Update: FNMA is making another highly explosive move up here in the 3rd week of October 2013 and otcmagic is all over it.
FNMA made a historic short covering rally / hedge fund pump run earlier this year from pennies to well over $5 per share at its height at the end of May. Since then the stock dropped down significantly hitting lows of $1 back at the end of June.
Since hitting $1 FNMA has been on a slow rise recently surpassing $1.90 per share.
to get the inside scoop on FMNA subscribe to OTCMagic.com right now.
Fannie Mae (OTC: FNMA) made a huge move up earlier this year from its $0.30 base. The stock exploded to incredible highs since pushed by a massive short position. The move comes after the collapsed mortgage giant announced that is has priced its third Multifamily DUS® REMIC in 2013 totaling $904.3 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on March 13, 2013.
Johnson, Fannie Mae Senior Vice President of Multifamily Capital Markets stated "FNA 2013-M4 is our first GeMS deal to include 10-year DUS pools with 7-years of yield maintenance, and we saw strong investor demand for these classes due to the yield pick up they offer,"
As everyone in the world knows, FNMA operates as a government-sponsored enterprise. The company conducts business in the U.S. residential mortgage market and the global securities market. It supports market liquidity by securitizing mortgage loans, which means it places loans in a trust and Fannie Mae mortgage-backed securities backed by the mortgage loans are then issued.
FNMA also securitizes a majority of the single-family and multifamily mortgage loans the company acquires. The company operates through three business segments: Single-Family Credit Guaranty (Single-Family); Multifamily; and Capital Markets.
FNMA went down along with FMCC during the housing collapse and subsequent mortgage scandal. Basically what happened is that they starting giving homebuyers credit to anyone that wanted it and then repackaging that debt into securities which were then market triple A; the biggest rating for debt based securities. Of course the underlying loans were not triple A, in fact they were garbage and in the end that come back to bite them in the ass, predictably and everything completely collapsed.
Play the run here but be very careful!
to get the inside scoop on FMNA subscribe to OTCMagic.com right now. Also everyone should know, we have something HUGE coming!