Community Lenders Request Portion of GSE Profits from Treasury to Create ‘Cash Window’

first_img April 10, 2015 965 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Community Home Lenders Association Department of Treasury FHFA GSE Profits Jack Lew Community Lenders Request Portion of GSE Profits from Treasury to Create ‘Cash Window’ The Community Home Lenders Association (CHLA) has written a letter to U.S. Department of Treasury Secretary Jack Lew requesting that a portion of Fannie Mae and Freddie Mac profits be set aside for later use by small-and mid-sized lenders.CHLA asked for the funds contributed by the GSEs under the FHFA/Treasury Preferred Stock Purchase Agreement to be placed in a Capitalization Reserve Account, “for later use as needed for capitalization of a cash window for smaller mortgage lenders under housing finance reform.”The step of setting aside a portion of GSE profits for capitalization of a cash window would achieve the goal of reducing taxpayer risk through risk sharing while preserving full small lender access, according to the letter. CHLA first addressed the subject last year in a letter to FHFA last July.The letter CHLA wrote to Lew, dated April 9, cited bipartisan legislation approved by the Senate Banking Committee (S. 1217). Section 315 of the bill authorized the creation of a Small Lender Mutual in order to meet the cash window needs of small- and medium-sized loan originators.”Debate on Congressional reform of the Enterprises established that there are a significant number of mortgage lenders that believe that it is critical under any housing reform to have a fully capitalized cash window, capable of fully meeting all the market needs of ALL small and mid-sized lenders on fully competitive rates and terms. These lenders have a legitimate question in asking where the funds to capitalize a cash window will come from – if not from Enterprise profits that are otherwise now just going to Treasury.”GSE profits have been the subject of several lawsuits by investors in the last two years. All GSE profits since 2012 have been swept into Treasury, a practice investors say is unconstitutional and leaves shareholders shortchanged. Fannie Mae and Freddie Mac required a combined $188 billion bailout in 2008, after which they were taken into conservatorship by FHFA.The subject of the FHFA’s conservatorship of Fannie Mae and Freddie Mac remains a hot one and a much debated one in the housing industry. One of the reasons for concerns among stakeholders is that GSE profits fell from a combined $135 billion in 2013 down to $22 billion in 2014, and Fannie Mae and Freddie Mac cannot legally accumulate a financial cushion to absorb future losses – they must pay a dividend to Treasury each quarter equal to the excess of their net worth over an applicable capital reserve amount. That capital buffer is currently $1.8 billion and is required to be reduced by $600 million per year until it reaches zero by 2018. Should the GSEs’ losses exceed their capital buffer, they would require another draw on Treasury.”Regardless of the ultimate resolution, we grow increasingly concerned that one of the most obvious sources of capitalization for such a Cash Window – payments under the PSPA – continue without any action to set aside a portion of these payments in reserve for this purpose,” CHLA wrote in the letter to Lew. “To date, the Enterprises have repaid the Treasury advance plus tens of billions of dollars more – but none of those funds will be available in the future for this critical purpose, without a change like the one we recommend.”A copy of the letter was also sent to FHFA Director Mel Watt. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Nomura, FHFA Present Closing Arguments in MBS Trial Next: Lambert Announces Departure from Treasury’s Making Home Affordable Program Home / Daily Dose / Community Lenders Request Portion of GSE Profits from Treasury to Create ‘Cash Window’ About Author: Brian Honeacenter_img Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Community Home Lenders Association Department of Treasury FHFA GSE Profits Jack Lew 2015-04-10 Brian Honea Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago Share Save Subscribelast_img read more

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Time-out: IDX halts trading as shares plunge 5%

first_imgThe bourse halts stock trading for 30 minutes if its main gauge falls more than 5 percent. If the index falls more than 10 percent after the first suspension is lifted, the bourse will halt trading for another 30 minutes, according to a new IDX policy issued on Tuesday in light of the market rout.Trading will be stopped for the whole session if the JCI continues to fall further than 15 percent. The suspension can last for more than one day with the approval or instruction of the Financial Services Authority (OJK).Employees pass near the screen of stock movements in the Indonesia Stock Exchange building, Jakarta, Monday (2/3/2019). (Antara/Galih Pradipta)The decline follows an already steep Asian stock market drop. Japan tumbled 4.4 percent, a three-year low level, Australia nosedived to three-year low 7.4 percent, Seoul fell 4.8 percent to 4.5-year low. The MSCI’s broadest index of Asia-Pacific shares outside Japan fell 4.7 percent. The government unveiled a Rp 10.3 trillion (US$717.87 million) fiscal stimulus package to support the tourism industry and boost consumer spending to counter the economic impact of the coronavirus outbreak. A second stimulus package is underway.Bank Indonesia has recorded a foreign outflow of about Rp 31.76 trillion (US$2.19 billion) worth of government bonds and Rp 4.87 trillion worth of stocks so far this year as foreign investors flock to safe-haven assets such as the United States’ 10-year Treasury Note.Topics : Stock trading on the Indonesia Stock Exchange (IDX) was suspended on Thursday at 3:33 p.m. as the nation’s chief stock index nosedived by more than 5 percent amid a worldwide market rout following the World Health Organization’s (WHO) designation of COVID-19 as a pandemic.The Jakarta Composite Index (JCI), the main gauge of the local stock exchange, tumbled 5 percent to 4,895, a level unseen in almost four years, bringing the year-to-date (ytd) decline of the index to more than 21 percent. The drop makes for a bear market, which is defined by a drop in share prices of more than 20 percent from a recent high.“Stocks have been halted for 30 minutes, but because this has occurred 30 minutes prior to the close of trading, trading is technically closed now. Today has closed; it’s all done,” said Fakhri Hilmi, deputy commissioner for capital market supervision at the Financial Services Authority (OJK).center_img Euro Stoxx 50 futures plunged 8.3 percent to their lowest levels since mid 2016, following the US’ S&P 500 4.89 percent fall, nearing bear market territory. The Dow Jones yesterday plunged 5.9 percent to 23,553 on Wednesday, marking a bear market.“Emotional factors still dominate for the time being,” CSA Institute analyst Aria Santoso said on Feb. 29, just as the stock market began volatile movements. “The government stimulus program takes time for investors to comprehend as worries and panic continue to cloud the market and investors do not think logically.”Read also: Disappearing act: Market braces for volatile March after $2.4b vanishes in a weeklast_img read more

