Latest news with #housingfinance
Forbes
a day ago
- Business
- Forbes
Why The Trump Administration MAGA Stock Dreams For Fannie And Freddie Could Be A Windfall For Wall Street
Trump rings the opening bell on the trading floor of the New York Stock Exchange (NYSE) on December 12, 2024 after being named TIME's 'Person of the Year."The Trump administration is teeing up what could be the biggest shakeup in U.S. housing finance since the 2008 crisis—a pair of IPOs that might value Fannie Mae and Freddie Mac at a combined $500 billion. The plan, which was first reported by The Wall Street Journal and is still being finalized by the administration, would see the federal government sell between 5% and 15% of each company, potentially raising about $30 billion in what would be one of the largest stock offerings in American history. Yet behind the fanfare lies a precarious gamble on institutions still tethered to taxpayer support and whose profitability is largely cushioned by an implicit government guarantee. Senior administration officials have in recent days confirmed the plans are far along, though crucial structural decisions—such as whether to list the two separately or together—remain unresolved. President Trump himself has signaled his intention to proceed with the listings this year: 'I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES,' he wrote on social media last week. On Saturday, he posted an edited picture of himself ringing the opening bell at the NYSE for a hypothetical, combined entity called the Great American Mortgage Corporation trading under the ticker 'MAGA.' The Treasury—which currently holds the bulk of both government-sponsored enterprises (GSEs) equity—could release new shares, sell existing ones, or blend both strategies to create liquidity. Wall Street heavyweights such as JPMorgan, Goldman Sachs, Citigroup, and Bank of America have reportedly been asked to advise on pricing and structure. The history of Fannie Mae and Freddie Mac is a cautionary tale. Fannie's roots stretch back to 1938, Freddie's to 1970; Both were designed to keep mortgage credit flowing by securitizing and guaranteeing home loans. Their business model—buying mortgages from lenders, bundling them into mortgage-backed securities and guaranteeing payment to investors—helped lower borrowing costs for generations of Americans. During the mid-2000s housing boom, both ramped up exposure to riskier loans and loosened underwriting standards, leaving them vulnerable when home prices crashed. During the housing bubble the top executives of these quasi-governmental agencies benefited from compensation packages in the tens of millions. By September 2008, the Federal Housing Finance Agency (FHFA) had placed them into conservatorship after a combined $187 billion Treasury rescue, wiping out most private shareholder value. In the years since, the GSEs have returned to profitability, paying dividends that exceeded the bailout amount. Yet they have remained under government control, their retained earnings capped for much of the past decade until capital buffers were gradually rebuilt. FHFA's 2024 Annual Report to Congress shows that by year-end, Fannie Mae's total equity had grown $17 billion to $94.7 billion, while Freddie Mac's climbed 24.8% to $59.6 billion. In a brief published earlier this year by Jim Parrott of the Urban Institute, a Washington, D.C.-based think tank, and Mark Zandi, chief economist of Moody's Analytics, the two highlighted the importance of keeping the implicit federal guarantee post-IPO. 'Critical to the rating agencies and the Fed is not that the GSEs posed little risk, but that they enjoyed the unlimited backing of the U.S. government,' they write, warning that without that support, funding costs could climb sharply—driving up mortgage rates by 0.6 to 0.9 percentage points as well as shrinking credit access. The pair go on to caution that ending conservatorship without a clear legislative or financial framework risks delivering 'no value,' and could leave the system 'less liquid and stable.' 'We believe it's essential for the government to retain the explicit government guarantee if they pursue privatization, which could take years to implement,' wrote Lawrence Gillum, chief fixed income Strategist for LPL Financial. 'Removing the guarantee would disrupt both markets and make housing even less affordable.' A $30 billion stock sale by the Federal government would provide a one-time boost to Treasury's coffers but it would only represent an estimated 1.6% slice of the current fiscal year's projected $1.9 trillion deficit. After the sale it is likely that the Federal government would still own 85% to 95% of the government sponsored mortgage companies and thus benefit from any appreciation in its share price. The windfall would also extend beyond the public purse. Hedge fund billionaires such as Bill Ackman and John Paulson, who built large positions in the mortgage giants years ago betting on their return to the market, could reap outsized rewards if the IPOs hit their targets. Ackman, who has long advocated for the privatization of the two GSEs, owns roughly 10% of the common stock of both Fannie and Freddie through his fund, Pershing Square Capital Management. Ackman's firm first invested in Fannie and Freddie common stock in late 2013, roughly five years after they were put under government conservatorship during the financial crisis. His cost basis for each averaged just over $2 per share. Today, Freddie Mac and Fannie Mae currently trade at $9 per share and $11.50 per share, respectively. According to previous filings from his firm (Pershing Square stopped disclosing these specific holdings in regular filings several years ago), he owned 115.5 million shares of Fannie and 63.5 million shares of Freddie—that stake today would be worth roughly $1.8 billion. Wall Street underwriters also stand to collect millions in advisory fees. Banks like Wells Fargo and JPMorgan Chase were top originators for Freddie and Fannie last year, while institutions like BlackRock and PIMCO are significant holders of mortgage backed securities. If the Trump administration pulls it off, the planned Fannie and Freddie offerings could rank among the most ambitious privatizations in modern U.S. history. Still, trying to privatize much of the nation's mortgage infrastructure during the worst housing affordability crisis in a generation will be no easy task, as critics have pointed out. The current administration will no doubt need to be more specific and methodical than they have been so far if they want to avoid losing investor confidence and causing a shock to the financial system.
