Fannie Mae and Freddie Mac about to take off big time.

[swchandler]

Bob, I think that the question needs to be asked about the government's role in assuming responsibility for liabilities that FnF might encounter in the future. Wasn't that one of the big issues that got under the skin of many, particularly Republicans? Also, isn't it about playing two sides of the fence? Raking in profits when things are good versus transferring losses elsewhere when things turn bad? Should the taxpayers be taking on the risks that are inherent in the business structure of FnF as they exist now?

[thombiz]

Yes, your questions need to be addressed. Congress has been busy trying to address them. There have been more than 5 bills before congress trying to create new laws to run housing finance. That is the role of congress, not my role. I see a once in a lifetime chance to make a killing in the stock market so I've gone all in! Let Congress determine future. I don't really care. I'll be able to pay cash for a very nice home in Maui. I don't need no damn mortgages!

[J64TWB]

Boggs? Your take on this? Bard? You're a real estate guy right?

[thombiz]

Fannie Mae's next quarterly earnings report will be November 7. Since Fannie has repaid all of the draws from the Treasury plus almost all the interest, Nov 7 may be the day they announce they have repaid all the interest also, so it would be a good day for FHFA to announce the end of the conservatorship of FnF. This would put all the future profits back in FnF which would cause the stock to roar.

The Senate and the House are in gridlock when it comes to housing finance reform. Reform is likely a couple years off. That doesn't mean you can't make money now.

[boggsman1]

[thombiz]

I recently saw an interview Bruce Berkowitz of Fairholme Capital did. He is an extraordinarily engaging person. He considers FnF the two most important and necessary corporations in the US. He said so in the interview. The interview was done on Sept 26, 2014, four days prior to Judge Lamberths dismissal of lawsuits in a different court. He discusses Fannie and Freddie starting about 5min 7 seconds into the interview here: http://wealthtrack.com/recent-programs/berkowitz-powerful-financials/ . Again, he was not privy to my discovery at the time of the interview because I hadn't discovered it yet. Fairholme is currently involved in litigation in Judge Sweeney's court. That litigation is in discovery phase. The Government has requested a stay of proceedings until the appeals to the dismissal of suits in Judge Lamberths court are complete.

I like Bruce, but to my knowledge, prior to Oct 21, his legal team had not made the connection between the implementation of the Obama Admin Feb 2012 White Papers and the Sweep Amendment which took all the profits of FnF. To my knowledge, I am the only person in the US to make the connection, except perhaps the Judiciary. I made that connection thru my research and first posted my discovery on Oct 21, 2014. I'm almost positive Bruce has been made aware of my discovery. My belief is that Tim Howard, owner of "timhoward717 ~ Fannie Mae-Straight Talk" a blog where I first posted my findings, has provided him with the information contained in my findings. Fairholme requested to have Tim Howard added to their legal team as a technical specialist, however Judge Sweeney denied the request on the grounds he was a stockholder and could be prejudiced in his evaluation of sensitive correspondence and profit from same. It could contain insider info. Judge Sweeney's ruling is appropriate. We can't give cause for the proceedings to be challenged.

Tim Howard issued a statement thus, "Timothy J Howard has already provided and will continue to provide Fairholme vital information in unraveling the governments fraud. Also remember, Howard was not even employed by Fannie Mae during the time periods being scrutinized in discovery.". Tim posted that on Oct 16 and my discovery happened on Oct 21 and was posted on Tims Blog on Oct 21. I'm just about positive Bruce's team has the info and will be using it in his lawsuit. I am in communication with Tim on a daily basis in a collaborative effort to get to the truth about the conservatorship of FnF.

[thombiz]

So....how profitable are FnF? I read an article about 14 months ago which stated FnF were making more profit than the top three US earnings corporations combined. FnF were making more profit than Walmart, Apple (I think), and Ford Mo Co (I think) combined. They've cleaned up their act, mortgages are more pristine than ever, and most of the toxic mortgages have been cleared from the system. That means big profits for the FnF. Remember, as shareholders we own the company. The people inside work for us, not the other way around.

[thombiz]

There is going to be a D-Day type exposure of all this right after the elections. See: http://timhoward717.com/

[windward1]

thombiz,
How can the toxic mortgages already have been cleared from the system? Mortgages are usually 30 year loans, I had one that was 40. It would seem they have to play out, toxic or not.
Unless all those toxic loans have pretty much all defaulted and were already flushed through the system.
Maybe I answered my own question.
W1

[thombiz]

A friend of mine recently bought a house. That house was a foreclosure. Somebody didn't make the payments, Fannie Mae carried the mortgage, but had to foreclose. Fannie Mae then put the house back on the market at fair market value. My friend purchased the house. It is no longer on Fannies books as a poor performing mortgage, it is a very highly rated mortgage taken out by someone who is honest, reliable, and pays their bills on time. Her mortgage is one of the best on the books. That is how you clear toxic mortgages from the books.