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City fans unhappy at Mancini exit

first_img The Italian had considerable support in the stands and that was evident at the FA Cup final at Wembley on Saturday when, amid rumours over his future, his name was chanted regularly. Mancini ended the club’s 35-year trophy drought by overseeing their 2011 FA Cup success and bettered that by winning a first top-flight title in 44 years last season. That the news of Mancini’s departure broke on the anniversary of last year’s dramatic Premier League title success added to the gloom. Kevin Parker, general secretary of the Manchester City Supporters Club, said: “After the weekend I think we were all expecting it to happen but I think we are all a bit disappointed it happened yesterday of all days – the anniversary of when we won the Premier League.” The sacking of manager Roberto Mancini has been met with widespread dismay by Manchester City fans. Parker added: “All those fantastic memories we have of May 13, 2012 – that date is a special date for City fans and that’s been a little bit tarnished. We’re definitely all disappointed.” A statement from the club said that Mancini had been relieved of his duties for failing to achieve the season’s “stated targets”. Parker said: “It is unbelievable. The club have said the targets set haven’t been met, but finishing second in the Premier League and losing finalists in the FA Cup would suggest those targets might have been unachievable. Does that mean we had to win the Premier League and win the FA Cup? I’m not sure.” The club’s statement also referred to a “need to develop a holistic approach to all aspects of football at the club”. Parker feels this could be a reference to various reports of disunity within the dressing room during Mancini’s tenure. This season alone Mancini has attracted criticism for seemingly unnecessary comments about Joe Hart, Micah Richards and Vincent Kompany while the many incidents involving the now sold Mario Balotelli were a patience-draining distraction. Parker said: “I think it seems clear – whilst they might not be happy with what’s happened on the field – there are other bits and pieces off the field that we as fans don’t get to know about. This reference to an ‘holistic approach’, there is probably a message in there somewhere. I think they are looking for peace, harmony and happiness in the camp. “That would suggest that under Roberto that isn’t the case. We all hear rumours and hear stories about it not being a particularly happy camp. But as fans our interest is a successful football team, success and trophies, and under Roberto that is what we got. Of course we are disappointed we have not won a trophy this season but in the eyes of City fans, that is not failure.” center_img Press Associationlast_img read more

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Daytona 500 2019: NASCAR reportedly not planning changes despite lackluster Speedweeks races

first_imgThe action wasn’t exactly back and forth at Daytona’s Speedweeks, but NASCAR isn’t planning on making any changes to increase excitement for Sunday’s race.There were a total of 10 lead changes across 179 laps this week at The Clash and two Daytona Duels on Thursday, but it will be tough for NASCAR to do anything significant to alter the single-file racing that was featured across the runs, according to NBC Sports. Richard Petty was blunt when asked if he thought qualifying was entertaining at Daytona this week.“No, I don’t,” he said.Since last year’s Daytona 500, races at restrictor-plate tracks haven’t featured as much non-stop action as years past. That was only compounded at Thursday’s duels as 38 of 40 drivers had already qualified for Sunday’s race.But, Tony Stewart had a different opinion while also trying to put the Thursday races into a different context.“The worst thing you want to do is put yourself in a bad position to have to bring a backup car,” Stewart, owner of Stewart-Hass Racing said. “Guys are a lot more careful. But we saw guys like Chase Elliott (and) Daniel Suarez that were trying moves by themselves (in the qualifying races). That’s something you typically don’t see a lot of, where guys can move and pass by themselves. “I thought that was encouraging to see you’re not having to rely necessarily on a whole pack of cars to help you move through the field.” Roger Penske was similarly optimistic about the possibility of increased action Sunday.“The racing will be certainly better on race day than maybe you saw (Thursday) night,” he said. “Cars are trying to get up last night to the front and draft. From a show perspective, I think you’re going to have a blanket over the cars that can win.”The Daytona 500 can be seen at 2:30 p.m. ET Sunday on Fox.last_img read more

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