Sunday, January 28, 2018

Are some anti-GSEs folks whistling past the graveyard??

A few GSE voices

My longtime friendly adversary Peter Wallison—with whom I greatly disagree but don’t dislike—took to the pages of the Wall Street Journal a few days ago to express his fear of a “rogue” US Treasury somehow backing plans to keep Fannie and Freddie alive as shareholder own entities (either corporations or utilities), despite the fact that he, his AEI colleagues, banking industry and media allies, and congressional Republicans, have been opposing that possibility for the past generation.

Let’s root for his fears.

Most people will remember that PW’s core predicate was/is Fannie Mae bought and guaranteed only low quality subprime loans in the 1990’s ultimately causing the nation’s 2008 financial Armageddon.

Wallison relied on the “research” of Ed Pinto, who briefly worked at Fannie and then later joined Wallison at the American Enterprise Institute (AEI).

Ed’s early mistake, from which his work never recovered, was applying silly, some would say contaminated analyses to assail his former GSE employer, using his own exclusive definition of “subprime mortgages” that nobody else in the mortgage finance world agreed was accurate, except Ed and his sponsor Peter.

Peter, who knew better--insisted on blaming the GSEs for the 2008 financial meltdown, refusing to acknowledge the pre-2008 hugely contributing damage caused by the major commercial banks and investment banks, when, foolishly, they tried cloning the GSE’s business model, but forgot to adopt the GSE quality controls and superior underwriting standards.

In 2007-2008, the big banks created $2.7 Trillion in poorly constructed mortgage backed securities with low quality mortgage loans--used falsely inflated ratings—and sold most of those crappy bonds throughout the world, making the US domestic real estate softening an international problem.

Those private label securities (PLS)—bank-created outside the GSE systems--bled red ink in record frequency and velocity.

The ugly fact for Peter and Ed was that Fannie’s books of business throughout the 1990’s and into the next century were the best of any national lender/guarantor, with infinitesimal default rates.

Peter was a member of the President Obama’s Financial Crisis Inquiry Commission (and a dissenter to its final report) and Don Quixote-like tried to have the Commission staff embrace the Pinto work, which the Commission staff rejected as having no merit.

That did not stop PW or the Washington anti-GSE cabal from repeating that meme for years, through today.

Since his work still is being saluted by some, it still needs rebutted.

After reading his WSJ article, I told Peter that —while I loved to think he was accurate—I didn’t believe he had a lot to fear, certainly near term.

I don’t think there is yet a final Administration or Phillips or Mnuchin plan for the disposition of the GSEs and Treasury won’t embrace one until they have nothing on their agenda more important politically. Then Treasury will do what most works for President Trump regarding GSEs.

And to put an exclamation point on my opinion of Wallison’s and Pinto’s  work, the Federal Deposit insurance Corporation (FDIC) this week published it history of the 2008 financial debacle and sustained much of what Fannie and Freddie advocates and Peter’s critics have been saying, pointing causal fingers at the big banks and investment banks PLS machinations, not the GSEs.

And some other GSE voices

In addition to Peter Wallison, some other voices sound worried the GSE train might pass by their stops, leaving them stuck in their seats like poor “Charlie on the MTA” (Kingston Trio, 1959, kids look it up…..and shouldn’t someone better get them Milken boys a sandwich!)

The Mortgage Bankers Association, with its President David Stevens having announced his retirement for this September (or thereabouts) insisted Congress needs to act on GSE reform first thing when it returns for duty.

I guess David thinks F&F have a higher national importance before Congress considers a US budget, immigration/DACA issues, the Wall, infrastructure, or any other governmental priority, which, frankly, outshines “GSE reform,” since right this minute--which is the time frame on which Congress focuses--there is no real Fannie and Freddie operational problem.

Qualifying mortgage seekers, with decent credit and the down payment, can go to most any lender and get a Fannie or Freddie mortgage, i.e. a loan the GSEs will securitize.

