Hit 4.09 today! Its on fire! Get in now, its a once in a lifetime stock. Book value of 54/sh
http://www.reuters.com/article/2013/05/28/us-citi-fhfa-idUSBRE94R0YR20130528
FNMA ~posted $58.7 billion profit New DD with Links~
The Federal National Mortgage Association, commonly known as [FONT=inherit !important][FONT=inherit !important]Fannie [/FONT][FONT=inherit !important]Mae[/FONT][/FONT](FNMA), is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to [FONT=inherit !important][FONT=inherit !important]home [/FONT][FONT=inherit !important]buyers[/FONT][/FONT].
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA posted record net profit $58.7 BILLION, the largest quarterly net income in the company’s history.
Q1 profit makes FNMA the most profitable company in the world. Remember Apple made 41.7 billion dollars profit last year. FNMA just Q1 profit passed that record.
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013_release.pdf
2) FNMA the most profitable financials firm IN USA
JP MORGAN $6.5 billion profit
WELLS FARGO $5.1 billion profit
Berkshire Hathaway $4.8 billion profit.
3) Also FNMA posted $17.2 billion record net profit in 2012, the largest annual and quarterly net income in the company’s history.
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2012/q42012_release.pdf
------------------------------------------------------------------
So far FNMA paid 95 billion dollars to US government as dividend. The company received 117.1 billion dollars from The government.
------------------------------------------------------------------
4) A PENNY STOCK FNMA, HELPS US BUDGET FOR SURPLUS
Treasury reports $113B surplus because of FNMA's big contribution
The government will also benefit next month from a $59.4 billion payment from mortgage giant Fannie Mae and a $7 billion payment from [FONT=inherit !important][FONT=inherit !important]Freddie [/FONT][FONT=inherit !important]Mac[/FONT][/FONT]. The mortgage giants are profitable again and are paying dividends to the government in return for the loans the received during the financial crisis.
Treasury Secretary Jacob Lew said in an interview with CNBC Friday that in part because of Fannie's payment, the government's borrowing limit won't be reached until "at least after Labor Day" in early September. Many analysts had expected another budget battle this summer. In 2011, a dispute between the Obama Administration and Congress over whether to raise the limit lasted until the deadline.
http://finance.yahoo.com/news/us-treasury-reports-113b-surplus-180737732.html
===============================================================
5) FNMA book value per share 54 dollars As of March 31, 2013
FNMA total equity: 62,368,000,000 dollars
page 35
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013.pdf
FNMA total outstanding shares: 1,158,077,970
First page
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013.pdf
Book value: Total Equity/Outstanding shares
FNMA book value= 62,368,000,000/1,158,077,970= 53.8 dollars
------------------------------------------------------------------
6) FNMA common shares Top Institutional Holders
Top Institutional Holders
Holder Shares % Out Value* Reported
Steward Capital Management, Inc. 121,110 0.01 83,565 Mar 31, 2013
Heritage Investors Management Corporation 100,600 0.01 69,414 Mar 31, 2013
CapWealth Advisors, LLC 71,070 0.01 49,038 Mar 31, 2013
Rhumbline Advisors 63,500 0.01 43,815 Mar 31, 2013
Bath Savings Trust Co 11,000 0.00 7,590 Mar 31, 2013
Sarofim, Fayez 11,200 0.00 2,912 Dec 31, 2012
Cambridge Investment Research Advisors Inc. 16,049 0.00 11,073 Mar 31, 2013
Ray (Gerald L) & Associates 17,700 0.00 12,213 Mar 31, 2013
Geduld, Emanuel, E. 25,000 0.00 17,250 Mar 31, 2013
Marco Investment Management LLC 10,571 0.00 2,748 Dec 31, 2012
Top Mutual Fund Holders
Holder Shares % Out Value* Reported
Capital Income Builder, Inc. 12,458,206 1.08 8,596,162 Mar 31, 2013
Lord Abbett Bond-Debenture Fund 818,000 0.07 212,680 Dec 31, 2012
MET Investors Ser Tr-Lord Abbett Bond Debenture Portfolio 227,275 0.02 59,091 Dec 31, 2012
Fidelity Select Portfolios - Brokerage&Investment Mgt 75,900 0.01 52,371 Mar 31, 2013
Vantagepoint Mid/Small Company Index Fund 66,437 0.01 17,273 Dec 31, 2012
Vantagepoint Funds-Broad Market Index Fund 37,770 0.00 9,820 Dec 31, 2012
Fidelity Asset Manager 50% 38,128 0.00 26,308 Mar 31, 2013
Fidelity Stock Selector All Cap Fund 44,157 0.00 30,468 Mar 31, 2013
Fidelity Select Portfolios - Financial Services 49,600 0.00 34,224 Mar 31, 2013
Lord Abbett Series Fund-Bond Debenture Portfolio 36,000 0.00 9,360 Dec 31, 2012
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
------------------------------------------------------------------
7) Fannie Mae and Bank of America resolution $11.6 billion on January 07, 2013.
