April 2018

Monday April 30th 2018
New filings in the Jacobs and Hindes case.
Peter Chapman writes, “Treasury and FHFA filed their briefs in the Third Circuit last week.”
New filing in the Rafter case, click here to view.
Peter Chapman writes, “The Rafter Plaintiffs ask Judge Sweeney to join Fannie Mae as a nominal defendant to their lawsuit in the U.S. Court of Federal Claims against the government. The Rafter Plaintiffs tell Judge Sweeney that joinder is necessary at this time for the court to properly consider the Rafter Plaintiffs’ derivative shareholder claims. The government has advised the Rafter Plaintiffs it opposes the request, saying it is premature, and Fannie Mae’s indicated it opposes the request.”
Mnuchin on the future of Fannie Mae and Freddie Mac – Fox Business Video
Treasury unveils ‘fix’ for restoring Fannie Mae, Freddie Mac – Fox Business
Steven Mnuchin: Legislation on Fannie, Freddie won’t happen this year – Washington Examiner
GSE reform unlikely to happen this year: Mnuchin – American Banker
Mnuchin wants GSE reform in 2019. There’s a problem with that – American Banker
Analyst Now Sees Less Than 10% Chance Congress Tackles Fannie, Freddie Reform This Year – benzinga
Fannie Mae Announces Scheduled Release of First Quarter 2018 Financial Results – markets.businessinsider.com
“Fannie Mae today announced plans to report its first quarter 2018 financial results on Thursday morning, May 3, 2018, before the opening of U.S. financial markets.”
Friday April 27th 2018
New Mortgage Bonds May Prove a Double-Edged Sword for Investors – Bloomberg
What We’re Hearing: GSE Reform? How About 2021? / The Return of Ed DeMarco? / No Political ‘Protection’ for Fannie and Freddie… – Inside Mortgage Finance
Thursday April 26th 2018
Redacted Complaint Analysis Reveals Clues About GSE Discovery Material – Seeking Alpha by Glen Bradford
US housing: how Fannie Mae and Freddie Mac became rental powerhouses – Financial Times
Freddie Mac takes aim at FHA with widespread expansion of 3% down mortgages – HousingWire
Wednesday April 25th 2018
New filing in the Owl Creek case, click here to view.
Peter Chapman writes, “To keep her docket tidy, Judge Sweeney entered an order this afternoon denying the government’s request for the 66-day extension as moot.”
Sen. Crapo Says GSE Reform Still Possible in This Congress (You Heard That Right) – Inside Mortgage Finance
Blog: GSE reform remains elusive – Scotsman Guide
Tuesday April 24th 2018
New filings in the Owl Creek case.
Peter Chapman writes, “The government’s responses to Owl Creek, Appaloosa, Akanthos, CSS and Mason Capital’s complaints were technically due today. Without objection from the five shareholders, the government obtained a 66-day extension to file its responses to the five latest shareholder lawsuits. A copy of the government’s request is (linked above), as well as Judge Sweeney’s order placing the five lawsuits on the same timetable as the other cases pending before her.”
“Mark Warner addresses Fannie/Freddie at ABA meeting…” via @josephlawler – Twitter
Stars May be Aligned for Strong Profits at Fannie and Freddie – Inside Mortgage Finance
The Fed is not in the mood for ferocity, says former vice chairman Blinder – MarketWatch
Monday April 23rd 2018
New filing in the Owl Creek case, click here to view.
Peter Chapman writes, “Owl Creek, Appaloosa, Akanthos, CSS and Mason Capital ask Judge Sweeney to place their lawsuits on the same timetable as the other cases pending before the U.S. Court of Federal Claims. The government has indicated that it supports the request, and the the GSE shareholders have agreed not to amend their complaints.”
Fannie Mae Announces Updates to its Mortgage-Backed Securities (MBS) Prospectus to Support Connecticut Avenue Securities (CAS) REMIC – PR Newswire
Sam Khater named vice president and chief economist at Freddie Mac – HousingWire
Friday April 20th 2018
New filing in the Rafter case, click here to view.
Peter Chapman writes, “The Rafter Plaintiffs filed a redacted version of their second amended complaint this afternoon in the U.S. Court of Federal Claims. The Rafter Plaintiffs discuss, at pp. 25-36, the government abandoning its commitment to restore the GSEs safety and solvency and its 2011 proposal to wind the GSEs down; Fannie and Freddie’s record profit projections that followed that change; and the imposition of the Net Worth Sweep in 2012; and, at pp. 44-47, the Fourth Amendment to the PSPAs. The Rafter Plaintiffs include a new claim for relief, at pp. 57-58, asking Judge Sweeney to reform the Third Amendment and undo the damage done to GSE shareholders.”