David also increased his proboscis length when he declared in a later interview, the GSE legislation he hopes comes from Congress this year “will do no harm to Fannie and Freddie” (gag, yak, barf!). Really David, really??

Joining Mr. Stevens, who just may be angling for Congress to answer his pleas before he has to step down and abandon his quixotic “kill the GSEs” odyssey, is the Milken Institute.

That’s the same Milken Institute, which recently employed and paid the salary of Michael Bright now firmly ensconced at Ginnie Mae.

Michael (and former FHFA chief Ed DeMarco) desperately want Ginnie Mae--the Government National Mortgage Association--to once again be the successor to Fannie Mae, as it became when Fannie was kicked out of the government into the private sector in 1970.

However, Bright wants Ginnie to inherit all of the GSE non-government insured or conventional mortgage financing as per legislation he’s drafted for Senate Republicans.

Damn them details.

Mike and DeMarco ignore-- or hope congressional R’s doesn’t know--that Ginnie is a tiny full-fledged federal agency with no substantive/qualitative back office or senior analytic staff capable of underwriting, creating, and managing hundreds of billions of dollars in conventional mortgage backed securities and are five or more years away from being able to achieve that, if indeed Congress wants that mess. (Details, details, huh Mike and Ed?)

A check of the records will show, I think, today Ginnie still contracts with Freddie Mac to do some/much of its work. (Worth noting, that when it was created in 1970, from Fannie Mae’s federal government mission of securitizing FHA and VA mortgages only, Fannie continued to do all of Ginnie’s back office work until the late 1980’s.)

Nonetheless, the Milken Institute tabbed “four experts,” Michael A. Stegman, Phillip Swagel, Theodore W. Tozer, and Milken’s Erich Kaplan to encourage Congress to get on the case and hurry and euthanize Fannie and Freddie. The quartet’s work on a legislative future only looked at two statutory options (hey guys, how about examining just a slight variation of the GSE status quo or are they too viable?) the MBA proffered plan--which GSE rumor has it was written by Wells Fargo Bank)--and, surprise, surprise, the Mike Bright Milken approach.

Could any of this expressed concern (Wallison, Stevens, Milken) screen a turning of the GOP’s political fortunes and possible D majorities in the Senate or House after this year’s mid-term elections?

GSE value reading. While the Washington policy world no-nothings--Tim Howard, MrF, G. Buckman, and other smart people to the contrary—get rapturous over GSE risk-sharing securities (which don’t transfer any risk just juicy dividends), here’s another view.

Wallison redux

*(On Friday,1-26) when this blog was being drafted, Inside Mortgage Finance reported that friend Peter Wallison could be Trump-named to  succeed Mel Watt when the latter concludes his tenure at the Federal Housing Finance Agency (FHFA). If that happens, I’ll polish my resume, certain that Peter would want my sage like advice to assist him. Grumble, grumble, he’ll probably hire Eddie first.)

Reading the above caused GSE investigator/author David Fiderer to inquire, “Does this now mean Bernie Madoff can get named to head the Securities and Exchange Commission?”

Stay tuned fans!

President Donald J. Trump

I don’t know if I was too hard on the President in my last blog, “Stormy, etc.” but as I told somebody in an email, “Shame on any of us who fail to speak up when we see behavior or events which violate our sense of community, civility, propriety, morality, or principle.

So many of DJT’s first year presidential actions crossed those lines for me that I can’t always keep quiet. Don’t invite me to your cocktail party unless you want to hear the same riffs.

But in fairness--for blog consumers--I will try just to focus on what’s observable to them and hope that readers who don’t agree with me, initially, might see my side, after reading my proofs or explanations.

Robert Mueller’s Investigation

(Before I add my two cents worth about the Special Counsel’s work--for those who think I am just an angry Democrat attacking Republicans wherever I find them--I’d like to offer what for me and the nation would be a wicked good GOP presidential ticket in 2020…..Robert Mueller and Ohio Governor John Kasich, two truth-tellers and honest guys; wouldn’t they be refreshing??)


