Fannie Mae (QB) (FNMAH) News

Pulte will be hiring Investment Bankers within 3 to 6 months for a 2026 offering

FOFreddie - Exactly - if he has not already. As Calabria said - just dust off the study.

As they said - the MBS market was the second most liquid after Treasuries. A utility like stock in these companies would - to me anyway - come as close to being a T-Bill or MBS security - remembering what happened in 2008 - and we are talking stocks and not bonds. But I can't foresee even a series of very large offerings not be attractive. But I am not Warren Buffet.

Nats

HUDification - that's a new word we need to add to our GSE vocab.

I was surprised how positive it was. But the highlight for me was the term "HUDification". This is as big a turn around in support as it gets. It means that some of our our biggest and loudest opposition has gone from no-release to we must release. They drove home the point that the GSEs are stuck in a bureaucracy - where they have not let their business evolve with the times and become more efficient. And, as time goes on they will be less and less so - and its costing homeowners and the mortgage business money. When asked at the end about just continuing the conservatorship into the far future - they said it must be ended. Wow. But they are correct. I think all this talk about release increasing mortgage rates is industry BS - and I think you can now expect them to start arguing that we must release them to drive mortgage rates and admin costs down. This is a big shift.
The moderator was great - the topic of the video was administrative release. When congressional involvement was raised she basically said - hey - are your nuts? That ain't happening.

I would recommend watching.

Nats

"I don’t see any way they will delay this any longer"

Don't we all wish you are right but history tells us some BS will pop up to delay, delay, delay.

Urban institute
Cato Institute
Etc

Please

Just another bs forum for paid for ideas by people with money who think they can still control what’s coming

Just like
Whalen
Gas bag
H Ackerman
Circus folk carney
And others

This is now a
DJT fix and no one can stop it

Go admin go

Go
FnF

It’s coming by Memorial Day

I don’t see any way they will delay this any longer

Calabria was d@##.

What if he Hopeful Investor that want eat bird nest soup for many year?

If a secondary offering is not feasible now - why did Calabria higher JPM and Morgan Stanley to work on them 4 years ago with the need for a much larger offering? The Urban Institute webinar was good but it really exposed Layton as a dogmatic naysayer and Brinkman as a me too guy. The guy that made sense was Frater. The index funds and institutions will eat up a series of secondary offerings and will end up owning 60 to 80% of the float forever. The GSEs cash flow is one of the highest quality dividend streams in finance backed by homes across America. INMHO Opinion - Brinkman is wrong and Pulte will be hiring Investment Bankers within 3 to 6 months for a 2026 offering

No steps, just immediately relist and release with SPS written down and warrants cancelled. Taxpayers can keep the extra 110 billion. Then eliminate or roll the FHFA into HUD.

What is your take how to release them (steps)?

Why? What is the negative news?

It will tank again tomorrow!

It is too risky to release FnF without fixing all the waste, fraud, theft that has been going on for decades.
Otherwise they would be back under conservatorship very soon and this time the enemies are going to say they told so.

Big time vibe shift.

The responses I always get are we have received your input blah blah blah, I will say that I am also in crypto and Coinbase does an amazing way of letting the customers email their senators and congress
With that I always get a long letter reply from my representatives

I think he’s on it Guido.

President Trump set him out to end reg cship

That’s the mission period

I feel u Guido. I understand the cynicism and frustration. 

Why would he put in all this effort to cleanup this mess and then reward vulture investors who have been greedily socking away 30 cent  shares for years hoping for huge profits at taxpayer expense. He is not that(FNMA) kind of guy. If any shareholders get any compensation you needed to be a owner before 2008 which eliminates almost everyone reading this .

You’re aware there’s a new stress test on the menu?

