes, “FHFA alerted the Fifth Circuit yesterday about the government prevailing in the Seventh Circuit.”
New filing in the Rafter case, click here to view.
Peter Chapman writes, “Our government wants Judge Sweeney to place the Rafter Plaintiffs’ request to add Fannie Mae as a nominal defendant on hold until she has ruled on its omnibus motion to dismiss. Alternatively, the government suggests that it respond to the Rafter Plaintiffs’ request to add Fannie Mae as a nominal defendant on Jan. 18, 2019, which is 30 days after briefing on the omnibus motion to dismiss concludes.”
GSE Reform Is Dead – Long Live GSE Reform! – Urban Institute
Will Trump win in 2020? Look to the mortgage market – The Hill
Tuesday May 8th 2018
New filing in the Voacolo case, click here to view.
Peter Chapman writes, “Judge Martinotti entered an order last week granting FHFA and Treasury’s motions to dismiss Mr. Voacolo’s complaint because he didn’t file any response.”
Fannie Mae Promotes Kimberly Johnson From Chief Risk Officer To COO – Forbes
What the $15 Billion Rescission Proposal Could Mean for Housing and Community Development – novoco.com
Monday May 7th 2018
GSE Investors Lose Roberts Case – Seeking Alpha by Glen Bradford
Freddie Mac Is Quietly Helping Out the U.S.’s New Mortgage Kings – Bloomberg
Fannie Mae and Freddie Mac press further into rental housing – Financial Times
GSE Mission Drift – American Action Forum
Figuring Out Who Might Succeed Mel Watt as FHFA Director – It’s Complicated… – Inside Mortgage Finance
Sunday May 6th 2018
Slow Going, Not Many GSE Cats and Dogs – Bill Maloni’s GSE Blog
Friday May 4th 2018
Karen Petrou on Why Treasury Will Recraft Housing Finance – fedfin.com
BRIEF-Fannie Mae Announces Fourth And Fifth Front-End Credit Insurance Risk Transfer Transactions – Reuters
Thursday May 3rd 2018
New filing in the Voacolo case, click here to view.
Peter Chapman writes, “Magistrate Goodman entered an order this morning allowing FHFA to intervene in Mr. Voacolo’s lawsuit.”
New filing in the Roberts case, click here to view.
Peter Chapman writes, “The Seventh Circuit released its opinion today affirming the District Court’s ruling dismissing the Roberts Plaintiffs’ lawsuit.”
A View on Affordable Housing – Howard on Mortgage Finance
Another Year, Another Reminder the Net Worth Sweep Must End – Investors Unite
Fannie Mae Reports Net Income of $4.3 Billion and Comprehensive Income of $3.9 Billion for First Quarter 2018 – fanniemae.com
Fannie Mae reports comprehensive income of $3.9 billion – HousingWire
BRIEF-Fannie Mae Posts Quarterly Net Interest Income Of $5.23 bln – Reuters
Fannie Mae’s (FNMA) CEO Tim Mayopoulos on Q1 2018 Results – Earnings Call Transcript – Seeking Alpha
Fannie Mae Moves in a Positive Direction – The MReport
Fannie Mae Has a Blowout 1Q18, Will Make a $938M Dividend Payment to Treasury – Inside Mortgage Finance
FHFA Updates Progress on Fannie Mae and Freddie Mac Credit Risk Transfer Programs – fhfa.gov
NAR Sees $6.5B in GSE Profits and Asks the FHFA for Reductions in G-Fees, More – Inside Mortgage Finance
Short Takes: Investors Unite: Mel Watt is the Only One ‘Tuned into Reality’… – Inside Mortgage Finance
Wednesday May 2nd 2018
“Looking at” GSE Reform for Ten Years – and Counting – Investors Unite
Freddie Mac CEO: Our Greatest Innovation Is Credit Risk Transfer – GlobeSt.com
Tuesday May 1st 2018
Freddie Mac Reports Net Income of $2.9 Billion and Comprehensive Income of $2.2 Billion for First Quarter 2018 – freddiemac.com
Freddie Mac Q1 earnings increase driven by tax reform – HousingWire
Freddie Mac’s (FMCC) CEO Don Layton On Q1 2018 Results – Earnings Call Transcript – Seeking Alpha
Fannie Mae CEO on potential privatization – Fox Business Video
“@RepHensarling on housing finance: Favor Ginnie Mae like wrap over private label RMBS and phase out (not liquidate) $FNMA/$FMCC…” via @apark_
The GSE Reform Bust Blues: Worrying About Mel Watt’s (Potential) Successor at the FHFA – Inside Mortgage Finance
BRIEF-Fannie Mae Prices $1.05 Bln Connecticut Avenue Securities Risk Sharing Deal – Reuters
Mnuchin: GSE reform isn’t happening in 2018 – HousingWire
Freddie Mac’s risk-sharing success may help lower G-fees – National Mortgage News
Freddie Mac grows multifamily guarantee portfolio by 30% in one year – HousingWire