What’s up with this Blog!?

March 18, 2017

I started this blog in November 2014 as a result of writing my first blog post — “You Can’t Handle the Truth!”  I actually wrote that piece without the desire to start a blog. I had been reading and participating on the timhoward717 blog up until that point, but the piece I wrote was too big to post there (admittedly it is a bit long).

I started this blog mainly to post that piece, but one thing led to another and now have exceeded 200 posts. Granted, some of those posts are frivolous (music videos, song lyrics, etc.). However, some posts required intense research and took several hours to write…many consumed an entire weekend…

About the Blog

Why did you write so many blog posts?  At the time, the truth needed to be told.

Why have you slowed down on the postings?  The truth is out. It’s clear there are people on both sides of the truth, but for the most part, the top line elements of the Bush and Obama Administration actions – along with the assistance of their external contributors (journalists, congressmen, lobbyists, etc. etc.) – have been publicized.

How much money do you make from the ads on this blog?  Nothing! Hopefully, the ads are just a slight annoyance to readers. I operate a free site, so WordPress makes money on posting ads on bloggers’ free accounts like mine.

Why are you anonymous?  Because I don’t want people to know my identity! Seriously though, I felt I could go further with my accusations, speculations and commentary if I didn’t have to worry about it affecting my personal and business relationships. One may have assumed because I work to expose government malfeasance that I don’t want Big Bro to know who I am. I have no delusion of being able to hide my identity from the US government… (my wife frequently asks why there is a red laser dot in the middle of my forehead — I tell her to just ignore it…ha!)

That’s it for the Q&A

As you can see, I am not in this to make money on the blog. However, with full disclosure, I am a shareholder of both Fan and Fred; both common and preferred.  I don’t try compete with anyone else. In fact, I have posted work by others on this blog — journalists, other bloggers, etc. I have no affiliation to any group or person…a completely independent, average joe…

My background is irrelevant. If you like what you read – keep reading. If not, that’s cool, too!

I’m motivated by the truth…  I’ve fought — and won — wrongdoing on many other occasions, but obviously Fanniegate has been the biggest nut to crack!  …we’re getting closer by the day!

Even though it is time consuming to keep a blog current, I will try to get back into posting more pieces. There is interest in Fanniegate and all that remotely goes into it. The story has many, many angles… And there is recent, new interest in Fanniegate.  After Donald Trump was elected and after Steven Mnuchin made references to Fan/Fred immediately after his nomination, there have been many new people attracted to the story…trying to figure it all out for themselves.

By no means do I have it all figured out…there are people much smarter than me that can be consulted to learn more about specific details on Fanniegate. But I do appreciate the interest in my blog. I’ve had readers from over half the countries in the world — 110 out of 196. Besides the US, the top five countries are Canada, Germany, Singapore, Switzerland and Argentina.

One request I’ve received a few times is to update my post FANNIEGATE FOR BEGINNERS. I wrote that one in September 2015, so much has happened since. I will work on that update this weekend. It’s also been recommended to condense that piece into a one-page, bullet point summary…which I’ll try to get that one done, too.

Again, thanks for your interest in the blog.  If interested, below is a screenshot of the top blog hits by views (I personally don’t think those represent the best posts, they just receive the most views for whatever reason – timing of post, Google searches, etc.).

The blog has a search function that is easily seen on the right side of the page if viewed on a computer. On a tablet, you need to view in landscape (sideways) vs. portrait (up & down) mode. I can’t get the search bar to pop up when viewing this blog on my phone (there’s probably a way, but I can’t figure it out…).

Reach me on twitter @fanofred_ or email fnffight@gmail.com if you want to chat.


Top Blog Views:

top blog hits


What to look for: Budget 2018

Accompanying every administration’s budget each year is a supplement titled, “Analytical Perspectives” which provides additional detail to support the overall budget.

The Obama 2017 Analytical Perspectives can be found here.

There are numerous references to Fannie Mae and Freddie Mac in the 2017 document including the following passage:

Future of the GSEs To finish addressing the weaknesses exposed by the financial crisis, the housing finance system must be reformed, and Fannie Mae and Freddie Mac should be wound down. The bipartisan progress in the Senate in the previous session was a meaningful step towards securing a system that aligns with many of the Administration’s principles for reform, including ensuring that private capital is at the center of the housing finance system so that taxpayer assistance is never again required, and that the new system supports broad access to credit and affordable rental housing through programs like the Housing Trust and Capital Magnet Funds.

Further, the Consolidated Appropriations Act, 2016, included a provision that prohibits Treasury from selling or otherwise disposing of the preferred stock it holds in Fannie Mae or Freddie Mac until January 1, 2018, unless legislation instructing Treasury on how to do so is enacted into law. Further, this provision recommends that legislation regarding the future of Fannie Mae and Freddie Mac be enacted and, notwithstanding the previous limitation, suggests that Treasury should not sell or dispose of its stock until such legislation is enacted.

The Administration will continue to work with Congress to pass comprehensive reform, centered on several core principles: require more private capital in the system; end the Fannie Mae/Freddie Mac duopoly business model in order to improve system stability and better protect taxpayers; ensure broad access for all creditworthy families to sustainable products like the 30-year fixed rate mortgage in good times and bad; and help ensure sustainable rental options are widely available.