Entrepreneur
7 days ago
- Business
- Entrepreneur
Ummeed Housing Finance Raises INR 250 Cr from BII to Boost Affordable Housing
The Gurugram‑based housing finance company will deploy the capital as mortgage‑backed loans targeted at low‑income and underserved borrowers across India, with a significant focus on enabling women to become homeowners. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Ummeed Housing Finance Private Limited has raised INR 250 crores from British International Investment, the United Kingdom's development finance institution and impact investor. The Gurugram‑based housing finance company will deploy the capital as mortgage‑backed loans targeted at low‑income and underserved borrowers across India, with a significant focus on enabling women to become homeowners. The funding will be channelled into long‑tenure, affordable housing loans designed to increase property ownership and strengthen financial inclusion in urban and semi‑urban areas. According to the company, these loans will help address a critical financing gap for groups that often lack access to formal credit. Ashutosh Sharma, Founder and Managing Director of Ummeed Housing Finance, said, "It is a proud moment for us to be associated with British International Investment. This BII facility will help us drive the development agenda, leading to the improvement in the quality of life for borrowers and co-borrowers in the low- and middle-income strata of the society." Founded by Ashutosh Sharma, Ummeed Housing Finance offers home loans, business loans, and loans against property, primarily for lower and middle‑income families. Operating under the regulatory framework of the Reserve Bank of India and the National Housing Bank, the company has expanded to over 130 hubs in 9 states. Its services cater to customers with informal incomes, simplifying the mortgage process and reducing loan turnaround times. Since inception, the company has served more than 33,000 customers and has assets under management exceeding INR 2,400 crores. This new investment is expected to benefit up to 3,000 women through property ownership and financial empowerment. It also qualifies as a 2X investment under a global initiative to promote women's economic participation. Shilpa Kumar, Managing Director and Head of India, British International Investment, commented, "Having an affordable and safe home can lay the foundation for underserved families to access better economic opportunities and improve their livelihoods. By increasing access to housing finance through Ummeed, we are helping more women to build their financial resilience. It is in line with the Government's vision of facilitating Housing for All and we ensure the support reaches those who need it the most." With this capital infusion, Ummeed aims to strengthen its role in expanding affordable housing access and promoting inclusive growth in India.
