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The Fannie Mac Daddy: Fannie Freddie To Merge Select Operations
In what we are sure will be a BLS job creating moment, Fannie Mae and Freddie Mac will create a common platform for issuing MBS as they wind down operations and plan for a future in which the two companies no longer exist. Big is about to get bigger as Bloomberg reports, these two GOEs will start sharing risk with private financiers in the single-family loan market. FHFA head Ed DeMarco comments that they are beginning to move to a "post-conservatorship world," though we assume still as explicitly and implicitly guaranteed by the good taxpaying public of America. The merger and creation of a joint securitization company with the goal of executing $30bn each in transactions partnered with the private sector will attempt to reduce that taxpayer load and "ease the transition from where we are today to wherever lawmakers decide the country ought to ultimately go."
Fannie Mae (FNMA) and Freddie Mac will create a common platform for issuing mortgage-backed securities as they wind down operations and plan for a future in which the two companies no longer exist, their regulator said today.
The government-owned enterprises also will start sharing risk with private financiers in the single-family loan market, aim to reduce their multifamily housing business by 10 percent and continue raising fees they charge to guarantee securities, Edward J. DeMarco, the Federal Housing Finance Agency’s acting director, said on a conference call with reporters.
DeMarco unveiled his agency’s goals for Fannie Mae and Freddie Mac as the two companies head into their fifth year under U.S. conservatorship. FHFA is shrinking operations while waiting for President Barack Obama and Congress to move forward with a broader overhaul of the nation’s housing-finance system.
“One of the challenges that everyone has in conceiving of housing-finance reform and moving to a post-conservatorship world is, where’s the plumbing? Where are the rules? Where are the standards?” DeMarco said. “What we’re trying to do with these strategic goals is to build out that infrastructure and those standards so it would ease the transition.”
Washington-based Fannie Mae and Freddie Mac of McLean, Virginia, buy mortgages and package them into securities on which they guarantee principal and interest. The companies, seized by federal regulators amid soaring losses in 2008, returned to profitability last year after drawing $190 billion in taxpayer aid.
Single Standard
Their new joint securitization company will have its own chief executive officer and chairman, and will be funded by Fannie Mae and Freddie Mac (FMCC), DeMarco said today. It will create a single standard for issuing securities that could survive independently if the two companies no longer exist, he said.
The two enterprises this year also will aim to execute $30 billion each in transactions in which they share the risk of backing single-family loans with private participants in the market. Those could involve mortgage insurance or include the issuance of different types of securities.
“What we’re looking for is to have some portion of the risk sold off to private owners and that way reduce the exposure of the taxpayer and demonstrate the viability of these types of transactions,” DeMarco said on the call.
Fannie Mae and Freddie Mac will also try to reduce their backing of multifamily loans by 10 percent this year, largely through raising prices and tightening underwriting, he said. They’ll also attempt to sell off at least 5 percent of the illiquid assets in their retained portfolios.
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The sound of two trash trucks backing into each other.....................
Isn't this like taking Ron Jeremy and having him breed with a crack whore????? Two old, washed up parties hooking up to create a love child. This will surely end well........
Don't diss Ron Jeremy, who brought hope to overweight greasy guys everywhere that they can bang hot chicks. Also, the poor brother is sick, and not how you would think.
http://www.hollywoodreporter.com/news/porn-legend-ron-jeremy-hospitalized-416842
(At least he has jewish doctors)
A program (actually multiple identical programs) imagined and created by the government, run by the government, funded by the government, managed by the government, overseen by the government, guaranteed by the government, bankrupted by the government, placed under government conservatorship, merged by the government, making campaign contributions to the government, extending preferential loans to government officials (complicit therein...)
All on the taxpayer's dime
PS Was Ron circumcised? Just thinkin' because with Fannie and Freddie the taxpayer got more than his foreskin handed to him
http://www.jpost.com/Headlines/Article.aspx?id=305248
Can someone reread this. But did Obama just declare war on Israel?
Voting violence in Kenya poll By REUTERS LAST UPDATED: 03/04/2013 05:37 MOMBASA, Kenya, Two Kenyan police officers, deployed to keep the peace in a tense presidential election following hundreds of deaths after a 2007 vote, were hacked to death by unidentified attackers before polling stations opened on Monday, a government official said.