The above language was repeated for years throughout the Obama Administration. However, the Trump Administration has indicated many times that it will take a different approach to Fannie and Freddie vs. the previous administration.

The 2018 Analytical Perspectives is likely being drafted as we speak and is due out in May. In President Obama’s first term, the Fiscal 2010 Analytical Perspectives was published May 11, 2009. In subsequent administrative years the documents are published in February due to the team already in place.

Therefore, we should look forward to receiving Trump’s 2018 Analytical Perspectives this May. That document should provide the Administration’s intentions regarding how they plan to deal with Fannie and Freddie, if they have not already provided detail ahead of this publication.



The Time is Now

It was clear the Obama’s administration never wanted to deal directly with Fannie and Freddie, instead deferring to Congress. Obama happily received and spent Fan/Fred’s profits while “waiting for Congress.”

Even when it was clear Congress was unable or unwilling to pass legislation dealing with Fan/Fred, Obama’s team was comfortable “kicking the can” to the next Administration despite knowing that Fan/Fred’s capital reserves would go to $0 by the end of their first calendar year in office – 2017.

There have been a number of indicators from the Trump Administration stating they will deal with the situation sooner than later. Both Steven Mnuchin and Gary Cohn have publicly stated the need to address Fan and Fred as one of the Administration’s important agenda items.

Yesterday, an Executive Summary for Trump’s 2018 Budget was released. It was more or less a top line summary of a more detailed budget due out in May. In the detailed budget, we will look for items involving the Net Worth Sweep. But, in the mean time we can consider what Mick Mulvaney wrote in the Exec Summary regarding Fan/Fred.

There is one passage that seems to directly or indirectly reference Fannie and Freddie:

“Empowers the Treasury Secretary, as Chairperson of the Financial Stability Oversight Council to end taxpayer bailouts and foster economic growth by advancing regulatory reforms that promote market discipline and ensure the accountability of financial regulators.”

Ending Taxpayer Bailouts: for a  fiscal 2018 budget, the only “bailout” still on the Administration’s books is Fannie and Freddie (after a record 8 years and 6 months in conservatorship).

Foster Economic Growth: ending the uncertainty of Fannie/Freddie will inject life into the housing industry – roughly 20% of our economy.

Promote Market Disciplineput to rest the notion of private gain/public loss. Recapitalize Fan/Fred and allow them to compete in the free market without an explicit or implicit government backing.

Ensure Accountability of Financial Regulators: FHFA, under Obama-appointee Mel Watt, has refused to deal (at least publicly) with the Net Worth Sweep – after 4 years and 7 months! Again, this reference is in a fiscal 2018 budget…which other financial regulator needs to be held accountable more than Fan/Fred’s regulator — who has been doing the opposite of what is required by law from a conservator. This summary was written by Mulvaney, who as a Congressman, challenged Watt during a Banking Committee hearing asking why FHFA was ignoring the law regarding the conservatorship and the net worth sweep. He famously asked, “How can an agreement between two agencies trump the law!?”

Video clip of that exchange can be seen here: https://youtu.be/t7dqiiG0l4s

So, again, we’ll need to wait until May for the details of the budget to realize what this means for Fannie and Freddie in 2017.

However, in addition to the budget details, it will certainly be instructive to see if the quarterly dividends on the senior preferred stock are paid at the end of the month… a short two weeks away.

Another indicator of timing may be in the recent executive order on the financial system. President Trump stated he wanted action within 120 days (from February 3) on items that might involve Fan/Fred… or by the beginning of June.

We’ve waited long enough… now is the time for action…!!

Here is the Executive Order:

Presidential Executive Order on Core Principles for Regulating the United States Financial System


– – – – – – –


By the power vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1. Policy. It shall be the policy of my Administration to regulate the United States financial system in a manner consistent with the following principles of regulation, which shall be known as the Core Principles:

(a) empower Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth;

(b) prevent taxpayer-funded bailouts;

(c) foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis that addresses systemic risk and market failures, such as moral hazard and information asymmetry;

(d) enable American companies to be competitive with foreign firms in domestic and foreign markets;

(e) advance American interests in international financial regulatory negotiations and meetings;

(f) make regulation efficient, effective, and appropriately tailored; and

(g) restore public accountability within Federal financial regulatory agencies and rationalize the Federal financial regulatory framework.

Sec. 2. Directive to the Secretary of the Treasury. The Secretary of the Treasury shall consult with the heads of the member agencies of the Financial Stability Oversight Council and shall report to the President within 120 days of the date of this order (and periodically thereafter) on the extent to which existing laws, treaties, regulations, guidance, reporting and recordkeeping requirements, and other Government policies promote the Core Principles and what actions have been taken, and are currently being taken, to promote and support the Core Principles. That report, and all subsequent reports, shall identify any laws, treaties, regulations, guidance, reporting and recordkeeping requirements, and other Government policies that inhibit Federal regulation of the United States financial system in a manner consistent with the Core Principles.

Sec. 3. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.


February 3, 2017.