tag:blogger.com,1999:blog-940142538364421402.post6371422356788107980..comments2024-03-02T02:30:55.592-08:00Comments on Bill Maloni's GSE Blog: Gretchen to the RescueBill Malonihttp://www.blogger.com/profile/17459277100798719104noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-940142538364421402.post-89798726218962790562014-02-21T20:25:37.809-08:002014-02-21T20:25:37.809-08:00I'll have to ask around about that
"model...I'll have to ask around about that<br />"model."<br /><br />But, I believe--and I may be way out on a limb here--when people discuss "public utility" in the GSE context, they mean a corporate entity tied to a public service goal, in this case the provision fo mortgage finance, with limitation on earnings.<br /><br />Now when you work that back through the grinder, I am not sure exactly what the exact mortgage model looks like.<br /><br />I would be shocked if there hasn't been some effort to put more detailed meat on those bare bones.<br /><br />Again, I'll see what the "community" I can reach says.Bill Malonihttps://www.blogger.com/profile/17459277100798719104noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-2312407188761073782014-02-21T19:05:52.677-08:002014-02-21T19:05:52.677-08:00Are there any "public utility" mortgage ...Are there any "public utility" mortgage models out there that that have demonstrated long term success? Other countries? This sounds like a socialist idea. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-60262966641182357822014-02-20T14:14:15.674-08:002014-02-20T14:14:15.674-08:00That's part of an answer, but if Uncle Sam goe...That's part of an answer, but if Uncle Sam goes that route, I assume the resulting operation would go "on budget, which would be the honest thing to do and a reflection of reality.<br /><br />Anything less would be subterfuge.<br /><br />And maybe, 10 or 15 years after that development, the Feds would free the two, which is kind of what happened, initially in 1970,<br />when the Congress "privatized" Roosevelt's Fannie Mae, created in 1939 as an "on budget" federal agency.Bill Malonihttps://www.blogger.com/profile/17459277100798719104noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-81637074384068392402014-02-20T12:55:32.849-08:002014-02-20T12:55:32.849-08:00"My understanding of "utility regulation..."My understanding of "utility regulation," generally involves some limits on the utility's revenue or earnings."<br /><br />Very true. FnF aren't a typical "public utility," they may have an "essential facility" that is important to the mortgage and real estate markets, they are somehow "affected with the public interest. They are a unique type of "private-public partnership," private capital capital but the gov't can step at times of systemic stress to the financial system. I think we'll end up with the GSEs as state-owned enterprises. The gov't can exercise their warrants, maintain control with an equity stake of 50% or more and recapitalize. Conservatorship wouldn't be needed at that point. wpofilmshttps://www.blogger.com/profile/05697253373382450873noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-70909578015430792052014-02-19T16:12:24.357-08:002014-02-19T16:12:24.357-08:00Good for you and I mean that sincerely.