He did not. But this stunt puts into question his chances for a third term as president.
Finally flying his true colors? That would be news, and dangerous as hell.
I'll make a rash prediction. And I'm not applying said prognostication here to anyone in particular, just stating for the record, as a general observation given circumstances. <ahem>
In the end-game run-up to an American Fascist police state (where the over/under is currently at around 3 years) one of the tests of purity of the party faithful will be to have publicly rebuked Israel.
Good point.
As in they only get the silver medal for creating the Patriot Act?
...dang...I think this is actually happening. Someone is trying to leverage the Sampson option.
http://www.ynetnews.com/articles/0,7340,L-4351970,00.html
http://www.presstv.ir/detail/2013/03/04/291866/us-to-ask-israel-to-pull-out-of-west-bank/
http://www.vosizneias.com/125483/2013/03/04/washington-report-obama-demands-timetable-for-israel-extraction-from-west-bank
Quoting from the article:
"Obama has made it clear to Netanyahu that his visit is not about
photo-ops"
No further information available at this time. Or any other time. Ever.
Better men than Obama, and that's all of us, have had an unfortunate accident after crossing god's chosen tribe.
That's not true. More will be learned in about 15 years during the criminal war trials.
Bring in Mozillo to head the Fannie-Freddie merger. Linda green can be the CFO. And recruit Corzine; he can handle the Rehypothecated Mortgages Division.
I also sense a distubance in the Force, as if the sith bankers are conspiriing to offload "risk" onto this new joint venture. Has the GOVT ever actually offloaded risk to the private sector, or absorbed it? The only way this could be better is if they brought student loans into the same joint venture, and "shared the risk." I think the real play on this is a gateway for the Fed to suck up all the MBS from the banks quietly, so they can clean up their (im)balance sheets.
Ah - a restructuring. Splendid!
Appealing as Granny leper porno.
Granny leper porn?
Holy shit man!
"Just keep the tip"
You owe me a keyboard.
Knucks is on a roll tonight. We need to clone that man, or at least find out what he drinks;)
The boy ain't right, just my kind ;-)
It's called Hansen's disease now. Other than that I didn't find your comment offensive. ;)
There really is porn of everything.
Er ... so I'm told.
Actualllllllllllllyyyyyyy.... finding a real donkey show is harder than you might think. It is only the item of legend, from a simpler time.
Quote:
"...ill attempt to reduce that taxpayer load..."
Ahahahahaha! Ahaha! Ah..... Ahahahahahahaha"
Peru, with its problems, looks less STUPID at the top...
Hmmm. DeMarco's still here, and otherwise no mention of an Administration replacement.
I noticed that. Maybe no one wants to pick up nickels ahead of the steam roller.
They're gonna replace the Administration?
From you lips to god's ears.
Maybe if we would all chant it in Yiddish?
When I was a small kid one of my Jewish playmates had a pet Gefilte fish.
Did he keep it in the tub? (Points if anyone knows that reference)
You know what happens when crime families join up? The federation wants "A piece of the action". Bela Oxmix hits Krakow, Krako hits Teppo, China hits Japan, Russia hits India, US hits Israel.
Everyone is betrayed, nobody wins.
Them as betrays first betrays best.
"....transactions partnered with the private sector will attempt to reduce that taxpayer load..."
what a load of goat shit.....the "private" sector is just as public as the public sector in the nazi state....tax payer money will be shoveled at this new monstrosity as the old because amerika is a kleptocracy run by criminals and the criminally incompetent. these are your welfare queens....
correct,,, Taxpayer looses ,,,here's the BS report
no open free market,,,,
http://bipartisanpolicy.org/library/report/housing-future
They forgot sallie mae! She's bankrupt too!!
Looks like it could be a three-way!!
http://www.youtube.com/watch?v=A939QRRSNV4
sigh Maples $34 bucks, 1 oz bars 35...if only i could get them at $28-29
The "money laundering" coins are up too!
Ahhh, the rape and plunder of the general sheep..uh, public continues unabated with 100 % complacency and complicity of the taskmasters, CONgress and the other minions of the evil empire
The majority of "the public" loves having the government prop up real estate and equities. "The public" expresses dismay and indignation at big gubmint, but they really, really like having future taxpayers and the Fed bail them out on their houses and 401Ks.