Fannie Mae announced a comprehensive resolution with Bank of America, including a $10.3 billion agreement on existing and prospective repurchase requests on a specified population of loans and an additional payment of $1.3 billion to address servicing issues.
http://www.fanniemae.com/portal/about-us/media/financial-news/2013/5910.html
http://phx.corporate-ir.net/phoenix...wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJzaWQ9NTc=
------------------------------------------------------------------
8) The next payment to FNMA from Swiss Bank, UBS ???
WSJ: Court Says Swiss Bank UBS Must Face Mortgage Lawsuit: $6.4 billion
By CHAD BRAY
UBS AG UBSN.VX -1.11% must defend a lawsuit brought by the federal regulator for Fannie Mae FNMA +2.11% and Freddie Mac FMCC +4.57% over the sale of $6.4 billion in securities backed by [FONT=inherit !important][FONT=inherit !important]residential [/FONT][FONT=inherit !important]mortgages[/FONT][/FONT], including subprime home loans, a federal appeals court has ruled.
The ruling, by the U.S. Second Circuit Court of Appeals, is the latest setback for the Swiss bank and other large banks defending a series of lawsuits by the Federal Housing Finance Agency. The regulator claims the banks misled Fannie Mae and Freddie Mac about the quality of the underlying mortgages related to nearly $200 billion in mortgage investments.
http://online.wsj.com/article/SB10001424127887324600704578404482021510300.html
http://finance.yahoo.com/news/appeals-court-says-housing-suit-145433605.html
------------------------------------------------------------------
9) There are 20 Banks have to get agreement with FNMA to get back bad loans that they sold FNMA. TOTAL AMOUNT of bad loans 200 BILLION DOLLARS!!!
http://beta.fool.com/kcolona/2013/0...o-bank-profits/28871/?source=eogyholnk0000001
------------------------------------------------------------------
10) FNMA's source of profit: Fannie Mae’s single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and was 3.02 percent as of March 31, 2013, compared with 5.47 percent as of March 31, 2010.
PAGE 7
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013_release.pdf
------------------------------------------------------------------
11) FNMA winding down theory collapsed because
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the [FONT=inherit !important][FONT=inherit !important]Home [/FONT][FONT=inherit !important]Affordable [/FONT][FONT=inherit !important]Refinance [/FONT][FONT=inherit !important]Program[/FONT][/FONT] by two years to Dec. 31, 2015.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
• April 11, 2013 • 10:07am
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the [FONT=inherit !important][FONT=inherit !important]Home [/FONT][FONT=inherit !important]Affordable [/FONT][FONT=inherit !important]Refinance[/FONT][/FONT] Program by two years to Dec. 31, 2015.
The program was set to expire at the end of this year.
FHFA determined that extending the program will provide borrowers additional opportunities to [FONT=inherit !important][FONT=inherit !important]refinance[/FONT][/FONT], give clear guidance to lenders and reduce losses for the government-sponsored enterprises and taxpayers.
"More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk," said Ed DeMarco, acting director of the FHFA.
He added, "We are extending the program so more underwater borrowers can benefit from the lower interest rates."
Additionally, FHFA will soon launch a campaign to inform homeowners about HARP. The campaign will educate consumers about the program, its eligibility requirements and provide options on how to utilize the program before it ends.
To be eligible for a HARP refinance, homeowners must meet various criteria including, the loan must be owned or guaranteed by one of the GSEs, the loan most have been sold to one of the enterprises on or before May 31, 2009 and the current loan-to-value ratio must be greater than 80%.
