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    by Published on 12-11-2012 03:33 PM
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    It has been over four years since Fannie and Freddie were put into conservatorship. Neither company now communicates directly to it's shareholders. Frankly, they act like we do not exist. Now that both companies are again profitable, the government now treats Fannie and Freddie as if we are their personal piggy banks; always on tap to bolster the governments finances. Starting in January, the US Treasury now confiscates all of our profits so we can not build capital on our balance sheet. Unlike with AIG, Citigroup and other bailout participants, there is no plan in place that allows us to payback and reduce the senior preferred shares issued to the US Treasury.
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    Posted on March 2, 2013 in Banking News, Fannie and Freddie, featured, Financial regulation

    Freddie Mac (FMCC), the government sponsored agency that backs mortgage loans for millions of American home buyers reported all time record annual profit of $11 billion for 2012. Freddie Mac has been in the black now for five consecutive quarters as the housing market improves and loan delinquencies decrease.


    Freddie Mac has been operating under government control ever since it was placed under government conservatorship in September 2008 after incurring huge losses related to the housing crash. The government bailout of Freddie Mac resulted in the U.S. Treasury acquiring 80% ownership of Freddie Mac. In addition, Freddie Mac was required to issue senior preferred stock paying a 10% dividend. As of December 31, 2012, the outstanding amount of preferred stock totaled $72.3 billion.

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    Published on 02-11-2013 02:21 PM
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    By Jason Gold US News and World Report

    Fannie Mae and Freddie Mac, the two formerly private mortgage giants, have been in limbo since 2008 when the federal government took them into conservatorship.


    Since then, Congress and President Barack Obama have proposed sweeping reforms of Fannie and Freddie—conservatives demand the government-sponsored enterprises (GSEs) be privatized if not abolished altogether, while progressives favor a more gradual phasing out of the two mortgage giants, which have become critical to the housing market recovery during the past several years.


    There seems to be no hurry among policymakers to decide the fate of Fannie and Freddie, but it looks increasingly as if the GSEs are here to stay. Fresh evidence of this came last month, when the Consumer Financial Protection Bureau (CFPB) endorsed guidelines Fannie and Freddie now use in making new mortgage loans. The details are complicated, but in essence the bureau's much anticipated qualified mortgage rule exempts Fannie and Freddie from the strict guidelines private bankers must now follow to ensure that borrowers can repay their loans.

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    From HousingWire By Christina Mlynski

    • January 28, 2013 • 4:27pm
    Although the housing market has posted a shift in positive momentum, many factors within housing finance will likely remain for quite some time, and reform is not expected any time soon.
    Experts on the U.S. housing finance sector generally concluded that Fannie Mae and Freddie Mac are here to stay, providing a limited window of opportunity in market involvement for private market players, according to a panel discussion at the American Securitization Forum on Monday.
    Government sponsored-enterprise reform will not be a concerning factor Congress this year and as a result, “the center for change is going to be very low,” said Shareholder Robert Bostrom of Greenberg Traurig.

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    Published on 01-16-2013 07:57 AM
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    By Cheyenne Hopkins
    January 16, 2013 12:00 AM EST

    He calls the law tightening oversight of Wall Street among the most “harmful our capital markets have seen.” She has compared bankers to gangsters.

    The will of the new Congress to begin rebuilding the U.S. mortgage finance system rests largely in the hands of Representatives Jeb Hensarling, a Texas Republican, and Maxine Waters, a California Democrat, known as partisan fighters from opposite ends of the ideological spectrum.
    Hensarling, 55, is the new chairman of the House Financial Services Committee while Waters, 74, is the highest-ranking Democrat. In addition to grappling with proposals to tweak and amend the Dodd-Frank regulatory law, they will be seeking common ground on what may be the panel’s biggest issue this year -- the future of Fannie Mae (FNMA) and Freddie Mac.

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    Published on 01-08-2013 11:02 AM
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    Our community member 'europegoodold' wrote the following comment in response to a recent article in the Washington Post - 'It’s time to fix Fannie Mae and Freddie Mac'. I thought it worthy to repost here.

    By europegoodold.

    “This isn't rocket science.“ Tim Geithner about the reform of Fannie and Freddie August 2, 2010.

    Why didn't they find a solution yet? Because they're trapped.

    The Treasury started a war against Fannie's and Freddie's private shareholders without knowing how to end it.

    No one in the mainstream media finds it worth to notice, but F&F are still shareholder owned. The Gov. holds warrants representing 79.99% of the common stock plus senior preferred stock for the amount of the cash infusion. F&F will have paid back $ 55.1 billion until the end of 2012, therefore the net amount of debt is $ 134.3 billion. Sounds like a lot, sounds less big after yesterday's deal with the BoA -and there's more to come. Remember the $ 203-billion-lawsuits against 18 banks still ongoing. F&F hold loss reserves of $ 99.5 billion, relatively much higher than any bank in America. F&F have $ 99.8 billion deferred tax assets that can be activated because they're profitable again.
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