navycmdr
2 hours ago
Top housing regulator in upheaval as executives, employees put on leave
Bill Pulte earlier this week fired 14 members of Fannie and Freddie’s boards
of directors and appointed himself chair of both.They come as the administration weighs privatizing the giant firms,
a decision that could bring a windfall to private investors but that
is opposed by many Democrats and others who fear that it could
roil the housing finance market.
By Katy O'Donnell - 03/20/2025
The Trump administration on Thursday fired the CEO of mortgage giant
Freddie Mac and placed two senior officials at the nation’s top housing
regulator on administrative leave.
Newly installed Federal Housing Finance Agency Director Bill Pulte
axed Freddie CEO Diana Reid, according to two people with
knowledge of the dismissal who were granted anonymity to
discuss internal moves.
Pulte placed FHFA Chief Operating Officer Gina Cross and
Human Resources Director Monica Matthews on leave earlier
in the day, after putting dozens of agency employees
on leave this week.
The sudden developments add to the upheaval at the independent
agency, which regulates Freddie and sister firm Fannie Mae,
the government-controlled companies that stand behind
about half of the U.S. residential mortgage market.
They come as the administration weighs privatizing the giant firms,
a decision that could bring a windfall to private investors but that
is opposed by many Democrats and others who fear that it could
roil the housing finance market.
Pulte, a former private equity executive who hails from one of the
most prominent families in American home building, has quickly
asserted his grip on the agency since being sworn in last Friday,
hollowing out several offices.
Earlier this week, he fired 14 members of Fannie and Freddie’s
boards of directors and appointed himself chairman of each —
despite a statute stipulating that the director may not “hold any
office, position, or employment in any regulated entity or
entity-affiliated party.”
Employees in the Office of Consumer Protection, the Office of
Statistics and Research and the Office of Equal Opportunity
and Fairness were placed on leave over the last few days.
Staffers in the Office of Minority and Women Inclusion had
already been placed on leave weeks ago, the people said.
The director of FHFA’s Office of Congressional Affairs and
Communications, Antonio White, was fired on Monday.
Spokespeople for the FHFA and Freddie did not immediately
respond to a request for comment.
Daniel Lippman contributed to this report.
navycmdr
2 hours ago
Fannie Mae: Risk-Reward Is Balanced
-- Fannie Mae's stock has surged nearly 5X in six months,
driven by Bill Ackman's endorsement of its large asymmetric upside potential.
Mar. 21, 2025 - Joseph Parrish -
Summary
-- Fannie Mae's stock has surged nearly 5X in six months, driven by Bill Ackman's endorsement of its large asymmetric upside potential.
--- Despite profitability and core revenue growth, FNMA's conservatorship severely limits earnings due to hi pref divies owed to the govt.
--- Ackman's activism aims to end conservatorship, potentially boosting FNMA's market cap to $100B, but this relies heavily on government cooperation.
--- Given the balanced risk-reward profile and potential for a 2X return, I rate FNMA a Hold, acknowledging both its upside and significant
amelia43
2 hours ago
Eternal, I know what you are saying about human nature. Maybe in my 40’s I’d get tempted to want more but in my 50’s I have different perspectives and priorities in life.
I originally bought Fannie when my kids were in grade school and thought their college tuition would be funded by this investment. Well college came and went. Older kid took a year off but is going back to grad school this fall. Younger kid will start grad school in fall of 26. At $10 I can fund their grad schools, kitchen, and some day trading money. That’s good enough for me.
I don’t own massive shares like Mr. Michael or Navy, for them extra $10 is life changing. I only own 92.5k shares. At $10 I reach my goals. At $20 I just have a little more money but not life changing. Nobody can predict the future. Who knows how long it will take to get to $10, $20, $30,…. Maybe from $10 to $20 takes only a week maybe I’ll regret not waiting a week. Maybe from $10 to $20 takes a year then I’ll be happy that I got my kitchen a year early. Only god knows. For me I can only focus on my little goals and that’s good enough.
navycmdr
2 hours ago
$Boooom ! Ex-Vance Staffer Kofsky Joins FHFA as Agency Eyes Job Cuts
Kofsky joined shortly after Director Bill Pulte was sworn-in,
said the people, who asked not to be identified as the move hadn’t
been announced.
The agency cut some jobs this week and is looking to accelerate those
efforts, some of the people said.
Jason Leopold, Lydia Beyoud and Katanga Johnson
Thu, March 20, 2025 at 4:51 PM PDT 2 min read
(Bloomberg) -- Aaron Kofsky, a former staffer to then-Senator JD Vance,
has joined the Federal Housing Finance Agency and is tasked with helping
to overhaul its structure and workforce, according to people familiar with the matter.