As of January 2013, more than 2.2 million borrowers have refinanced through HARP since its inception in April 2009.
http://www.housingwire.com/news/2013/04/11/fhfa-extends-harp-2015
Fannie and Freddie’s regulator recently announced a two-year extension for HARP. The program had had been slated to expire at the end of this year, and will now run through 2015.
http://blogs.marketwatch.com/thetel...-homeowners-take-record-share-of-refinancing/
------------------------------------------------------------------
12) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fannie-mae-names-new-chief.html?_r=0
==================================================================
13) Fannie Mae CEO: We will have strong profits for the foreseeable future
By: Bloomberg TV interview | Thu, Apr 11, 2013
In his first TV interview since the company reported record profits, Fannie Mae (FNMA) CEO Tim Mayopoulos told Bloomberg TV's Peter Cook today that U.S. taxpayers could see a net gain from their bailout as the housing market rebounds. Mayopoulos said, "I do think, given the strength of our future profitability, that it is possible that we will be able to pay dividends that would be equal to or greater than the amount of money that we've received from the Treasury Department."
Mayopoulos also said, "There is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be."
Mayopoulos on Fannie Mae's turnaround:
"We are obviously pleased with the turnaround and from our perspective. This is not something that miraculously came upon us. This is the result of four plus years of work that we've been doing at Fannie Mae. We've really been very focused on building a new book of business that will be profitable. We've been managing the legacy book to minimize losses and we've been focused on pricing appropriately for the risk that we take. While it probably seems like a very sudden turnaround to those outside the company, for those inside the company we've been working on this for years to try to get to this place."
On whether the profits are sustainable over the long-term:
"We do think that we will have strong profits for the foreseeable future. The degree of confidence about that varies the farther out you go because we can't predict the future years out, but for the next few years we expect clearly to be profitable."
On whether taxpayers could earn a profit on their investment in Fannie:
"We are paying substantial dividends to taxpayers, so the company received payments from the Treasury of $116 billion. So far we have paid dividends in excess of $35 billion. I do think, given the strength of our future profitability, it is possible that we will pay dividends that will be equal to or greater than the amount of money that we have received from the Treasury department."
On whether the debate for the government to replace Fannie Mae will happen sooner rather than later:
"I'm not sure if it will happen sooner rather than later. I do think there is a risk that I think people should not accept, but there is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be. I think the sooner we get there, the sooner private capital is likely to come back to this market."
On whether the reality is that the better Fannie Mae does, the sooner it goes away:
"That's one possibility. I think what our return to profitability does is allow policymakers to think about a full range of potential outcomes. They don't have to start with the assumption that creating some successors to Fannie and Freddie necessarily means that we have to accept hundreds of billions of dollars of losses for taxpayers. I do think the taxpayers may well receive their money back. I think what this has done is freed policymakers to think about what the full range of possibilities should be. There is a lot of debate about that, but I think the key is getting to an answer in the foreseeable future because no matter what you think the future housing finance system should look like, everybody agrees that at the moment the taxpayer shouldn't be on the hook for 90% of the market. Between Fannie, Freddie and [FONT=inherit !important][FONT=inherit !important]FHA[/FONT][/FONT], the taxpayers are guaranteeing 90% of all the mortgages that are being written across the country. That doesn't make sense no matter what you think the future of the housing finance system should look like."
-------------------------------------------------------------
Catch the full interview this Sunday (April 14, 2013) on "Capitol Gains," airing at 11:30 am ET on WUSA9 in Washington and nationally on Bloomberg Television at 12 pm and 5 pm ET.
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxp...ck-fannie-mae-ceo-gE75HM8_SOCGgvHCjFEq4Q.html
---------------------------------------------------------
EXPECTED BIG NEWS: FHFA NEW CHIEF APPOINTMENT AND the FUTURE OF C-CHIP
---------------------------------------------------------
According to the company 10k annual and 10Q quarterly filing and news, The company will be profitable for the foreseeable future.
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013_release.pdf
http://www.reuters.com/article/2013/05/28/us-citi-fhfa-idUSBRE94R0YR20130528
FNMA ~posted $58.7 billion profit New DD with Links~
The Federal National Mortgage Association, commonly known as [FONT=inherit !important][FONT=inherit !important]Fannie [/FONT][FONT=inherit !important]Mae[/FONT][/FONT](FNMA), is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to [FONT=inherit !important][FONT=inherit !important]home [/FONT][FONT=inherit !important]buyers[/FONT][/FONT].