Wonder why…

Because, I realize he has good intentions of making sure everything is on the up and up, but why is he interfering with day to day operations? If the 2 GSEs are functioning properly why is he taking an interest in layoffs? Why not focus on the FHFA bloat and release the GSEs and let the CEO worry about cutting unnecessary staff. Bill's going to need a job or two after DOGE deletes da FHFA

Ah but yes Congress can help remedy this. All Pulte needs to do I\is work with Congress to void the SPSP Warrants, since they can and will to help right the Conservatorship.

After all, it has been decided that Shareholders have been mistreated by the Government and this has caused financial hardships on Investors. Has it not?

Per GROK..

Yes, Congress has the authority to change or nullify the Senior Preferred Stock Purchase (SPSP) warrants for Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac, as these warrants stem from agreements enacted under federal law and oversight. The SPSP warrants were issued as part of the Senior Preferred Stock Purchase Agreements (SPSPAs) in 2008, authorized under the Housing and Economic Recovery Act (HERA) of 2008 (Public Law 110-289). HERA granted the Treasury temporary emergency authority to provide financial support to the GSEs, including the ability to purchase securities and establish terms like the warrants.

Since Congress has legislative power over federal statutes and appropriations, it could pass new legislation to amend HERA, terminate the warrants, or alter the terms of the SPSPAs. For example, Congress could:
- Directly nullify the warrants by enacting a law that voids them or mandates their cancellation.
- Modify the Treasury’s authority under HERA retroactively, affecting the legal basis of the warrants.
- Require the Treasury to divest or relinquish its warrant rights as part of broader GSE reform.

However, any such action would face practical and political hurdles:
- **Legal Challenges**: Nullifying the warrants could be contested by stakeholders (e.g., Treasury, investors) as a breach of contract or a "taking" under the Fifth Amendment, potentially requiring compensation.
- **Market Impact**: The warrants represent a significant portion of the GSEs’ potential ownership (79.9% of common stock). Canceling them could destabilize the GSEs’ capital structure, affect shareholder value, and disrupt housing finance markets.
- **Political Will**: GSE reform has been a contentious issue for years, with competing interests among lawmakers, the Treasury, and private investors. Consensus on altering the warrants would be difficult.

Historically, Congress has debated GSE reform extensively without decisive action on the warrants. For instance, bills like the 2018 Corker-Warner proposal and later discussions under the Trump and Biden administrations have explored recapitalizing and releasing the GSEs from conservatorship, but none have directly nullified the warrants. The Treasury could also voluntarily cancel or renegotiate the warrants under existing authority, but this would likely require Congressional pressure or approval, especially given the fiscal implications.

In short, Congress *can* change or nullify the SPSP warrants through legislation, but doing so would depend on navigating significant legal, economic, and political complexities. As of now, the warrants remain intact, set to expire on September 7, 2028, unless acted upon sooner.

Fannie Mae - All The Way
I'm waiting for THE BIG ONE
Somethin' comin'
I Don't Know
What it Is, but it is
Gonna Be Huge

It is now clear to me that a secondary offering will never work or happen after watching this Urban Institute video. It has to be all retained earnings. Furthermore a PSPA is required post conservatorship to lock in all the reforms that have taken place. Congress will have nothing to do with the release. They are not required. And finally post conservatorship there will be no competitors entering. Great video.

Not entirely sure on the reporting. But the sweeps began in 2012.

https://ruleoflawguy.substack.com/p/gse-vibe-shift-continues-consider?r=huaab&utm_medium=email

LORD, SEND US NO MORE SAVIORS

You sent us Mnuchin, who acknowledged his predecessors' swindle and then proceeded to loot another $45 billion of our equity.

You sent us Mark Calabria, the author of HERA to free us, but he hid stress test results and wrote capital requirements that assure we'll remain in perpetual slavery.

You now gave us Pulte, a home builder and business man to remedy what's wrong with a rogue government agency. Instead, he is spending his time fixing what ain't broke.

If you stop sending us Saviors, we'll learn to accept that Evil will Prevail.

Frater thinks the GSEs will become dividend-paying utility-type equities that could grow with the mortgage market.
MBS investors are very important, and we must maintain liquidity in this market.
Further, addressing the senior preferred, the liquidation preference, and the…— Alec Mazo (@Alec_Mazo) March 19, 2025

What Reporting Changed Happened In 2010?

