Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] FRE and FNM
Date: Mon, 15 Apr 2002 00:35:03 -0400
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This is a multi-part message in MIME format. - ------=_NextPart_000_028A_01C1E415.62575020 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Charley, I have not read the Barron's article, frankly I would not line = the bird cage with Barron's, no bird deserves such abuse. But if you = understand how Fannie Mae and Freddie Mac and the other lesser govt = agencies work, then the extent of their debt is only reflective of the = level of new mortgages being issued by banks and S&Ls. It is all = collateralized against physical real estate. To date, the level of bankruptcies (trust me, I follow this closely = because of my continued and renewed investment in EPIQ) does not show me = a problem with a higher than tolerable rate of default on home = mortgages, suggesting that the banks continue to follow valid credit = criteria. And FRE / FNM only buy the best of the bank loans, which = restricts the banks even lending on marginal properties. Most banks will = not even do "fixer up" type loans, because they cannot resell the loans = to a govt agency. The biggest problem, and the source I suspect of these continued rumors, = comes about because the govt agencies are getting a lot of loans paid = off, thus paying off principal and reducing the principal on which they = continue to pay above market interest rates. Tom Worley stkguru@bellsouth.net AIM: TexWorley - ----- Original Message -----=20 From: Chazmoore@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Sunday, April 14, 2002 9:26 PM Subject: [CANSLIM] FRE and FNM Since M is such an important part of CANSLIM, did anyone read the = Barron's article on homebuilding, or perhaps hear Roger Arnold's radio = broadcast about the over extension of Freddie M and Fanni M? These two = quasi-governmental agencies now carry more debt than the US Treasury. = Arnold suggests the boom in homebuilding over the past year or so is = attributed to FRE and FNM loose mortgage requirements. Further, if there = is a slowdown in mortgage demand, these two agencies could be in = trouble.=20 I am no expert in this field but it reminds me of the Savings and Loan = problem of the 1980s. Any comments from anyone who knows this industry?=20 Charley=20 - ------=_NextPart_000_028A_01C1E415.62575020 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2715.400" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial>Charley, I have not read the Barron's article, = frankly I=20 would not line the bird cage with Barron's, no bird deserves such = abuse. =20 But if you understand how Fannie Mae and Freddie Mac and the other = lesser govt=20 agencies work, then the extent of their debt is only reflective of the = level of=20 new mortgages being issued by banks and S&Ls. It is all = collateralized=20 against physical real estate.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>To date, the level of bankruptcies (trust me, I = follow=20 this closely because of my continued and renewed investment in = EPIQ) does=20 not show me a problem with a higher than tolerable rate of default on = home=20 mortgages, suggesting that the banks continue to follow valid credit = criteria.=20 And FRE / FNM only buy the best of the bank loans, which restricts the = banks=20 even lending on marginal properties. Most banks will not even do "fixer = up" type=20 loans, because they cannot resell the loans to a govt = agency.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>The biggest problem, and the source I suspect of = these=20 continued rumors, comes about because the govt agencies are getting a = lot of=20 loans paid off, thus paying off principal and reducing the principal on = which=20 they continue to pay above market interest rates.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV>Tom Worley<BR><A=20 href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20 TexWorley</DIV> <DIV style=3D"FONT: 10pt arial">----- Original Message -----=20 <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20 title=3DChazmoore@aol.com = href=3D"mailto:Chazmoore@aol.com">Chazmoore@aol.com</A>=20 </DIV> <DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20 href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV><B>Sent:</B> Sunday, April 14, 2002 9:26 PM</DIV> <DIV><B>Subject:</B> [CANSLIM] FRE and FNM</DIV></DIV> <DIV><BR></DIV><FONT face=3Darial,helvetica><FONT size=3D2>Since M is = such an=20 important part of CANSLIM, did anyone read the Barron's article on = homebuilding,=20 or perhaps hear Roger Arnold's radio broadcast about the over extension = of=20 Freddie M and Fanni M? These two quasi-governmental agencies now carry = more debt=20 than the US Treasury. Arnold suggests the boom in homebuilding over the = past=20 year or so is attributed to FRE and FNM loose mortgage requirements. = Further, if=20 there is a slowdown in mortgage demand, these two agencies could be in = trouble.=20 <BR>I am no expert in this field but it reminds me of the Savings and = Loan=20 problem of the 1980s. Any comments from anyone who knows this industry?=20 <BR>Charley</FONT> </FONT></BODY></HTML> - ------=_NextPart_000_028A_01C1E415.62575020-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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