Web Site: http://www.fanniemae.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1) FNMA posted record net profit $58.7 BILLION, the largest quarterly net income in the company’s history.
Q1 profit makes FNMA the most profitable company in the world. Remember Apple made 41.7 billion dollars profit last year. FNMA just Q1 profit passed that record.
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013_release.pdf
2) FNMA the most profitable financials firm IN USA
JP MORGAN $6.5 billion profit
WELLS FARGO $5.1 billion profit
Berkshire Hathaway $4.8 billion profit.
3) Also FNMA posted $17.2 billion record net profit in 2012, the largest annual and quarterly net income in the company’s history.
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2012/q42012_release.pdf
------------------------------------------------------------------
So far FNMA paid 95 billion dollars to US government as dividend. The company received 117.1 billion dollars from The government.
------------------------------------------------------------------
4) A PENNY STOCK FNMA, HELPS US BUDGET FOR SURPLUS
Treasury reports $113B surplus because of FNMA's big contribution
The government will also benefit next month from a $59.4 billion payment from mortgage giant Fannie Mae and a $7 billion payment from [FONT=inherit !important][FONT=inherit !important]Freddie [/FONT][FONT=inherit !important]Mac[/FONT][/FONT]. The mortgage giants are profitable again and are paying dividends to the government in return for the loans the received during the financial crisis.
Treasury Secretary Jacob Lew said in an interview with CNBC Friday that in part because of Fannie's payment, the government's borrowing limit won't be reached until "at least after Labor Day" in early September. Many analysts had expected another budget battle this summer. In 2011, a dispute between the Obama Administration and Congress over whether to raise the limit lasted until the deadline.
http://finance.yahoo.com/news/us-treasury-reports-113b-surplus-180737732.html
===============================================================
5) FNMA book value per share 54 dollars As of March 31, 2013
FNMA total equity: 62,368,000,000 dollars
page 35
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013.pdf
FNMA total outstanding shares: 1,158,077,970
First page
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013.pdf
Book value: Total Equity/Outstanding shares
FNMA book value= 62,368,000,000/1,158,077,970= 53.8 dollars
------------------------------------------------------------------
6) FNMA common shares Top Institutional Holders
Top Institutional Holders
Holder Shares % Out Value* Reported
Steward Capital Management, Inc. 121,110 0.01 83,565 Mar 31, 2013
Heritage Investors Management Corporation 100,600 0.01 69,414 Mar 31, 2013
CapWealth Advisors, LLC 71,070 0.01 49,038 Mar 31, 2013
Rhumbline Advisors 63,500 0.01 43,815 Mar 31, 2013
Bath Savings Trust Co 11,000 0.00 7,590 Mar 31, 2013
Sarofim, Fayez 11,200 0.00 2,912 Dec 31, 2012
Cambridge Investment Research Advisors Inc. 16,049 0.00 11,073 Mar 31, 2013
Ray (Gerald L) & Associates 17,700 0.00 12,213 Mar 31, 2013
Geduld, Emanuel, E. 25,000 0.00 17,250 Mar 31, 2013
Marco Investment Management LLC 10,571 0.00 2,748 Dec 31, 2012
Top Mutual Fund Holders
Holder Shares % Out Value* Reported
Capital Income Builder, Inc. 12,458,206 1.08 8,596,162 Mar 31, 2013
Lord Abbett Bond-Debenture Fund 818,000 0.07 212,680 Dec 31, 2012
MET Investors Ser Tr-Lord Abbett Bond Debenture Portfolio 227,275 0.02 59,091 Dec 31, 2012
Fidelity Select Portfolios - Brokerage&Investment Mgt 75,900 0.01 52,371 Mar 31, 2013
Vantagepoint Mid/Small Company Index Fund 66,437 0.01 17,273 Dec 31, 2012
Vantagepoint Funds-Broad Market Index Fund 37,770 0.00 9,820 Dec 31, 2012
Fidelity Asset Manager 50% 38,128 0.00 26,308 Mar 31, 2013
Fidelity Stock Selector All Cap Fund 44,157 0.00 30,468 Mar 31, 2013
Fidelity Select Portfolios - Financial Services 49,600 0.00 34,224 Mar 31, 2013
Lord Abbett Series Fund-Bond Debenture Portfolio 36,000 0.00 9,360 Dec 31, 2012
http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders
------------------------------------------------------------------
7) Fannie Mae and Bank of America resolution $11.6 billion on January 07, 2013.