My unders...Good for you and I mean that sincerely.<br /><br />My understanding of "utility regulation," generally involves some limits on the utility's revenue or earnings.<br /><br />That hasn't been the F&F case, although, in an ersatz once removed manner, preferred and common shareholders see their holdings rise and fall and that is somehow related to the entities financial performance and the level of ongoing confusion facing would be restructurers.<br /><br />We're in Plato's cave. Is that a real fire or just reflective shadows on the wall?<br /><br />***********************<br /><br />Prediction: We haven't heard the last from Gretchen Morgenson on the issue she raised in her column last Sunday.Bill Malonihttps://www.blogger.com/profile/17459277100798719104noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-84356230216369087362014-02-19T08:45:42.014-08:002014-02-19T08:45:42.014-08:00I'm working on a book on public utility regula...I'm working on a book on public utility regulation. FnF aren't really "public utilities" but have been regulated more-or-less like public utilities since 2008. And, FHFA now has the authority typical of a state public utility commission or FERC or FCC. It's not an exact match, but FnF have an "essential facility" that is important to capital formation in the mortgage markets. I've done a couple papers on this stuff, published in Electricity Journal rather than a possibly more relevant mortgage publication. At any rate, FnF has given me a "refreshed" perspective on a lot of standard public utility regulatory issues. wpofilmshttps://www.blogger.com/profile/05697253373382450873noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-719569161195480912014-02-17T15:36:07.856-08:002014-02-17T15:36:07.856-08:00Wayne--I am not sure how you would define "in...Wayne--I am not sure how you would define "independent"--and what it means in terms of policy--if you agree the agencies are guided by the hill and the industries--and companies--they regulate.<br /><br />Sadly, they are very much influenced by the industries they regulate, as well as the Hill (says someone who worked at two federal financial regulators, before going to Fannie, and spent 10 years closely watching OFHEO/FHFA) evolve. (See the Raines, Howard, Spencer law suits.)<br /><br />It's the nature of Washington and that saddens me, but it is the fact.<br /><br />(BTW, keep your eye on Richard Cordray at CFPB, who seems to have taken some strong "independent" stands and, with you, I hope he sticks to his guns.)<br /><br />Jonah Hill<br /><br />I can't comment on the other two Hill films and maybe I just was blown away by LD performance, but I thought Hill--as "Donnie Azarov"--pulled off a multifaceted role with great success. I saw about four different people with whom I grew up in his performance.<br /><br />Reportedly, JH only sought Hollywood minimum, $60K comp, to be in a Scorsese movie.Bill Malonihttps://www.blogger.com/profile/17459277100798719104noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-15597737971755138202014-02-17T14:20:24.615-08:002014-02-17T14:20:24.615-08:00I also want to mention that my fitness trainer thi...I also want to mention that my fitness trainer thinks that Jonah Hill is overrelated and that his Oscar nominations in Moneyball and Wolf of Wall Street are totally ridiculous. I agree to a certain extent. I'd probably go for Bruce Dern and Bradley Cooper myself. wpofilmshttps://www.blogger.com/profile/05697253373382450873noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-31287710825449214412014-02-17T12:01:26.624-08:002014-02-17T12:01:26.624-08:00. "Are you suggesting that regulatory agencie.... "Are you suggesting that regulatory agencies never give into political pressure from the parties which appoint them and to the industries they oversee?"<br /><br />No. Independent regulators are influenced by political pressure, which is fair enough given they must follow statutes set by the legislature, can be overturn by the courts, and are appointed by the executive branch. They are also influenced by the industries they oversee and by the customers of those industries, again that's fair enough and isn't inconsistent with the idea that they are independentwpofilmshttps://www.blogger.com/profile/05697253373382450873noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-79814254442252952912014-02-17T08:24:04.962-08:002014-02-17T08:24:04.962-08:00Wayne--Are you suggesting that regulatory agencies...Wayne--Are you suggesting that regulatory agencies never give into political pressure from the parties which appoint them and to the industries they oversee?<br /><br />If you are, that's what is fairly bizarre.<br /><br />But, please keep reading and commenting.<br /><br />*****************************<br /><br />Bryndon--And with the amount of money involved, it's likely a SCOTUS issue. The thought I exchanged with someone last night is would the Congress move--in any way--while the "big court" is considering the matter.<br /><br />****************************<br /><br />Anon--They still remains plenty of Americans--some of them social studies and civics teachers--who believe the little handout every congressional office offers, "How a Bill Becomes a Law," is stone cold the way the legislative process works.