navycmdr
26 minutos hace
Trump issues executive order: Emergency price relief on housing
January 20, 2025, By Sarah Wheeler
Latest update: Jan. 20 at 9:15 pm central time: added specific information about emergency price relief for housing.
What are President Trump’s priorities for housing in his second term? That’s the burning question for professionals in real estate, mortgage, title, appraisal and homebuilding — and the answer started to take shape on the president’s first day in office Monday.
By Monday night, Trump issued this memorandum on his executive order tackling inflation and housing relief:
“I hereby order the heads of all executive departments and agencies to deliver emergency price relief, consistent with applicable law, to the American people and increase the prosperity of the American worker.
This shall include pursuing appropriate actions to: lower the cost of housing and expand housing supply; eliminate unnecessary administrative expenses and rent-seeking practices that increase healthcare costs; eliminate counterproductive requirements that raise the costs of home appliances; create employment opportunities for American workers, including drawing discouraged workers into the labor force; and eliminate harmful, coercive “climate” policies that increase the costs of food and fuel.”
Specific to housing, the memo states: “Moreover, many Americans are unable to purchase homes due to historically high prices, in part due to regulatory requirements that alone account for 25 percent of the cost of constructing a new home according to recent analysis.
“In sum, unprecedented regulatory oppression from the Biden Administration is estimated to have imposed almost $50,000 in costs on the average American household, whereas my first-term agenda reduced regulatory costs by almost $11,000 per household. It is critical to restore purchasing power to the American family and improve our quality of life.”
The day began with Trump’s inaugural address, which was focused on making America great again, but wasn’t specific to housing. “From this moment on, it’s going to be America First. Every decision on trade, on taxes, on immigration, on foreign affairs, will be made to benefit American workers and American families,” the president said in his address.
Trump has pledged to sign up to 100 executive orders on his first day in office, which can be grouped into these categories:
Immigration: 10 executive orders on border security and illegal immigration, including a national border emergency declaration
DEI/ defining gender: Ending DEI programs in government, defining two sexes.
Energy/Climate Change: Declaring a national emergency on energy, withdrawing from the Paris Accord.
Inflation: See above.
Miscellaneous (renaming the Gulf of Mexico, extending the deadline for the TikTok ban, etc.)
We’ll keep an eye on the specifics of those orders as they roll through today and this week, as some — like inflation initiatives — could directly affect housing. But Trump’s housing policies can also be seen in his picks for federal departments and regulatory agencies.
Trump is famously anti-regulation and has promised to look at every government agency and regulatory body to see where he can make cuts. On Monday night, Trump officially created the Department on Government Efficiency (DOGE) by executive order to carry out this vision, headed by Elon Musk. (Trump accomplished this by renaming the United States Digital Service, created in 2014 by the Obama administration. The DOGE effort was facing multiple lawsuits because it was operating under unofficial status).
Monday evening Trump signed an executive order to freeze government hiring and a “regulatory freeze” preventing the creation of new federal regulations, NPR reported.
Here’s what his plan to reshape federal agencies and regulators and influence economic factors looks like so far.
HUD
HUD was identified in the Project 2025 presidential transition project as an agency targeted for massive budget cuts. The author of the HUD section was Trump’s former HUD Secretary Ben Carson, who wrote that HUD needed a “reset” which would include “a broad reversal of the Biden administration’s persistent implementation of corrosive progressive ideologies across the department’s programs.”
Trump’s nominee for HUD Secretary in this term is Scott Turner, who worked very closely with Carson in Trump’s first term. Turner is the former executive director of the White House Opportunity and Revitalization Council (WHORC), a member of the America First Policy Institute, a former professional football player and a Texas state representative.
During Trump’s first term, Turner oversaw roughly $50 billion of private investment in opportunity zones. In his confirmation hearing last week, Turner emphasized that he would be looking very closely at the HUD budget to get rid of any inefficiencies.
FHFA
Trump announced his pick for FHFA director just last week: Bill Pulte. Pulte is the grandson of the late homebuilding icon William Pulte and is the founder of Pulte Capital Partners, which focuses on construction investments in “middle-market companies and lower-priority divisions of national companies,” according to the company’s website.