Fannie Mae announced a comprehensive resolution with Bank of America, including a $10.3 billion agreement on existing and prospective repurchase requests on a specified population of loans and an additional payment of $1.3 billion to address servicing issues.
http://www.fanniemae.com/portal/about-us/media/financial-news/2013/5910.html
http://phx.corporate-ir.net/phoenix...wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJzaWQ9NTc=
------------------------------------------------------------------
8) The next payment to FNMA from Swiss Bank, UBS ???
WSJ: Court Says Swiss Bank UBS Must Face Mortgage Lawsuit: $6.4 billion
By CHAD BRAY
UBS AG UBSN.VX -1.11% must defend a lawsuit brought by the federal regulator for Fannie Mae FNMA +2.11% and Freddie Mac FMCC +4.57% over the sale of $6.4 billion in securities backed by [FONT=inherit !important][FONT=inherit !important]residential [/FONT][FONT=inherit !important]mortgages[/FONT][/FONT], including subprime home loans, a federal appeals court has ruled.
The ruling, by the U.S. Second Circuit Court of Appeals, is the latest setback for the Swiss bank and other large banks defending a series of lawsuits by the Federal Housing Finance Agency. The regulator claims the banks misled Fannie Mae and Freddie Mac about the quality of the underlying mortgages related to nearly $200 billion in mortgage investments.
http://online.wsj.com/article/SB10001424127887324600704578404482021510300.html
http://finance.yahoo.com/news/appeals-court-says-housing-suit-145433605.html
------------------------------------------------------------------
9) There are 20 Banks have to get agreement with FNMA to get back bad loans that they sold FNMA. TOTAL AMOUNT of bad loans 200 BILLION DOLLARS!!!
http://beta.fool.com/kcolona/2013/0...o-bank-profits/28871/?source=eogyholnk0000001
------------------------------------------------------------------
10) FNMA's source of profit: Fannie Mae’s single-family serious delinquency rate has declined each quarter since the first quarter of 2010, and was 3.02 percent as of March 31, 2013, compared with 5.47 percent as of March 31, 2010.
PAGE 7
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013_release.pdf
------------------------------------------------------------------
11) FNMA winding down theory collapsed because
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the [FONT=inherit !important][FONT=inherit !important]Home [/FONT][FONT=inherit !important]Affordable [/FONT][FONT=inherit !important]Refinance [/FONT][FONT=inherit !important]Program[/FONT][/FONT] by two years to Dec. 31, 2015.. ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
• April 11, 2013 • 10:07am
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the [FONT=inherit !important][FONT=inherit !important]Home [/FONT][FONT=inherit !important]Affordable [/FONT][FONT=inherit !important]Refinance[/FONT][/FONT] Program by two years to Dec. 31, 2015.
The program was set to expire at the end of this year.
FHFA determined that extending the program will provide borrowers additional opportunities to [FONT=inherit !important][FONT=inherit !important]refinance[/FONT][/FONT], give clear guidance to lenders and reduce losses for the government-sponsored enterprises and taxpayers.
"More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk," said Ed DeMarco, acting director of the FHFA.
He added, "We are extending the program so more underwater borrowers can benefit from the lower interest rates."
Additionally, FHFA will soon launch a campaign to inform homeowners about HARP. The campaign will educate consumers about the program, its eligibility requirements and provide options on how to utilize the program before it ends.
To be eligible for a HARP refinance, homeowners must meet various criteria including, the loan must be owned or guaranteed by one of the GSEs, the loan most have been sold to one of the enterprises on or before May 31, 2009 and the current loan-to-value ratio must be greater than 80%.