Kofsky joined shortly after Director Bill Pulte was sworn-in, said the people,
who asked not to be identified as the move hadn’t been announced.
The agency cut some jobs this week and is looking to accelerate those
efforts, some of the people said.
Kofsky is currently assigned to the FHFA’s Division of Housing Mission
and Goals, where he’ll help direct decisions about reducing the division’s
staff, the people said. The FHFA’s Division of Conservatorship Oversight
and Readiness is likely to be the next focus for staff cuts, some of the
people familiar with the matter said.
The agency’s head of human resources and its chief operating officer are
no longer active in their roles at the FHFA, one of the people said.
FHFA declined to comment. Kofsky didn’t immediately respond to a
request for comment.
The FHFA is responsible for overseeing Fannie Mae and Freddie Mac,
which were put under government supervision in the wake of the 2008
financial crisis. Hedge funds and other investors have called for the
government to release the two entities from conservatorship, a move
that could provide a windfall for shareholders.
The FHFA also oversees the Federal Home Loan Bank system,
which helps banks provide affordable mortgages to home purchasers.
Kofsky left Vance’s Senate office last year after Wired published a
story about his social media posts describing prior drug use. Kofsky
said in a statement to Wired that he regrets posting the comments
and is thankful that part of his life is behind him.
Before that, he worked briefly for acting Securities and Exchange
Commission Chairman Mark Uyeda when he was still a commissioner,
as well as for former Senator Patrick Toomey, a Pennsylvania Republican.
(Updates with details about head of human resources, chief operating officer in 4th paragraph.)
Rodney5
3 hours ago
Good morning bcde,
Quote: “PSPA is authorized by HERA. No further Congressional approval is required as long as it is in compliance with HERA.” End of Quote
That’s the thing the preferred stock purchase agreement is not in compliance with HERA…
Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee on a line of credit to be paid by the Enterprise.
The Charter Act, and the Federal Housing Enterprises Financial Safety and Soundness act of 1992 (FHEFSSA); Both as amended by the HOUSING AND ECONOMIC RECOVERY ACT OF 2008, (HERA).
AGAIN:
THIS IS WHAT ACTUALLY HAPPENED.
The difference in what the Treasury had authority to do and what actually happened during conservatorship as it relates to Treasury's actions, simplified. The GSE’s had a limited explicit obligation from Treasury in the amount of $2.25 billion. With the passing of HERA this explicit obligation was increased above the limit of $2.25 billion to $200 billion to purchase obligations of the company (MBS Obligations) up to the point in time expired December 31, 2009. Page 18 charter act.
STRESSING: PURCHASE OBLIGATIONS, MBS OBLIGATIONS of the enterprises.
HOUSING AND ECONOMIC RECOVERY ACT OF 2008, (HERA), gave to the Treasury this purchasing power; OBLIGATIONS, MBS OBLIGATIONS (nothing more nothing less)... Rather than purchasing obligations of the companies the Treasury decided to create a new product called the Senior Preferred Stock with an illegal commitment fee attached. Neither the Charter Act nor HERA authorize a commitment fee to be charged by the United States Treasury.
Where is "maximize profits for taxpayers" written in the Charter Act? Specifically, in this provision entitled Fee Limitation of the United States: ?
This leads to the question, who authorized the appropriation of taxpayer debt to provide the 200 billion commitment? Certainly not Congress. Treasury took it upon themselves and authorized a 200 billion commitment available in exchange for One Million Shares (1,000,000) with an initial liquidation preference of $1,000 per share. Shares of senior equity illegal and unconstitutional. Page 5 of the Senior Preferred Stock Purchase Agreement.
navycmdr
11 hours ago
Freddie Mac named its president, Mike Hutchins, as interim chief executive officer, according to a person familiar with the matter. Freddie's former CEO, Diana Reid, was terminated, said the person, asking not to be identified citing private information.23
Freddie Mac named its president, Mike Hutchins, as interim chief executive officer, according to a person familiar with the matter https://t.co/cNzZBHxJJd via @bpolitics— Cmdr Ron Luhmann (@usnavycmdr) March 21, 2025
The bill that created the FHFA explicitly states that the directors may not have direct interest in the regulated entities, AKA Freddie Mac and Fannie Mae.
The DOGE move to put Pulte on both boards is illegal and in conflict with the bill that created his position. pic.twitter.com/oRIGjCQFXa— DogeDumber (@DogeDumber) March 21, 2025
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Wingsjr
13 minutes ago
RickNagra
18 minutes ago
Stockman1010101
1 hour ago
Patswil
4 hours ago
Hot Features
Premium