Against a backdrop of bipartisan congressional and media outrage at the possibility that a foreign nation and historic pest had tampered with 2016 presidential election, the Trump Administration reluctantly responded and took action.

It’s crucial for people to remember that the Robert Mueller inquiry—which came about after Trump’s AG Jeff Sessions recused himself from investigating possible Russian interference, since Sessions was part of the Trump campaign —began when DoJ Deputy Attorney General Rod Rosenstein last May chose Bob Mueller, former head of the FBI, as a Special Prosecutor to investigate Russian collusion and related matters.

All those decisions were made by Republican officials from the President down through Justice, with Mueller himself having a sterling military, civic, and political GOP record.

After ten months and—mostly in the House--GOP Lilliputians wailing about unfair investigations, foot dragging, partisan complaints, conducting guerrilla warfare, the Mueller effort, now, seems reduced to three lines of inquiry.

--Was there Russian interference in the Trump election?

--Was there possible significant international money laundering through a variety of Trump or other business operations, about which DJT knew?

--And was there White House/Trump obstruction of justice actions, involving various firings and presidential misstatements, i.e. lies from Trump and his associates which could rise to impeachable offenses depending on the objectives of the fabricators/dissemblers?

It’s public record that Donald Trump and his family have lusted to do business in Russia and with Russians, beyond selling Russian individuals expensive properties in Trump Florida real estate holdings and other US locations.

The big Trump income return, beyond Russians buying his tchotchkes, is the family’s hope to begin major business development (ski resorts, health clubs, office buildings) in the former Soviet Union, which has a history of the government/political elite skimming a share of any investment and revenue from businesses, no matter the owner.

When people consider “money laundering,” think of what one of the Trump sons—was it “Uday” or “Cousay” (I know, Don. Jr. and Eric, who just remind me of the out of control Hussein brothers) –recently said when appearing on, surprise, Fox News: “My dad only cares about one color, green.”

That was the kid’s defense against calls that his father was a racist, but it also might explain the role of Trump Inc.—where both older sons now earn their “rice bowls” (it’s their sister and brother-in-law who are the federal employees)--which might have accepted hundreds of millions of dollars from Russian and other murky overseas sources looking to both “invest” but also launder Illegal and other dirty money.

I’ll let you decide if the all of the WH/Trump Admin personnel actions and tweets—fights with the FBI and US intelligence sources--represent any form of “obstruction” or interference with Mueller’s objectives??

“Collusion”—where most people see the hand of Russia’s Vladimir Putin and his intelligence/security forces trying to manipulate Trump and his team, utilize US social media to influence the election, hack into personal and institutional accounts, and then distribute the contents—is one item President Trump likes to offer up (paraphrasing), “There was no collusion. If there is no collusion, there is no reason for the Mueller investigation.”

That’s wrong Mr. President as suggested by the three investigatory matters identified.

If any one of the tripod issues gets supported by the Special Prosecutor’s work—that would cost the President both support from the American people and maybe, if the grievances are dire enough, your job.

Let Robert Mueller complete his work and don’t interfere. If you are innocent, you have nothing to fear and everything to gain.

I’ll close this week saying it appears to me the American people are wising up to the Trump con and the fact he’s a legendary “financial, deal making, genius” only in his own mind.

The American people deserve much better and Donald Trump needs to be more faithful to his day job if he hopes to survive his term in the White House.

We’ll see if President Trump's Tuesday’s State of the Union address offers those hopes or will be more of the same, “Look at me, I’m great.”

Maloni, 1-28-2018

Sunday, January 21, 2018

"Oh Stormy, oh Stormy, bring back our sunny days.....!"

Are there positive GSE times afoot??
Not sure, I’ll believe that when I see it

Mel Watt, Director of the Federal Housing Finance Agency (FHFA), the GSEs titular regulator (although most of the real power/direction/clout comes from the US Treasury) sent a dramatic letter to the Senate Banking Committee last Wednesday, endorsing a set of GSE reforms that sound very close to the Moellis (pronounced “MOLE-us”) plan and which—as the GSE scuttlebutt goes—will be reflected in the February debut of Corker-Warner 2.0 GSE legislation.

