I look forward to you shutting up and eating your words and perhaps being let go, because your perpetuation of nonsensical nationalization propaganda is baseless expropriation of private property. You have chosen the wrong battle with the wrong foe. I do not negotiate with terrorists, of which you are a lousy one at best.
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| Dave Stevens Flip Flops |
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| March 25, 2015
Yesterday, Investors Unite reported on an appearance by Dave Stevens on CNBC in which he noted the lack of capital reserves at Fannie and Freddie and the huge role that these companies still play in housing finance, despite their current state of limbo. Here’s a link to the CNBC clip. |
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| Investors Unite has been talking about capital for some time now. Earlier this month, Tim Pagliara submitted a piece to the Hill.com which pointed out that the Third Amendment Sweep had undercapitalized Fannie and Freddie and put the taxpayer at risk.
That’s why we are so enthusiastic to see Dave Stevens joining the chorus of voices who are expressing concerns about Fannie and Freddie being undercapitalized and locked in conservatorship, especially given that more than 60 percent of mortgages in this country are still secured by these two companies. But, after we posted our story, we received this email from a Vice President at the Mortgage Bankers Association, where Dave Stevens serves as President. |
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| Date: Tue, Mar 24, 2015 at 4:50 PM Subject: Your Blog Post on David Stevens’ CNBC Appearance To: “info@investorsunite.org” <info@investorsunite.org> Investors Unite: Today’s blog post takes Dave Stevens’ remarks on CNBC out of context and twists them to make it appear that he supports your agenda to recapitalize the GSEs and allow them to once again distort the mortgage marketplace. You know full well that Mr. Stevens does not share your view, and to portray him as some sort of convert or supporter of your cause is cynical and dishonest. We would respectfully request that you amend your blog post to reflect the fact that Mr. Stevens does not support your agenda, or better yet, delete the post altogether. I look forward to your response. |
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| Perhaps the Mortgage Bankers Association didn’t watch the CNBC segment of Dave Stevens talking about capital. If not, we encourage him to do so.
Ultimately, Dave Stevens has the right to backtrack or revise his comments. But why would he? Stevens is the President of the Mortgage Bankers Association. Why wouldn’t he be for re-capitalizing Fannie and Freddie as a way to safeguard affordable housing for all Americans? Fannie and Freddie are securing 60% of the mortgages in this country; wouldn’t Dave Steven’s own members support more mortgage availability in this country? If he’s not representing them, who is he representing? |
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To find more Investor Unite blogs click here. |
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| About Investors Unite: Formed by Tennessee activist investor and CapWealth Advisors Chairman and CEO, Tim Pagliara, Investors Unite (www.investorsunite.org) is a coalition of private investors from all walks of life, committed to the preservation of shareholder rights for all invested in Fannie Mae and Freddie Mac. The coalition works to educate shareholders and lawmakers on the importance of adopting GSE reform that fully respects the legal rights of Fannie Mae and Freddie Mac shareholders and offers full restitution on investments. | |
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Even Dave Stevens is Talking about Capital!
– March 24, 2015
Recently, we’ve noted that more people are talking about capital reserves – or more precisely the lack thereof – at Fannie and Freddie.
Now we can add Mortgage Bankers Association President Dave Stevens to that chorus. In an interview on CNBC today, he acknowledged that the state of limbo for Fannie Mae and Freddie Mac is a problem. Referring to the conservatorship and the lack of action for a successor framework for Fannie and Freddie, he said:
“Under the existing agreements, they will wind down their capital to zero. So we have trillions of dollars of exposure, no capital on the balance sheet and two entities that really, literally finance the vast majority of America’s housing.”
Stevens acknowledged that Fannie’s and Freddie’s epic profits of recent quarters were one-time events and characterized the GSEs as returning to “more normalized” earnings.
“But that’s certainly not sustainable for two companies that have virtually no capital and are dependent, ultimately, on these lines of credit that Treasury holds,” he said.
As we’ve been saying for months, the Third Amendment sweep exposes the taxpayer to another bailout, shortchanges investors and undermines the rule of law. It is good to see the message getting through.