Associated Press
20-07-2025
- Business
- Associated Press
AngelAi Goes All-in With Poker Legend Michael "The Grinder" Mizrachi to Champion Housing Equality
In a bold move that bridges the worlds of high-stakes poker and high-impact social innovation, AngelAi partnered with Michael 'The Grinder' Mizrachi, who had a historic victory at the 2025 World Series of Poker (WSOP) Main Event on Wednesday, where he claimed the coveted World title, a $10 million prize and entry into the hall of fame. LAS VEGAS, NV / ACCESS Newswire / July 19, 2025 / Mizrachi, known for his relentless precision, discipline, and strategic brilliance, has a winning mindset that mirrors AngelAi's mission: breaking barriers to fair and low-cost housing. With AngelAi on his shoulder, The Grinder is proving that at the poker table and in our mission to provide equal access to housing finance, Nothing is Beyond 'The Grinder' Mizrachi WSOP Champion 'We're inspired by Michael's tenacity and his commitment to excellence,' said Pavan Agarwal, CEO and creator of AngelAi. 'Just as he dominated the WSOP with focus and finesse, we're leveraging AI to help everyday people win in the housing market-by making affordability and fairness the new standard.' AngelAi uses cutting-edge artificial intelligence to empower communities, streamline housing access, and advocate for transparency in real estate. The partnership with Mizrachi amplifies this mission, aligning his championship mindset with AngelAi's drive to champion customer success. About AngelAi and Celligence: AngelAi has been developed by Celligence International, LLC, one of the fastest-growing fin-tech and Ai companies. Celligence has engineered a novel Ai that is evolving and self-generating neural cells which come together to solve complex problems. The Celligence Ai is deterministic, not merely generative, and it delivers 100% accurate and trustworthy responses, as is required for financial transactions. At Celligence, a team of brilliant engineers ('Brillianeers') is expanding the boundaries of the financial services industry through innovations in mobile applications, customer acquisition, retention algorithms, and Ai-based process automation, and is continuously filing new patents supporting our technology. Visit for terms and limitations of the Trusted Warranty. WSOP is a registered trademark of Caesars Interactive Entertainment, LLC. Contact InformationSophie MIchaels PR Manager 914 309 8221 SOURCE: Celligence / Angel Ai press release
Globe and Mail
09-07-2025
- Business
- Globe and Mail
PulteGroup Announces Retirement of Debra W. Still, Vice Chair of Pulte Financial Services
PulteGroup, Inc. (NYSE: PHM), one of America's largest homebuilders, today announced that Debra W. Still, CMB, Vice Chair of Pulte Financial Services, will retire at the end of 2025, concluding an extraordinary 42-year career with the Company. This press release features multimedia. View the full release here: Still's remarkable tenure spans the transformation of both PulteGroup and the entire mortgage industry. Starting as a Branch Manager in 1983, she advanced through the Company and the industry to become one of the most respected leaders in housing finance, serving as President of Pulte Mortgage starting in 2004 and ultimately as CEO of Pulte Financial Services from 2010 to 2023 before transitioning to her current role as Vice Chair. "Deb Still is one of the most respected leaders in our company and the broader housing-finance industry," said Ryan Marshall, PulteGroup President and CEO. "For more than four decades, she has embodied the very best of our company values. Deb has never shied away from difficult assignments, bringing fresh thinking to every challenge and always prioritizing our customers and colleagues above all else. Her impact extends far beyond our walls, as she has helped shape national housing policy and mentored countless professionals across our industry." Under Still's leadership, Pulte Financial Services expanded to encompass Pulte Mortgage LLC, PGP Title, and Pulte Insurance Agency, employing over 1,100 individuals nationwide. Her strategic vision has been instrumental in positioning PulteGroup as a leader in providing comprehensive homebuying solutions. Still's influence extends well beyond PulteGroup. She made history in 2013 as the second woman in over 100 years to serve as Chairman of the Mortgage Bankers Association, and she testified before Congress on multiple occasions about critical housing finance issues. She currently serves as Chairman of MBA's Opens Doors Foundation, which provides mortgage and rental payment assistance to families with critically ill or injured children. 'Looking back on these four decades, what I'm most grateful for are the relationships made within Pulte and the broader industry. Colleagues who became lifelong friends, industry partners who shared our vision, regulators and Washington, D.C. decision makers, and of course the countless families and individuals we've had the privilege to serve,' said Still. 'Pulte gave me the chance to grow, to lead, and to make a real difference." Still has received numerous accolades, including MBA's Andrew D. Woodward Distinguished Service Award in 2014. The Five Star Institute recognized her as one of "The Top Ten Women in Mortgage and Housing," and the Denver Business Journal named her "Most Admired CEO of 2020." HousingWire Magazine has featured her multiple times in its "Influential Women of the Housing Economy" list. Following her retirement from PulteGroup, Still will continue her board service with Chimera Investment Corporation, where she has served as a director since 2018, and Enact Holdings, Inc., where she joined the board in 2021. She will also maintain her involvement in various housing industry organizations. Eric Hart, who was named President and CEO of Pulte Financial Services in 2023, will continue to lead the organization. "While we will deeply miss Deb's leadership within our team, we're grateful that her expertise will continue to benefit the broader industry through her ongoing board roles and advocacy work," added Marshall. About PulteGroup PulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America's largest homebuilding companies with operations in more than 45 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, the company is one of the industry's most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup's purpose is building incredible places where people can live their dreams.