(Admin Bullshit alert!)

But, in the stop, go, red light, green light, confusing DC GSE world—when investors were hoping to hear a stunning full throated endorsement of Watt’s letter suggesting some collaboration--Treasury’s Craig Phillips spoke to Thursday to DC’s ‘Women in Housing Finance, generally endorsed some of Watt’s (surprising) recommendations, then added the standard gag producing convention, “But we want the Congress to pass meaningful reform, blah, blah, blah.”

For GSE supporters, Phillips really didn’t walk the walk and may not have even talked the talk.

Phillips absence of certainty, F&F praise, and other caveats were music to DC’s anti-GSE ears.

Those folks have no appreciation for Fannie and Freddie operations, their history, their post-Conservatorship success and current productivity (the two of them, handcuffed by the federal overseers, still are holding up the US mortgage market, which relies on the GSE underwriting standards to fend off big bank mortgage aberrance).

Few, if any,  Fannie/Freddie positives come from the Hill R’s, just the pols unexplained lust to screw over the GSEs and give the nation’s big banks even more power over mortgage markets and consumers.

Shortly after Phillips spoke, “Hill sources” (read behemoth banks and their sycophants) began dampening any hope over Watt’s letter and spinning “future Senate bills will put Fannie and Freddie in “receivership” and went medieval on the GSEs in a dozen different ways (but did not spank them with a Forbes Magazine”).

It’s times like this when I wish I could ask each Senate Banking Committee member exactly what it is about the GSEs they dislike (knowing that most of their concerns are folly and easily rebutted) and why they think anything they can conjure legislatively—once they put Uncle Sam on the hook for financial losses, as most of the new proposals do—is a dramatic, watershed improvement over exactly what Fannie and Freddie provide the nation now cheaper and more efficiently than the big banks??

(No fair using logic and rationality, Maloni!)

When you consider any federal legislation—especially one with lots of moving parts that massively uproots US mortgage markets--you have to crank in the inevitable drafting and implementation screw ups; the predictable greed as the financial buzzards seek parts of the GSE carcasses; the new rules, new players, chaos and uncertainty with anything Washington touches; plus giving the big banks even more market control—which they don’t merit or deserve—you wonder how thoughtful people can do that to a $10 Trillion market tranche of our economy?

The answer is most are not thoughtful or knowledgeable.

(In case anyone missed it the Fed has named a new financial regulatory czar to do away with all of those banks and regulations governing the banking world that it believes produce too much caution and consumer concerns.)

I also have to remind those who believe that thrusting the GSEs into “receivership” is the answer, ignore the fact that Administrations and Treasury Secretaries change, along with their policies.

If this GOP crew in both congressional chambers and the White House believe investors will flock to whatever their new mortgage guarantors are that replace Fannie and Freddie, the precedent of Trump stealing the capital and assets of the GSEs will dampen that enthusiasm if not scare the money guys far away.

I continue to believe this mid-term election year, when with all of the other craziness which can be put at the feet of President Trump and his Administration, is not the ideal time to try and euthanize the GSEs—especially when there is a $100 Billion in GSE warrant monetization or more there for Treasury’s taking if it chooses to keep the GSEs alive, even as privately owned utilities.

One last comment is that I don’t think Secretary Mnuchin knows what GSE things he wants to do or endorse, beyond the “happy talk” about working with the Hill.

If the Hill fails to enact legislation—as I suspect it will—then it’s up to him to do something or just further kick this mortgage can down the road.

Trump the SPP?

Even before the Stormy Daniels affair broke into the news, big time, at midweek, I was thinking how much Donald Trump’s presidential actions remind me of the celebrated “Swedish Penis Pump” (SPP).

Let’s see how far I can take my analogy?

Like the SPP, when confronted with opportunity, the agitated POTUS demands attention, gets red-faced, inflates himself above normal size, girds for a vigorous assault on whatever is in front of him, and then retires only to repeat the same operation the next time he is challenged.