As of January 2013, more than 2.2 million borrowers have refinanced through HARP since its inception in April 2009.
http://www.housingwire.com/news/2013/04/11/fhfa-extends-harp-2015
Fannie and Freddie’s regulator recently announced a two-year extension for HARP. The program had had been slated to expire at the end of this year, and will now run through 2015.
http://blogs.marketwatch.com/thetel...-homeowners-take-record-share-of-refinancing/
------------------------------------------------------------------
12) FNMA CEO is a well-known Lawyer and Former BAC Counsel
http://www.nytimes.com/2012/06/06/business/fannie-mae-names-new-chief.html?_r=0
==================================================================
13) Fannie Mae CEO: We will have strong profits for the foreseeable future
By: Bloomberg TV interview | Thu, Apr 11, 2013
In his first TV interview since the company reported record profits, Fannie Mae (FNMA) CEO Tim Mayopoulos told Bloomberg TV's Peter Cook today that U.S. taxpayers could see a net gain from their bailout as the housing market rebounds. Mayopoulos said, "I do think, given the strength of our future profitability, that it is possible that we will be able to pay dividends that would be equal to or greater than the amount of money that we've received from the Treasury Department."
Mayopoulos also said, "There is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be."
Mayopoulos on Fannie Mae's turnaround:
"We are obviously pleased with the turnaround and from our perspective. This is not something that miraculously came upon us. This is the result of four plus years of work that we've been doing at Fannie Mae. We've really been very focused on building a new book of business that will be profitable. We've been managing the legacy book to minimize losses and we've been focused on pricing appropriately for the risk that we take. While it probably seems like a very sudden turnaround to those outside the company, for those inside the company we've been working on this for years to try to get to this place."
On whether the profits are sustainable over the long-term:
"We do think that we will have strong profits for the foreseeable future. The degree of confidence about that varies the farther out you go because we can't predict the future years out, but for the next few years we expect clearly to be profitable."
On whether taxpayers could earn a profit on their investment in Fannie:
"We are paying substantial dividends to taxpayers, so the company received payments from the Treasury of $116 billion. So far we have paid dividends in excess of $35 billion. I do think, given the strength of our future profitability, it is possible that we will pay dividends that will be equal to or greater than the amount of money that we have received from the Treasury department."
On whether the debate for the government to replace Fannie Mae will happen sooner rather than later:
"I'm not sure if it will happen sooner rather than later. I do think there is a risk that I think people should not accept, but there is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be. I think the sooner we get there, the sooner private capital is likely to come back to this market."
On whether the reality is that the better Fannie Mae does, the sooner it goes away:
"That's one possibility. I think what our return to profitability does is allow policymakers to think about a full range of potential outcomes. They don't have to start with the assumption that creating some successors to Fannie and Freddie necessarily means that we have to accept hundreds of billions of dollars of losses for taxpayers. I do think the taxpayers may well receive their money back. I think what this has done is freed policymakers to think about what the full range of possibilities should be. There is a lot of debate about that, but I think the key is getting to an answer in the foreseeable future because no matter what you think the future housing finance system should look like, everybody agrees that at the moment the taxpayer shouldn't be on the hook for 90% of the market. Between Fannie, Freddie and [FONT=inherit !important][FONT=inherit !important]FHA[/FONT][/FONT], the taxpayers are guaranteeing 90% of all the mortgages that are being written across the country. That doesn't make sense no matter what you think the future of the housing finance system should look like."
-------------------------------------------------------------
Catch the full interview this Sunday (April 14, 2013) on "Capitol Gains," airing at 11:30 am ET on WUSA9 in Washington and nationally on Bloomberg Television at 12 pm and 5 pm ET.
LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO
http://www.bloomberg.com/video/taxp...ck-fannie-mae-ceo-gE75HM8_SOCGgvHCjFEq4Q.html
---------------------------------------------------------
EXPECTED BIG NEWS: FHFA NEW CHIEF APPOINTMENT AND the FUTURE OF C-CHIP
---------------------------------------------------------
According to the company 10k annual and 10Q quarterly filing and news, The company will be profitable for the foreseeable future.
http://www.fanniemae.com/resources/file/ir/pdf/quarterly-annual-results/2013/q12013_release.pdf
| [h=1]FEDERAL NATL MTG ASSN COM FNMA: OTCBB - OTCQB[/h] | May 28, 2013 9:33 PM ET |
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https://petitions.whitehouse.gov/pe...-and-freddie-mac-common-shareholders/vYQfrKHP
Please sign the petition to release Fannie and Freddie
Please sign the petition to release Fannie and Freddie