Associated Press
01-07-2025
- Business
- Associated Press
Veros Expands VeroSELECT Platform with Valligent's Virtual Inspection and New Evaluation Offerings
SANTA ANA, Calif.--(BUSINESS WIRE)--Jul 1, 2025-- Veros Real Estate Solutions (Veros ® ), a leading provider of real estate property valuation and risk management solutions, today announced a significant expansion of its VeroSELECT™ platform through the integration of Valligent's virtual inspection, disaster inspection, and new evaluation services. This move strengthens VeroSELECT as the premier unified platform for property valuation and risk management—offering a full ecosystem of data, analytics, and service types to drive efficiency and support confident housing finance decisions. The housing finance industry continues to demand faster workflows and stronger risk mitigation. This integration gives VeroSELECT users centralized control over their valuation processes—from AVMs and evaluations to property inspections and appraisals, including Valligent's advanced virtual tools. With one intuitive platform, users gain a holistic view of collateral risk and industry-leading operational efficiency. 'Our commitment at Veros is to continually advance what's possible in housing finance,' said Sarah Petteway-Dib, Senior Vice President, Product & Data Operations at Veros. 'Integrating Valligent's virtual inspection and valuation capabilities transforms how clients access and manage their workflows—providing more flexibility, sharper insights, and greater confidence in lending decisions.' This expansion builds on recent momentum, including the addition of Disaster Vision to the VeroSELECT API. Now, clients can quickly identify properties likely impacted by natural disasters and initiate virtual inspections with homeowners to assess potential damage, all within the same platform. The newly added Valligent offerings now available on VeroSELECT include: These services enhance VeroSELECT's broad capabilities, joining an extensive portfolio that includes the VeroVALUE ® AVM suite, Broker Price Opinions (BPOs), inspection-based solutions like VeroVALUE or other Automated Valuation Models + Inspections and VeroPHOTO™, as well as appraisal services such as ValPRAZE™. Advanced analytics, vendor management, and tools like Disaster Vision provide clients with deeper insights and scalability across the full lending lifecycle. 'This integration represents a unified vision for the future of property valuation,' said George Paquette, Chief Operating Officer at Valligent. 'By combining Veros' foundation in data and analytics with Valligent's agility in virtual solutions, we're delivering a powerful, cohesive pipeline that supports smarter decisions from origination through servicing.' VeroSELECT™ continues to exemplify Veros' commitment to empowering its clients with a robust, flexible, and transparent platform. Its key features—including superior vendor management, real time order updates, advanced platform logic, direct customer support, full scalability, complete transparency with Software Security Assurance (SSA) and audit capabilities, consistent performance, and granular user permission control—are precisely designed to give businesses superior control and insight into their entire valuation process. VeroSELECT™ is the ultimate single platform solution for comprehensive property valuation and risk management. About Veros Real Estate Solutions Founded in 2001, Veros Real Estate Solutions (Veros ® ) is a trusted leader in empowering mission-critical housing finance decisions and risk management through next-gen technology, data, and analytics. Veros is the primary architect and technology provider for the government-sponsored enterprises' Uniform Collateral Data Portal ® (UCDP ® ) and works closely with the Federal Housing Administration (FHA) to support its Electronic Appraisal Delivery (EAD) portal. Veros also streamlines the real estate lending process for U.S. Veterans through its valuation management services with the U.S. Department of Veterans Affairs (VA). Trusted and used by several large government entities. About Valligent Founded in 2003, Valligent is a national real estate valuation company that utilizes innovative technology to deliver tailored solutions to support the evolving housing finance industry. Valligent combines seasoned real estate professionals, technology, and automation to deliver timely, fair, and accurate property valuations. Serving banks, credit unions, mortgage lenders, and insurance companies nationwide, Valligent integrates with leading data providers, Loan Origination Systems, on-demand cloud computing platforms, and other direct integrations. View source version on CONTACT: Media Contact Heather Zeller Vice President of Marketing [email protected] 866-458-3767 KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY DATA ANALYTICS FINANCE CONSULTING PROFESSIONAL SERVICES REIT RESIDENTIAL BUILDING & REAL ESTATE SOURCE: Veros Real Estate Solutions Copyright Business Wire 2025. PUB: 07/01/2025 05:30 AM/DISC: 07/01/2025 05:31 AM