Housing Finance Reform: A Better Way (Mutalization of Risk Among Investors, Just Not The Federal Government) – confoundedinterest.net
House Examines GSE Conservatorship, but Reform Remains Stalled – The Collingwood Group: Voice of Housing
Thursday April 19th 2018
FHFA Under Pressure to Act More Like a Bank Regulator with Fannie & Freddie – Inside Mortgage Finance
“Fed Vice Chairman Quarles says a government backstop is “probably not” essential to keep the 30-year fixed rate mortgage” via @Zachary – Twitter
Fed’s Quarles: 30-year fixed-rate mortgage ‘probably’ doesn’t need government backstop – MarketWatch
U.S. Fed buys $2.3 bln of mortgage bonds, sells $400 mln – nasdaq.com
Wednesday April 18th 2018
MBA Casts the Net Far and Wide for New Chief. Jeb Hensarling? – Inside Mortgage Finance
Tuesday April 17th 2018
Fannie and Freddie survive another Congress – Washington Examiner
Duck Folks, they are throwing marshmallows at us! – Bill Maloni’s GSE Blog
Fannie Mae and Freddie Mac Continue to Dominate Apartment Lending – National Real Estate Investor
Monday April 16th 2018
New filing in the Bhatti case, click here to view.
Peter Chapman writes, “The Clerk released a transcript of the Dec. 21 hearing before Judge Schiltz to the public late last week. The court docket shows that copies of the transcript were requested by (i) FHFA’s lawyers at Arnold & Porter; (ii) counsel to Mr. Bhatti; (iii) James Wasicek at Covington & Burling; (iv) Antonio Grassia in Manhattan; (v) Christine ChaseCarpino at Robbins, Russell, Englert, et al.; and (vi) Shary Kapoor at Silver Point Capital while it was embargoed for 120 days.”
Lawmakers examine FHFA effectiveness – Financial Regulation News
Pershing Square Doubles Down on its GSE Bets – Inside Mortgage Finance
Friday April 13th 2018
New note in the Saxton case.
Peter Chapman writes, “The Eighth Circuit has scheduled oral argument for Tues., May 15, 2018, in St. Paul, Minn., before Judges Duane Benton, Jane Kelly and David R. Stras.”
New filing in the Fannie/Freddie Consolidated Class Action case, click here to view.
Peter Chapman writes, “Fairhome and Arrowood tell Judge Lamberth that FHFA is mistaken, and ask him for permission to file a short surreply directing the Court’s attention to the six specific allegations in their amended complaints that, consistent with the D.C. Circuit’s decision in Perry, say shareholders’ contract claims are ripe.”
2nd filing in the Fannie/Freddie Consolidated Class Action case, click here to view.
Peter Chapman writes, “FHFA opposes Fairholme and Arrowood’s request to file a surreply.”
OIG says FHFA Practices Need Improvement, Lots of It. – Mortgage News Daily
Thursday April 12th 2018
House Hearing Questions FHFA’s Oversight of Fannie, Freddie. IMAGIN? – Inside Mortgage Finance
Congress Must Protect Taxpayers From The Menace Of Fannie And Freddie – The Daily Caller
Regulators are fueling another housing boom – American Banker
Oral Argument Bhatti v. FHFA – Dropbox
Wednesday April 11th 2018
A new lawsuit has been filed, Mason Capital v. United States. Click here to view.
Peter Chapman writes, “Mason Capital L.P. and Mason Capital Master Fund L.P. filed a lawsuit against the government in the U.S. Court of Federal Claims today. Mason Capital is represented by the same team of Jones Day lawyers representing Owl Creek, Appaloosa, Akanthos and CSS. Mason Capital owned more than $1.1 billion of junior preferred stock in the GSEs 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.”
New filing in the Fannie Mae/Freddie Mac Senior Preferred Stock Purchase Agreement Class Action Litigations, click here to view.