The FHFA is charged with supervision, regulation, and housing mission oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, to make sure they fulfill their mission to serve as a reliable source of liquidity and funding for housing finance and community investment. What the agency’s goals and priorities will be under Pulte is not yet clear. With his family ties to homebuilding, Pulte is seen as a “friend to the industry,” according to investment banker and author Chris Whalen in an interview with HousingWire.
- Trump nominates Bill Pulte for FHFA Director
- Treasury amends PSPAs for ‘orderly’ exit of GSEs from conservatorship
-FHFA finalizes new goals for Fannie Mae, Freddie Mac
JSmith5
10 horas hace
Calling his price "conservative" means that you think somehow things are likely going to be better for legacy common holders than this. Do you really expect Treasury to have less than 71% of the common in the end, or for the P/E multiple to be greater than 15?
Yeah - I hear you. All these price predictions are just fun speculation. Any of them are possible. And its good to hear other people's theory of the possible. I still contend that $40 or so would not be unreasonable as I have explained in several posts. But a lot of assumptions on my part (also I would like to mention that I believe the utility Duke Energy had a P/E of 19 last I checked).
That being said, I do want to note that Paulson was among the rich folks at the Inauguration and was sitting with folks like Musk and Bezos. He was in the box seats and House members had to sit in the bleachers. So that bodes well for preferred. However, Trump did not sign the EO I submitted freeing the GSEs - at least at the rally. Maybe he is doing this as we speak (or as I type). I am going to bed early tonight as we are still trying to catch up on our sleep because of the fireworks the other night at Trump National and our dog (named "Freddie" of course, as he is a boy - otherwise it would have been "Fannie" as he was, as were the GSEs, supposedly, "rescued") still won't come out from under the bed. So maybe I will see where he signed our EO in the Post tomorrow.
Nats
detearing
11 horas hace
Understanding the Relationship Between FNMA and FNM
To analyze whether FNM (the stock traded on the Berlin Stock Exchange) follows the volatility of FNMA (the stock traded on the OTC market), we need to consider several factors, including market dynamics, trading environments, and the nature of both exchanges.
1. Overview of FNMA and FNM
FNMA, or the Federal National Mortgage Association, is a government-sponsored enterprise (GSE) in the United States that provides liquidity to the mortgage market. It trades primarily on over-the-counter (OTC) markets, which are less regulated than traditional exchanges. This can lead to higher volatility due to lower trading volumes and less stringent reporting requirements.
FNM represents FNMA’s shares traded on the Berlin Stock Exchange. The Berlin Stock Exchange is part of a larger network of European exchanges and operates under different regulations compared to U.S. markets. Generally, European exchanges may have more stringent listing requirements and regulatory oversight than OTC markets.
2. Volatility Factors
Volatility in stock prices can be influenced by various factors:
Market Sentiment: Both FNMA and FNM are subject to investor sentiment regarding U.S. housing markets, interest rates, and economic conditions.
Liquidity: OTC stocks like FNMA may experience greater price swings due to lower liquidity compared to stocks listed on major exchanges like the Berlin Stock Exchange.
Regulatory Environment: The regulatory framework governing trading practices can impact volatility. The Berlin Stock Exchange has stricter regulations that may contribute to more stable trading conditions for FNM.
3. Correlation Between FNMA and FNM
While both stocks represent ownership in the same underlying entity (FNMA), their price movements may not always align perfectly due to:
Currency Fluctuations: FNM is priced in euros while FNMA is priced in U.S. dollars. Changes in exchange rates can affect how investors perceive value between these two listings.
Market Conditions: Different market conditions in Europe versus the U.S. can lead to divergent price movements even if they are fundamentally linked.
Trading Hours: The trading hours for each exchange differ, which means that news affecting FNMA could impact its price before it affects FNM.
4. Conclusion: Volatility Comparison
In conclusion, while there is likely some correlation between FNMA’s volatility on the OTC market and FNM’s performance on the Berlin Stock Exchange due to their connection as representations of the same company, several factors suggest that FNM may exhibit more stability compared to FNMA. This stability arises from stricter regulations and potentially higher liquidity associated with European exchanges.
Thus, it can be said that FNM does not strictly follow the volatility of FNMA; rather, it tends to exhibit more stability due to its trading environment on a regulated exchange.