Fannie Mae and Freddie Mac about to take off big time.

[thombiz]

Recent gossip about the release of FnF from conservatorship suggests the actual release will be delayed until to 2016. My take on the reason for this is....there is ongoing work to build new housing finance infrastructure based on Obama's blueprint, the "White Papers of Feb 2011". As long as FnF are in conservatorship, they are under a gag order to not discuss and make public any of the proceedings. Release FnF and you release all the info about ongoing behind the scenes housing finance reform. This is reform that was never voted on by congress, never made into law, never given an agency charged with upholding the law, never given public input, never given an oversight committee. It is likely to be one of the most serious violations of the constitution in many years. We should demand the rule of law be used to examine every action being take under the blanket of housing finance reform and FnF conservatorship.

[thombiz]

The current Director of FHFA, Mel Watt, seems to be doing a pretty good job of following HERA. But the former acting Director, Ed De Marco was way out of control. So much so, 45 House Democrats signed a letter to President Obama requesting Ed De Marco be fired due to his unwillingness to implement all of Congress’ directives:

http://www.makeharp3happen.com/house-democrats-urge-president-to-dump-fhfa-director-ed-demarco/

[thombiz]

Update Nov 15.

This has been a wild and crazy week. I have been busier than ever trying to raise awareness of the efforts the government is taking to strip Fannie and Freddie of their assets including intellectual property. My research has exposed the fact that the Obama Administration, the Treasury, and FHFA have been systematically ignoring the laws and statutes of HERA, the law that was passed by Congress on July 27, 2008. In place of that work, they have substituted the work of the Obama Administrations White Papers of Feb 2011. This work is total housing finance reform! This goes way beyond the statutes of HERA. In fact, it becomes the new housing finance reforms that Congress couldn’t agree on and never passed a bill on. In short, it is a complete fraud in every sense of the word. I wouldn’t have a problem with it if Congress has passed a bill containing the same directives. At least Congress would have to address the issue of the future of Fannie and Freddie. In the absence of such consideration, the Obama Administration, the Treasury, and FHFA are busy making changes to the finance infrastructure that will be very difficult to reverse, and these changes profoundly impact Fannie and Freddie.

One of the things that has a major impact is the removal of highly developed intellectual property from both Fannie and Freddie. That intellectual property is “the processes” by which Fannie and Freddie “evaluate, guarantee, and package mortgages into securities”. This process has been perfected over years and years of close attention. In almost an instant, FHFA stripped that intellectual property from Fannie and Freddie and set it up as a separate company called CSP of Common Securitization Platform. As near as I can tell, Fannie and Freddie get no royalties from their intellectual property, but nonetheless, it is gone and FnF got nothing in return. FnF will have to use CSP in the future to package their own bundles of mortgages. This sure seems like expropriation to me.

Anyway, I am busy trying to come up with ways to force FHFA to end the conservatorship of FnF as soon as possible. The longer we wait, the more departments will be stripped away from FnF. You may ask why such a hurry to end conservatorship? The answer is simple. When FnF were put in conservatorship, stockholders lost all stockholder rights. Only by release from conservatorship can these rights be restored. When the rights are restored, FnF can then hire legal teams to challenge any assaults to their structure.

This work is ongoing. I am definitely looking out for your interests and I will keep you appraised as things develop.

Bob Thompson

[thombiz]

I have some very good news for you all. I just found and finished reading a speech Don Layton, CEO of Freddie Mac made around Nov 5th. In the speech, he discusses the changes FHFA is directing onto Fannie and Freddie. Don Layton says these changes have been an opportunity for Freddie Mac to update and modernize it's processes. The changes made are making Freddie Mac better and more able to fulfill it's mission. Instead of resisting the change, Freddie Mac is using change to improve itself from within in some surprising ways. He thinks Freddie Mac will emerge better equipped to meet market demands than ever before.

I'm heavy into Freddie Mac, so his speech is a big relief. I was very concerned that deals were being made in the back room which were crippling Freddie Mac beyond repair. Don Layton says they are using the changes to make positive improvements to Freddie.

I don't know what Fannie Mae is doing, but I am now able to rest when it comes to Freddie Mac. Have a good weekend.

[thombiz]

Mel Watts, Director of FHFA, met with the Senate Banking Committee this morning and has agreed to the need for and release of Fannie and Freddie from conservatorship. It's just a matter of working out the details. Both Fannie and Freddie Stock is up about $0.30 per share just 90 minutes later. If you don't want to get left behind....it is time to buy!

[thombiz]

Just half an hour later it is up an additional $0.15 per share.

[thombiz]

Just as I predicted.....It is happening! Watch it go .....