(Note, none of this is a comment on DJT’s virility, hand size, or use of an SPP, just comparison of the SPP’s operational activation and Trump’s dealing with personal criticisms or perceived ego threats.)

I am sure you’ll tell me how close my comparison is or where I am off?

The Maloni Idea

Thanks to several of you who reached out to laud my suggestion of –someone—reviving the old report which Fannie Mae used to publish quarterly showing all of the mortgage finance activity (since and multifamily) in every congressional district and state in the nation.

I argued it would help Congress understand better what the GSEs do and see firsthand how much mortgage finance business they do “back home,” which is the piece of the nation all Senators and Member of Congress care about first.

The good news is that efforts have been made to find and implement the information—which can’t be done as easily or frequently as Fannie once did—but it can be done.

Stormy Daniels

OK, I know few of "the Donald's" tweet buddies will believe the a story, which first broke big in the Wall Street Journal, that 10 years ago, “Stormy Daniels”—an adult film star-- had a brief affair with Donald Trump (am I the only one who thinks Stormy looks “mannish”?) just months after Melania Trump, his third wife, gave birth to their son Barron?

Or maybe, they just won't care, remembering Candidate's Trump boast that he could shoot someone in the middle of New York City and not be blamed.

The WSJ story continues that one of Trump’s regular fix-it lawyers made a $130,000 payment to Ms. Daniels just a month before the 2016 presidential election to keep Stormy from going public with the sordid matter and possibly costing DJT the election.

Trump's self-admitted horniness and wanton pursuit of women—which he displayed during his adult life and which he bragged about before he decided to seek office-- is so Donald, including using his personal lawyer to hush the embarrassment (an MO he’s used all of his professional career) and then to deny everything that the Journal and now other media are writing (don’t miss the Forbes magazine spanking session).

(Publish the Steele dossier, publish the Stele dossier.)

I wonder what Melania thinks of her husband’s proclivities, but of course Sarah “Biscuit” Sanders told us that DJT never said, “Grab them by the P----!”

Oh, "Biscuit" also said Trump didn’t say “Shit Hole countries.” And, if you don’t believe her, ask Senators Tom Cotton (R-Ark.) and David Perdue (R-Ga.).

The GOP—hoping to ignore that it controls all three government units (not to mention the courts)--can try to call this weekend’s federal government shutdown whatever it wants, but the “Spanking Stormy Shutdown” has a nice ring to me because of the timing coincidence.

Our POTUS; the man who would be King

Lots of one year reviews of President Trump first 12 months in office. I won’t try to do that, but I will ask—for the doubters out there—can you remember any 12 month period in our history—save when we were involved in world wars--when living in the United States has featured more hostile, chaotic, unnerving, wracked by more presidential attacks on US institutions (FBI, CIA, science, race relations, immigration, his own political party etc. etc.) as well overseas friends and allies?

It seems clear to me—from his autocratic complaints—about our legal system, Congress, cultural and civic history, DJT would like to change so very much and laments his criticism doesn’t make it so. He seeks the power of kings or emperors and can't understand why its not his.

He generates quarrels and rows, perpetuates them, and then walks away looking for others to blame. I am sure he will be a Tweet-machine during the “shutdown,” scapegoating, and raising specious issues to hide his own "negotiating with jello" responsibility.

You cannot separate President Donald Trump from any malaise associated with these matters, plus dozens of others. Did I mention Healthcare, Russia, North Korea, genial comments about Neo-Nazis, racial/ethnic putdowns, and policy by tweets??

No, Trump is not a good politician, not well read, with little understanding of our country’s Constitution, history, and—apparently—not an effective political deal maker, no matter how much he praises himself.

He has fostered an unhealthy situation and as a nation we will suffer from his obstreperous nature and efforts to tear away any vestige of his immediate predecessor...

