August 2018

Monday August 13 2018

Bill Maloni’s GSE Blog: Are things looking Up? Mostly Fannie and Freddie…and very little Trump

Benzinga: Fannie, Freddie’s Fate Could Rest On Potential Trump Nominee

Politico: Housing finance system roiled by maze of investigations: Here’s a guide

Housing Wire: Fannie Mae CEO in hot water months before he steps down

Friday August 10 2018

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Judge Sweeney granted the Jones Day client’s request to amend the protective order in Fairholme v. U.S.”

A new lawsuit has been filed, Cyrus vs. U.S.

Peter Chapman writes, “CRS Master Fund, L.P., Cyrus Opportunities Master Fund II, Ltd., Cyrus Select Opportunities Master Fund, Ltd., and Crescent 1, L.P., owning more than $230 million of junior preferred stock at the time the Net Worth Sweep was imposed, filed a lawsuit in the U.S. Court of Claims.  “At the time of purchase, Cyrus had no reasonable ground to expect that, while the Companies were in conservatorship, the United States instead would expropriate its investment and force shareholders into years of litigation to recoup their investments,” Cyrus tells Judge Sweeney in its complaint modeled on Owl Creek’s.  Cyrus is represented by a team of lawyers led by Bruce S. Bennett at Jones Day.” Click here to view the court filing.

Guru Focus: The Fate of Fannie and Freddie

Politico: Romantic relationship triggers second rebuke for Fannie Mae CEO

Thursday August 9 2018

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Owl Creek, Appaloosa, Akanthos, CSS, and Mason Capital want Judge Sweeney to enter a Third Amended Protective Order that will include them in the definition of “Parties” to ensure that Protected Information is treated consistently among all of related cases through the filing of Mason Capital’s complaint.  The government does not object to this request. You’ll recall — see Doc. 400 filed Feb. 27, 2018 — that the Jones Day lawyers representing these shareholders have access to all sealed discovery documents.”

Seeking Alpha: Differences Between FHFA’s Rule And Moelis GSE Blueprint Are Minor

American Banker: House panel plans FHFA oversight hearing, invites Watt to testify

Wednesday August 8 2018

A new lawsuit has been filed, Highfields vs. U.S.

Peter Chapman writes, “Three Highfields Capital partnerships, which own both junior preferred and common shares in both GSEs, filed a lawsuit in the U.S. Court of Federal Claims yesterday. At pages 29-31, Highfields raises a “breach of implied-in-fact contract between the United States and the enterprises” that I don’t believe we’ve seen previously.  Highlands is represented by Mark T. Stancil at Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP in Washington, D.C., and now we know why Ms. Chase Carpino ordered a copy of the transcript in Bhatti v. FHFA before Judge Schiltz.” Click here to view the complaint.

National Mortgage News: What FHFA scandals mean for agency’s future, GSE reform

American Banker: Fannie, Freddie could need $78B in crisis: FHFA

Housing Wire: Fannie, Freddie stress test results improve significantly from last year

The M Report: Testing the GSEs’ Performance in Adverse Conditions

Tuesday August 7 2018

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

Peter Chapman writes, “The Collins Plaintiffs have asked the Fifth Circuit for a larger number of judges to review the three-judge panel’s decision finding that FHFA is unconstitutionally structured and upholding the Net Worth Sweep.”

Housing Wire: FHFA caves to industry requests, extends comment period for proposed GSE capital rule

Monday August 6 2018

Bill Maloni’s GSE Blog: They Lied about Fannie and Freddie and the two prevailed despite the propaganda–could it be the excellent business model?

American Banker: The crisis isn’t over

Housing Wire: FHFA watchdog faces investigation for misconduct

Friday August 3 2018

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Fairholme filed a motion to amend its complaint pending in the U.S. Court of Federal Claims today. Fairholme wants to amend its illegal exaction claims to include the theory that the imposition of the Net Worth Sweep and quarterly Net Worth Sweep dividend payments were unauthorized because at all relevant times FHFA has, as the Fifth Circuit recently held, been operating in violation of constitutional separation of powers principles.  Fairholme notes that the Wazee Plaintiffs’ complaint raises this claim.  Fairholme tells Judge Sweeney the government opposes this request.”

DS News: Fannie Mae Earnings Increase in Q2

Housing Wire: Fannie Mae reports income of $4.5B in Q2

The M Report: Solid Fundamentals Drive Fannie Mae’s Q2 Growth

Mortgage News Daily: Fannie and Freddie Extend Strong Earning Streak

Politico: Investigating the investigator: Fannie-Freddie watchdog under scrutiny

Thursday August 2 2018

A class action lawsuit has been filed, Wazee vs. U.S. Click here to view the filing.

Peter Chapman writes, “Wazee Street Opportunities Fund IV LP, which owns about 1.6 million shares of common stock in Fannie Mae, filed a class action lawsuit in the U.S. Court of Federal Claims yesterday. The Wazee Plaintiffs are represented by Hamish P.M. Hume at Boies Schiller Flexner LLP, who also represents the Class Plaintiffs in the litigation pending before Judge Lamberth.”

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “The government filed its omnibus motion to dismiss GSE shareholder cases pending before Judge Sweeney. The government says the lawsuits should be dismissed because Judge Sweeney lacks jurisdiction to entertain them for a variety of reasons we’ve mostly heard before.  At pages 46-47 (PDF pages 69-70) the government presses it’s distinction between GSE shareholders acquiring their interests before and after the Net Worth Sweep was imposed.  At page 58 (PDF page 81) the government explains that shareholders’ lawsuits pending before Judge Lamberth demonstrate that the government didn’t take or appropriate shareholders’ contractual rights.  At page 80 (PDF page 103) the government says Washington Federal had a 30-day window in 2008 to challenge FHFA’s appointment as the GSEs’ conservator that closed long ago.”

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

Peter Chapman writes, “The Bhatti Plaintiffs filed their statement of issues in the Eighth Circuit yesterday.”

New filings in Saxton vs. FHFA

Peter Chapman writes, “The Saxton Plaintiffs notified the Eighth Circuit about the recent Collins decision and urges the Court to follow Judge Willet’s dissent.  FHFA thinks that’s a very bad idea.” View the plaintiffs’ notification here, and FHFA’s response here.

Fannie Mae: Fannie Mae Reports Net Income of $4.5 Billion and Comprehensive Income of $4.5 Billion for Second Quarter 2018

Markets Insider: Fannie Mae Reports Net Income of $4.5 Billion and Comprehensive Income of $4.5 Billion for Second Quarter 2018

Bloomberg: Berkowitz’s Fairholme Fund Reduces Fannie Mae-Freddie Mac Stakes

Guru Focus: Bruce Berkowitz Comments on Fannie Mae and Freddie Mac

Wednesday August 1 2018

Bill Maloni’s GSE Blog: Some GSE thoughts and a few Presidential ones….

Reuters: Freddie Mac’s second-quarter income rises vs. year ago

National Mortgage News: Freddie Mac posts ‘boring’ second quarter, and that’s OK, CEO says

DS News: Freddie Mac Announces Q2 Results

Scotsman Guide: Freddie posts solid Q2 earnings

American Banker: FHFA extends comment period on GSE capital proposal