Hints and tips:
...They were down 24 per cent in September, according to the National Association of Realtors. Does it not make sense that a crash in prices would follow this crash in transactions?...
...In 1970, the US Government National Mortgage Association (known as Ginnie Mae) engineered the first “passthrough” mortgage-backed securities, where the underlying individual loan payments flowed directly...
...Existing home sales in July fell 5.9 per cent compared with the previous month and 20 per cent from a year ago, according to the National Association of Realtors....
...A report from the Mortgage Bankers’ Association on mortgage applications is also due for release....
...Separately, the National Association of Realtors is expected to report a decline in existing home sales to 4.7mn in September from 4.8mn in August as mortgage rates run at a 20-year and price would-be home...
...The first of these is that most mortgage market people do not believe it is possible to sell Fannie and Freddie mortgage-backed securities without a government “wrap”....
...(ii) such a property wealth tax would lead to inefficiency in investment behaviour....
...Fannie Mae, one of the US government-backed mortgage agencies, on Monday said Timothy Mayopoulos has decided to step down as its chief executive officer by the end of the year....
...For hedge funds with shares in the pair — including Perry Capital, Pershing Square and Fairholme Funds — the change proved disastrous....
...Investors including the hedge fund Perry Capital sued but two years later a judge dismissed the claims. On Tuesday, a federal appeals court in Washington ruled to uphold much of the earlier judgment....
...On Monday, the US Court of Federal Claims ruled in favour of Fairholme and Perry, ordering the government to hand over documents it had contended were privileged....
...Since the mortgage insurers were bailed out in 2008, some of the most renowned US investors — from John Paulson to Bill Ackman to Richard Perry — have piled into their shares and suffered mysterious losses...
...V....
...There are four main options: i) May’s deal, ii) another deal (eg. Norway for now), iii) no deal or iv) remain....
...Perry, a hedge fund led by founder Richard Perry, and Fairholme, an investment firm led by Bruce Berkowitz, own preferred shares in Fannie and Freddie, which guarantee US mortgages and invest in mortgage-backed...
...Its total share of new mortgages has risen to 71 per cent — if you include loans insured by the Federal Housing Administration — from about 32 per cent 10 years ago....
...Bill Ackman’s Pershing Square, Bruce Berkowitz’s Fairholme Funds and Richard Perry’s Perry Capital are among the investors to have sued the government over its treatment of the US mortgage companies....
...mortgage companies....
...David Blanchflower, Bruce V. Rauner professor, Dartmouth College Most unlikely....
...David Blanchflower, Bruce V. Rauner professor, Dartmouth College Open question. Depends if he injects a major fiscal stimulus....
...Pershing Square’s case and a similar lawsuit by Fairholme are still pending in the Court of Federal Claims....
...A case brought by Perry Capital and Fairholme Funds against the US government’s decision to keep nearly all profits generated by Fannie Mae and Freddie Mac –- rather than share them with investors – was...
...Paulson, Perry Capital, Owl Creek and Bill Ackman’s Pershing Square are among the funds to have bet on the common or preference shares of Fannie Mae and Freddie Mac, which fell sharply earlier this month...
...Fannie and Freddie guarantee a majority of mortgage lending in the US....
...Some free market proponents are on the same side as civil rights groups, such as the National Association for the Advancement of Colored People and the National Council of La Raza, in opposing the bill....
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