<br /><br />**************<br /><br />Combining reponses tot he last two "Anons," "Yes" on the NAR and yes, there is a far similar way to improve the nation's mortgage finance system, then C-W advocates suggest.Bill Malonihttps://www.blogger.com/profile/17459277100798719104noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-15488329258840453052014-02-17T08:20:59.978-08:002014-02-17T08:20:59.978-08:00"Not one reform advocate has yet to acknowled..."Not one reform advocate has yet to acknowledge the fact that the story of the GSEs were a huge success in saving the US economy from collapse. "<br /><br />Only partially correct. It was the Federal Reserve providing ultra low interest rates and buying MBS who saved it, among other things. But it is correct to say that the GSEs were the enablers behind. Lose the GSEs and the Federal Reserve will be without that structure. They are at the center of the liquidity flow.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-67974623702546237622014-02-17T06:59:49.179-08:002014-02-17T06:59:49.179-08:00Release the GSEs from conservatorship and require ...Release the GSEs from conservatorship and require them to maintain 5% reserves and send the same invitation to others so long as they universally enforce strict underwriting standards. We're trying to re-invent the wheel here with nonsense. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-41818888188230672932014-02-17T06:56:28.014-08:002014-02-17T06:56:28.014-08:00It is a very good sign that Mel Watt is reaching o...It is a very good sign that Mel Watt is reaching out to industry in trying to understand the big picture instead of drinking the KoolAid engineered by Paulson, Lockhart, Summers, Geithner... and the many others, all whom have moved on from their high level government positions. Their interest at heart, were not for what is best for the taxpayer, but what is best for their own self promotion. Just look at them now.<br /><br />If Obama were smart, he would assign Mel Watt to take an objective approach to the matter in understanding what exactly the problems are with the GSEs and how best to fix them. This step in reaching out demonstrates this might now be the case.<br /><br />As for reform, there is nothing but attempts to lead us into a dark hole of the unknown. Not one reform advocate has yet to acknowledge the fact that the story of the GSEs were a huge success in saving the US economy from collapse. Corker says the government was the hero while ignoring how a structure in place for decades, was able to go back to the basics of responsible loan underwriting. Not to mention the mess they had to clean up from private securitization market.<br /> <br />But as Ralph Nader said, the most important ally will be the National Association of Realtors, without their concurrence, nothing will happen, and nothing is a whole lot better than the garbage that has been proposed. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-57410645411414725222014-02-17T05:07:50.212-08:002014-02-17T05:07:50.212-08:00The suggestion that FHFA is not part of the govern...The suggestion that FHFA is not part of the government (and thus is at arm's length from the Treasury) is laughable, and if it ever had any merit, that argument is hurt by installation of a career politician.<br /><br />The logic there is comparable to me renaming myself George, stealing a car, and when arrested telling the judge that it wasn't me, it was George, while showing a license that says Mark. <br /><br />"It wasn't me! It was him!"<br /><br />That kind of low-level sleight of hand is easy for any judge to see through and it's pretty shocking that they are using that weak argument.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-67205209381325529342014-02-16T19:34:17.325-08:002014-02-16T19:34:17.325-08:00Dear Bill,
Thank you for your continued articles ...Dear Bill,<br /><br />Thank you for your continued articles and perspective on the plight of the GSE's, their current and former employees, and their shareholders.<br /><br />I, too, was shocked and delighted with Ms. Morgenson's NYT piece, and I feel we have finally turned the corner with the media bias against Fannie Mae and Freddie Mac. Not that she'll respond, but I wrote to her to thank her for her article.<br /><br />The future of these two entities seems as bright now as it ever has since they were placed (possibly, improperly) into conservatorship. But, our derivative case against the government will continue forward, nonetheless.<br /><br />Thank you, again, and cheers for your efforts.<br /><br />Best regards,<br />Bryndon Fisher<br />(USCFC Case # 1:13-cv-00608-MMS)Bryndon Fisherhttps://www.blogger.com/profile/01807109887834368702noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-6649524274298956582014-02-16T18:49:03.771-08:002014-02-16T18:49:03.771-08:00Fairly bizarre that Mr. Maloni doesn't realize...Fairly bizarre that Mr. Maloni doesn't realize that FHFA is an independent regulatory agency (not really part of the Administration) given what we saw from Acting Director DeMarco over the last few years. AD DeMarco did a decent job for the most part and was about as independent as any acting director could possibly be. wpofilmshttps://www.blogger.com/profile/05697253373382450873noreply@blogger.com