The middle class pisses and moans about EBT cards, Obama phones, etc. but they Demand Action when it comes to saving their dumb asses from the risky speculations they made in real estate and equities.
Bernanke will print, prop up the stock market, and buy MBS. The government will absorb or guarantee all kinds of shitty risk assets from Fannie & Freddie. And "the public" will applaud their efforts.
We ZH readers are not representative of the general population.
Have them merge with Chapter 7, and its people merge with Free Market Jobs.
The bigger they are, the louder the boom when they collapse.
That applies usually only in the public sector unless you have .bank at end of your URL. When .gov, which is supposed to be getting smaller, I know, WTF planet am I living on, gets bigger and their tentacles encompass and strangle everything else, there is no failing. Just the debt servants pay fir generations...oh look! Hooop Here We be
This article forgot to mention that Obama is the greatest leader the world has ever seen - someone should report this to the authorities
oops.
Obviously the GSE's are risk filters.
http://www.businessinsider.com/henry-blodget-heres-the-real-reason-fanni...
http://ochousingnews.com/news/gses-now-permit-unrestricted-strategic-def...
ObamaCare, too, replaces the inability to move betw states
to take advantage of job/r.e. op's for many with risk factors,
lest they suffer exclusions, and, for most, the eventual choice
of "go naked" of "premium death spiral" with
oligopoly (fast becoming exquisitely monopolistic) and
exquisitely tax-subsidized risk filtering.
The former should be loans outright to empowered, enabled
communities.
The latter should be risk equalization other than by way
of taxpayer subsidized risk filtering.
More on the Liquidity Trap, ZH:
There's Little Incentive To
Invest In Debt.
No One's Gettin Anything On Savings.
I Couldn't In A Million Years
Imagine What Else Congress Could
Do To Bludgeon Everyone/Anything Who's/That's Not
A Billionaire Or Major Corporation.
I downvoted you for BI/Henry Blodget. I put better shit down on paper each morning than his bloggragator ripoff of HUFFPuke. Blodget couldn't draw a conclusion of his own with finger paints.
Cut and paste? Please, spend half-a-minute composing, using correct white space, punctuation, making coherent statements.
Usher in a New World Currency, man, sheesh!
Screw this...Taxpayers need to get the profit for the backing of mortgages, not some private entity who assumes little risk. My hope has always been that they would roll FNM/FRE into a fully public low-profit entity to absorb current mortgages and have social security/govt pension plans fund the origination market. Instead we have mor eof the same. I fucking give up on them ever actually trying to help the people. Might as well move to Colorado so I can just smoke myself into ignorance.. but it doesn't really work that way, does it?
"Unload risk" means sell for pennies to jpm at taxpayer (loss) expense. They in turn will dump them on the pension fund for a profit. If they can't do that they then dump them back onto the fed for a profit. Moral raping, er, hazard, still thrives in freedumb's land.
Buy-high-sell-low seems to be how the looting operation is being run at the moment.
No doubt the mreger of taxpayer money with banker wallets will continue unabated.
FRAUDCO: new name c-c-c-c-an we require realtors who pimp new legalised buyers into the home scam.
have at least 38 DD's to get no doc loans and skip the mortgage licensees? LOL giggle. PULLEEEEZE. !
Tyler Durden, when you use a cartoon to illustrate a ZeroHedge posting, please embed a link to the full-size image, so we can see what the cartoon characters are doing and saying. Thanks!
Follow these steps to gain vast fortunes:
#1. You bribe politicians to privatize an industry that was nationalized (hopefully a monopoly). You pay the government pennies on the dollar.
#2. You keep the business for as long as it’s profitable. Raise prices, fire employees, neglect the infrastructure, suck it dry from every penny, give yourself insane compensation, and bury the business in debt.
#3. You bribe a politician to nationalize your business. Have the government pay you a grotesquely inflated price.
#4. Have the taxpayers pay to rebuild the business and pay off debts.
#5. Go back to point #1 and PROFIT!
There is only one level of risk the taxpayer should be exposed to in the reorganization, ZERO. The best way to promote home ownership is low property taxes not subsidized mortgages. Property taxes can be kept low by not funding golf courses, sports stadiums, and huge worthless govt. bureaucracies.