I believe our best hope is to vote out as many of Trump’s congressional acolytes as we can and hope we can halt some of the more destructive actions when he and his congressional posse soon try and destroy our Social Security, Medicare and other people programs—in the name of federal savings--to pay for his tax giveaways and infrastructure and military deficit spending.

Maloni, 1-21-2018

Thursday, January 11, 2018

I have an idea; it’s an old one, but a good one……..


GSE Relief: 
Could reviving this prohibited report get F & F some love, making them more desired, supported on the Hill??

"Congress needs reasons to want to keep Fannie Mae and Freddie Mac around and working…"

Fannie and Freddie always are on my mind.

Regularly, I consider schemes to reduce the height and depth of what I call the “DC GSE shit wall (SW),” the virulent sustained opposition which allows their commercial and ideological enemies to keep the GSEs in government bondage while perpetuating lies which allow many in Congress, when asked, to hide and/or deflect and prattle, “But, didn’t Fannie and Freddie… (fill in your favorite F&F mortgage history accusation or other fabricated  business sin).”


Major Aside: No federal office holder in the category above is more egregious than Sen. Bob Corker (R-Tenn.), the stock market playing, Wheeling and dealing former Chattanooga Mayor—who, as a presumably working US Senator, reportedly made numerous equity trades per day—and somehow (with the help of his friends, many of which had business before his Senate Banking Committee) went from “bigly” in debt to having net worth touching $100 Million (or more)??

Corker and his wingman Sen. Mark Warner regularly talk GSE crap and few people push back with any intensity and challenge their dismissive Fannie and Freddie perspective.

Hopefully and literally, Corker’s day in court should be coming. If he savaged the GSEs for personal financial reward—as some sources claim--he should face a special kind of Hell, as should anyone else in Congress who did the same. 

Back to my plans dispersing myopic GSE fog from DC.

F&F congressional doubt and opposition wasn’t always the way and--while it won’t be easy to dismantle that “GSE SW”—I think it is possible to plant the seeds to reverse some of the current misdirected hysteria.

Long ago, with a creative and spirited effort, Fannie Mae helped produce just the opposite, a first rate company reputation inside DC and on Capitol Hill. 

Most in Congress didn’t then—and don’t today--understand mortgages or care about Fannie and Freddie.

When they do display anything--because of the SW-- it’s more a smite and burn mindset. Most Hill types can’t give you a good explanation for their opinion, but they’ll give you a reason, something like….”But they’re Fannie and Freddie!”

However when I F&F dream, it’s about what possibly can become  GSE-ameliorating, rejuvenating, or even restorative, since a top end GSE cheer leading campaign--conducted by the Treasury with the support of this White House--likely won’t happen?

What would it take to start a congressional enlightenment? 

Pointed but simple education

As former Fannie Mae CEOs used to remind us, “With Fannie’s federal business charter and behind the scenes function, we need to give Congress both reasons to support us and want Fannie Mae (and Freddie Mac) around.”

With my GSE magic wand, I would return to those days when the GSEs would supply every Member of Congress and Senator with a simple schematic of how the primary and secondary mortgage markets work, and the respective roles played by borrowers, lenders, the GSEs, and mortgage investors. 

The statement also would report exclusively on the one piece of US geography every Senator and Member cares about—no matter their political persuasion--GSE business activity in their state or congressional district, i.e. delivering the goods or the bacon (in reality mortgage loans).

Give everyone in Congress an easy to read and understand graphically pleasing report showing in simple terms how much and what kind of mortgage business the GSEs are doing in their states and congressional districts.

Why go through all of these informational hoops?

As noted, Congress needs a selfish, parochial reason to want to keep the GSEs around and this self-explanatory information could be just that. 

It would show these Hill “jamokes” (Steve Bannon word?) just how much business the GSEs do “back home” and how their voters—not just home buyers--rely on Fannie and Freddie for mortgage finance help.

Most can’t see any evidence of Fannie o Freddie as part of their own congressional fabric, but it exists and in volume.