Peter Chapman writes, ‘FHFA tells Judge Lamberth to ignore the Class Plaintiffs’ proposed surreply because they’re not entitled to a “do over.”‘
The Final Nail in the GSE Reform Coffin: Creation of the $3B Capital Buffer? – Inside Mortgage Finance
The wasteful spending at Fannie Mae and Freddie Mac must end – The Hill
Where are the GSEs 10 Years After the Financial Crisis? – American Action Forum
Fannie Mae’s Jeffery Hayward Talks Affordable Housing, Millennials and Zoning – Commercial Observer
Tuesday April 10th 2018
GSE Receivership Avoided – Seeking Alpha by Glen Bradford
Home buyers taking on more debt – Seeking Alpha
Analysts expect to give high credit rating to GSE successors – National Mortgage News
Congressional Reforms to Federal Mortgage Providers Would Affect Interest Rates, Loans – fcnp.com
Monday April 9th 2018
Minneapolis Fed’s TBTF plan has some GSE-sized holes – American Banker
Government Policy Mistakes Led to the Great Recession – economics21.org
The article contains a brief GSE mention.
Bankers push for less regulation – Long Island Business News
Friday April 6th 2018
Hearing entitled “Oversight of the Federal Housing Finance Agency” – house.gov
Occurs Thursday, April 12, 2018 10:00 AM
“another important player moving over to Freddie…” via @ARiquier – Twitter
Thursday April 5th 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 Class Plaintiffs delivered a proposed surreply to Judge Lamberth this afternoon to clarify that, although FHFA wants to argue that shareholders’ claims aren’t ripe for consideration, they’re ripe because the Net Worth Sweep eviscerated shareholders’ economic interests in their securities and because the D.C. Circuit said they are ripe in the Perry decision.”
What Fueled the Financial Crisis? – Urban Institute
An Analysis of the Performance of Purchase and Refinance Loans
How Freddie Mac Rejuvenates and Diversifies ‘Mom-and-Pop’ Building Owners – nextcity.org
GSE Market Thuds to a Two-Year Low in 1Q18 – Inside Mortgage Finance
Wednesday April 4th 2018
Trouble Brewing for Fannie and Freddie in High DTI Market? – Inside Mortgage Finance
Christopher Herbert Elected to Freddie Mac Board of Directors – The MReport
Tuesday April 3rd 2018
Government Controlled Companies Got A $4 Billion Bailout Last Week – And Nobody Noticed – The Political Insider
“Per @MarkCalabria this morning:
1) too many barriers currently for legislative reform- maybe over next Congress…” via @JohnDee78791547 – Twitter
The Vampire’s Kiss: Seizure of Fannie Mae and Freddie Mac Hurt Small Investors Too Such As Small Banks (Puerto Rico Analogy) – confoundedinterest.net
Ackerman’s Take: Fannie-Freddie Deal Unlikely This Year – The Wall Street Journal
Subscription required for access.
The Policy Makers – DS News
Investors Remain Bullish on GSEs’ Credit Risk Transfer Program – The MReport
Monday April 2nd 2018
Gary Hindes received a letter from a Kansas bank about their stock holdings in the GSEs.
Mr. Hindes writes, ““In response to my article last week in the American Banker  (https://www.americanbanker.com/opinion/this-isnt-a-bailout-this-is-return-of-stolen-funds), I received a letter from the president of a small-town bank in rural Kansas.  I have been given permission to share it.” (Link to Letter).
Mr. Hindes continues, ‘Most people are unaware of the fact that after Treasury Secretary Henry Paulson showed up at Fannie Mae headquarters on September 6, 2008 with his bazooka, 15 community banks were seized by the FDIC after being forced to write off their Fannie and Freddie preferred stock holdings – their shareholders were, of course, wiped out.  (Fortunately, the dozens of other community banks which also held Fannie and Freddie securities had enough capital to withstand the write-down – although that meant billions of dollars were no longer available to lend in their local communities.)  Ironically, after closing the 15 banks, the FDIC, as Receiver, aggregated their Fannie and Freddie holdings and sold them, at deep discounts, to the very hedge funds which Treasury, DOJ, and the GSE-haters have ever since demonized as “speculators”.’
Apathy Setting in on GSE Legislation. Industry Focus Shifts to Reg Reform – Inside Mortgage Finance
Fannie Mae Completes 2018’s First Credit Insurance Risk Transfer – DS News
Trump to nominate ex-banker Muzinich to top Treasury role – Politico
“As deputy secretary, (Muzinich is) expected to focus on implementation of the tax plan, housing finance reform, international affairs and other key Treasury agenda items.”
Five Star Government Forum Unites Banking and Government Leaders – DS News