No profit Reporting due to the NWS?



Ron

I just watched this entire one hour video from today. I have to admit the Urban Institute did a really good job. There was no bias or propaganda. Great information from three former CEOs. My main take home points were that up-listing and release really will take another minimum 1 year. There are a lot of steps required more than what most folks here on this board think. I highly recommend everyone watch this one hour video. It is very informative. Hugh Frater is very smart. He knows everything. Even Don Layton was quite positive and presented some great talking points.

They were delisted while in c-ship — probably they can.

When do you suppose He will go before the Oversight Committee for a progress report?

When will He reveal His plan, in regard to c-ship, for/of F&F?

Really good article.

Just FYI, delisting occurred in 2010 after they had been in conservatorship since '08.

Can F&F in C-ship be Listed on a Major Exchange?

I contend that F&F can’t up list to a major stock exchange while in conservatorship.

Therefore the conservatorship must end first before the up list.



Ron

https://www.washingtonpost.com/business/2025/03/18/fannie-mae-freddie-mac-fhfa-overhaul-mortgage/

Acquisition where they left pfd out. Same could have happened to first lien debt had the covenant structure allowed for the acquiring entity to assume the liability. Thereafter anything can happen. Please do explain to me how your above can apply to our situation.

Blame & Fire the CEO's, as well managements of Fannie & Freddie for ignoring the employee absentee situations.
I bet the 40 people tunring up in the office, showed for 4 -5 hours and then disappeared for rest of the day !!!

Yeah, either do corrupt money-grubbing politicians!

Don't kid yourself, I rather have billionaires who don't need my money running things.....

Just look around, 50 people showing up to a 3,000-person facility.

Fannie, Freddie board shakeups bring conservatorship exit closer to reality

Bill Pulte now heads both the Federal Housing Finance Agency and the Fannie and Freddie boards
Marty Green, a principal with the law firm Polunsky Beitel Green LLP, thinks that the board shakeups will accelerate Fannie and Freddie’s departure from FHFA conservatorship.
Luke Baynes - March 18, 2025

https://www.scotsmanguide.com/news/fannie-mae-and-freddie-mac-board-shakeups/

Mortgage, Regulations and Compliance
The bombshell report late Monday that Bill Pulte, the new head of the Federal Housing Finance Agency (FHFA), had replaced 14 board members at Fannie Mae and Freddie Mac and installed himself as chairman of both boards came as a shock to many in the mortgage and housing industries. The FHFA oversees those government-sponsored mortgage companies, so Pulte’s new roles give him even more control over the direction of Fannie and Freddie.

What does Pulte’s power play mean for the future of Fannie and Freddie?

Marty Green, a principal with the law firm Polunsky Beitel Green LLP, thinks that the board shakeups will accelerate Fannie and Freddie’s departure from FHFA conservatorship.

“I think it increases the odds fairly significantly that we see Fannie and Freddie exit conservatorship at some point during the next four years,” Green said. He added that he expects the process to start before the 2026 midterm elections.

In addition to Pulte, who is in his late 30s, many of the other newcomers to the Fannie and Freddie boards are relatively young, Green said. One incoming Fannie Mae board member, Christopher Stanley, is an acolyte of Elon Musk who has worked at both X and SpaceX, according to his LinkedIn profile. More recently, he was tapped by Musk for an unspecified role in the Department of Government Efficiency (DOGE), according to The New York Times.

Green said that Stanley is an “unusual person to be appointed” to the Fannie Mae board of directors due to his youth and a lack of experience in the mortgage industry. He noted that Stanley’s appointment may extend DOGE’s influence.

“He may bring a great, fresh perspective. There’s certainly cybersecurity issues when you look at the mortgage data and other things that Fannie and Freddie have that are still going to be important,” Green said. “But the fact that he has such a close connection with Elon Musk and that he works at SpaceX as well, and that he’s on the DOGE team, makes that something that’s going to give them a lot more influence and insight as a result of that appointment.”