Admittedly when Fannie did this 15 years ago, they had larger portfolios and more loans ($$$) to display, but their combined $5 Trillion, today, in (largely) mortgage backed securities still gives them some market heft to display.

Fannie and Freddie don’t have far flung offices and employees in every state to pitch politicians on their value and good company citizenship. The GSEs are “wholesalers”—with mortgage lenders not individuals for customers--but their underwriting rules impact retail (primary market) lending and American consumers. 

The GSEs are obscure 

They have weird jokey nicknames and few people—even some in the business—know exactly how they operate, yet even with their federal handcuffs the GSEs still finance half or more of all the nation’s conventional mortgage loans (those not otherwise insured or guaranteed by the federal government) and therefore provide mortgage credit to families in every single congressional district or state. 

I think the resurrection of that regular business report would provide a local context regarding the GSEs value back home. It would allow elected public officials (federal, local and state) to see in their backyards where GSE financing occurs and how voluminous it is.

A little cognitive extrapolation, which GSE allies can provide and deliver since the GSEs can’t, would allow those community stakeholders to grasp firsthand how much Fannie and Freddie’s active financing means to their constituents, local lenders, Realtors, builders, and constituents whose jobs rely on the GSEs which finance half the conventional loans in the nation.

That GSE business activity suggests a lot of Fannie-Freddie driven local money and a lots of related jobs which most people never comprehend when thinking “Fannie and Freddie.”

Sounds small, but—trust me—I believe it’s a major first step in allowing politicians to see the GSEs in a different and more positive light ( probably that’s why Treasury/FHFA bans it).  

Obstacles to/for the “Maloni plan”

It's verboten!

FHFA/Treasury won’t let the GSEs share their information in that manner, because they claim it’s “lobbying,” which was banned in the 2008 Conservatorship action.

To this non-lawyer, depending on the day of the week or the institutional federal mood swings, some in government/on the Hill contend the GSEs are part of the federal establishment or they are not.

If they are, isn’t their business information owned by the taxpayers and don’t they and their elected congressional representatives have a right to see it???

Or maybe, getting it requires a Freedom of Information Act lawsuit to make available what Fannie Mae, in my era, once published every 90 days to allow people and policy makers to see/understand what the GSEs were producing “back home.”

Exactly what is the harm in that, what damage could it cause except to big bank marketing campaigns?

Whatever it takes, I think it would be the single most effective tool—short of the Treasury and the WH becoming major GSE advocates (ain’t gonna happen)—to clear the air of the many untruths that their opponents have used to turn Congress against Fannie and Freddie.

Let me repeat, the Congress needs a reason to support the GSEs and want to keep Fannie and Freddie around producing fair and consistent mortgage financing for American consumers (and also stiff-arming the big US banks and their allies).

That type of report represents a major first step in giving people who don’t know or understand the GSEs a reason to do both.

Accurate GSE information is very scary for their detractors

A renewal of the former practice—whether by their allies going to court to make it permissible-- would do more to help generally uninformed Senators and Members learn not only what the GSEs do, but what could/would be lost ”back home,” if they vote for the commercial euthanasia being plotted by Corker-Warner and their fellow travelers.

With that foundation of information, constituents and others could query their Senators and Congressmen/women, I then would ask them, “What is it you most fear with perpetuating Fannie and Freddie as shareholder owned entities (even in utility form)?”

The congressional inquisitors could point them to current GSE regulation—which is excessive-- but prohibits the GSEs from ever trafficking in subprime mortgage loans, a major source of the real estate mess 9 years ago.

(I would encourage these asking the question not to smirk when so many of them and their assistants admit, “I didn’t know that?”)

And, “yes,” dear reader, it is “all about the money” as well as who/what controls the secondary mortgage market, since the primary mortgage market already is largely bank-dominated.

Having solved that problem—in my next blog--I would then turn to that Trump dude so accurately and honestly profiled in Michael Wolff’s Fire and Fury?

Maloni, 1-11-2018

Go Steelers 

(I want one more Super Bowl win before I
go to the big mortgage trading desk in the sky.)