“We believe that if Treasury decides it wants to forgive the [senior preferred shares], then this plan appears reasonable,” said Keefe, Bruyette & Woods analyst Bose George.
Bill Ackman’s plan calls for Treasury to forgive its senior preferred shares, a strategy that some industry observers say would be politically risky for President Trump.
Homebuilders prefer interest rate buydowns over pricing incentives, not only because they’re cheaper, but also because if they lower the price on one home, other buyers will expect the same.
The benefits the FHLBank system provides to the financial sector look to outweigh the roughly $6.9 billion federal subsidy they receive via an implicit government guarantee.
Outstanding advances for the FHLBank system fell to $693.48 billion in the third quarter from $742.85 billion in the second. Still, the 11 FHLBanks’ combined profits were up almost 10%. (Includes three data tables.)
Pershing Square founder Bill Ackman, who earlier this year pitched a swift end to the conservatorship, now says it could take as long as three years. He also has some near-term suggestions.
The integration of Freddie’s new Quality Control Advisor Plus, its performing loan repurchase alternative pilot and its Income Calculator is expected to reduce loan defect levels and lower costs for lenders.