The 14 members of the boards who were ousted by Pulte were older and had more experience in the housing and mortgage industries. One member, Simon Johnson, a British-American economist, won a Nobel Prize in economics.

Green acknowledges that the optics of Pulte heading both the FHFA and the Fannie and Freddie boards “probably aren’t perfect” from a corporate governance and oversight standpoint. But he believes that Pulte’s background as a former board member of homebuilding company PulteGroup Inc. will translate well to his new role.

“We think that overall he will be a friend to the housing industry just because of his history with Pulte Homes,” Green

I approve of the thought but I think we months months at the best. I WANT you to be right though, not me.

I have already written this post, and this other one as a follow-up, regarding this same stupid argument (that the juniors can be wiped at all, let alone without the commons also going to zero). It's just schadenfreude-fueled wishful thinking.

I can give you an example of Preferred getting screwed relative to Common from my personal experience, if you care to hear it. Cedar Realty Trust(CDR) which got bought by Wheeler Realty (WHLR). They paid $29 per share to retire the CDR common (my cost basis was $5.58 - so great for me ). After liquidating the common, there was not enough residual value to liquidate the preferred. They essentially just skipped over them to pay common off. So the Preferred did not get redeemed, and instead just went under control of the acquiring company. Preferred holders were livid at the premium conversion common was getting in what was essentially a liquidation, and that they were getting nothing - dividends not even being paid. After acquisition, Wheeler struggled to pay dividends to the old CDR preferred, which of course affected the share price. Preferred holders were stuck or sold at a loss, whereas most common holders realized significant gains. I haven't been following for a couple years, but I think the plan was to convert the CDR preferred into Wheeler common, causing massive dilution and paled compared to the CDR common liquidation price.

Now before you get too excited, I'm not saying this is relevant to the GSEs or that common will get paid off and the Preferred stuck with some GSE newco. I'm just saying there are examples of Preferred getting hosed relative to common, and lawsuits and attempted injunctions did not help.

Friday, My thinking also.

The Plan has been in the works for along time now.
Just needed the right people in the right place.



Ron

HOW? RED CLOUD - UGG
To me, it seems that ALL GOVERNMENTAL
Workers Incompetent few exception including federal workers, analysts, managers, secretaries, etc. Including workers, management and most staff in State governments, County people, City workers.
Incompetence Way of Life for Them

Friday after market close...

Now the question is...for whom!

Billionaires don't play well with others...jus sayin".

I’m Expecting a EO that Pulte Enforces.

• EO after hours to release F&F from C-ship by President.

• up-list on the following trading day.

Yes there is a game plan.

That is the best way to remove a Band-aid?

FAST!



Ron

This story feeds a longer larger narrative -

Those Congressmen and Senators who are so opposed to Re-List and Release of Fannie and Freddie are:

Completely Incompetent - no oversight was provided for the Conservatorship which degenerated into yet another bloated Federal Government Bureaucracy,

Completely Wrong - such a level of waste would never be tolerated or permitted in the private sector.

Where were Those Opposed while this mismanagement was happening? Fundraising....

The more I see Bill Pulte operate the more impressed I am.

https://www.nytimes.com/2025/03/18/business/trump-doge-federal-housing-agency-cuts.html

I believe it is to insure success.

It's hard for me to get a read on how Treasury putting its FnF stake into a SWF would affect current shareholders, either common or preferred. There are many ways to structure it.

I can say I have no idea either. So we finally agree on something.

I don't know that keeping the actual exercised shares in the SWF makes sense, just to provide that implicit guarantee. If the stress tests show just how incredibly strong the GSEs are, we don't need a mechanism for a government backstop.

I think they'd be better off to use the 79.9% warrants (or substantially less), to generate $100-200B in cash to put into Gold or ETFs or Index funds so that they do not have controlling interest in any particular company.