FANNIE MAE closed up 0.030 at 3.950. Volume was 77% below average (consolidating) and Bollinger Bands were 51% wider than normal.
Open High Low Close Volume___
3.985 3.990 3.920 3.950 1,998,275
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 3.99 2.86 2.10
Volatility: 74 145 101
Volume: 8,639,497 13,432,025 6,076,947
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FANNIE MAE is currently 87.9% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into FNMA.PK (mildly bullish). Our trend forecasting oscillators are currently bullish on FNMA.PK and have had this outlook for the last 30 periods.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 74.3119. This is not an overbought or oversold reading. The last signal was a buy 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.39. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 7 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -0. This is not a topping or bottoming area. The last signal was a sell 15 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.
Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise (GSE) chartered by the Congress. The Company supports liquidity and stability in the secondary mortgage market where mortgage related assets are purchased and sold. The Company’s activities include providing mortgage credit and indirectly enabling families to buy, refinance or rent homes. It securitizes mortgage loans originated by lenders into Fannie Mae mortgage backed securities (Fannie Mae MBS) and purchasing mortgage loans and mortgage-related securities, primarily for securitization and sale later. Fannie Mae operates in three business segments: Single-Family Credit Guaranty, Multifamily and Capital Markets. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS. The Company obtains funds to support its business activities by issuing a range of debt securities in the domestic and international capital markets. Fannie Mae conducts its business in the United States residential mortgage market and the global securities market.
The Company’s Single-Family business includes mortgage acquisitions, credit risk management and credit loss management. Single-Family business works with the Company’s lender customers to acquire single-family mortgage loans through lender swap transactions or working with its Capital Markets group, through loan purchases. Fannie Mae’s Single-Family business prices and manages the credit risk on its Single-family guaranty book of business, which consists of Single-family mortgage loans underlying Fannie Mae MBS and Single-family loans held in its mortgage portfolio. Single-family business and Capital Markets group securitize and purchase primarily Single-family fixed rate or adjustable rate, first-lien mortgage loans or mortgage related securities backed by these types of loans.
The Company securitizes or purchases loans insured by Federal Housing Administration (FHA) loans guaranteed by the Department of Veterans Affairs (VA), loans guaranteed by the Rural Development Housing and Community Facilities Program of the Department of Agriculture, manufactured housing loans and other mortgage-related securities. Its Single-family business securitizes Single-family mortgage loans and issues Single class Fannie Mae MBS. Fannie Mae’s Single-family business securitizes loans solely in lender swap transactions. The servicing of the mortgage loans held in its mortgage portfolio or that back its Fannie Mae MBS is performed by mortgage servicers on the Company’s behalf. For loans it owns or guarantees the lender or servicer must obtain its approval before selling servicing rights to another servicer.
Fannie Mae’s mortgage servicers collect and deliver principal and interest payments, administer escrow accounts, monitor and report delinquencies, perform default prevention activities, evaluate transfers of ownership interests, respond to requests for partial releases of security, and handle proceeds from casualty and condemnation losses. Its mortgage servicers are the primary point of contact for borrowers and perform implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans and other loss mitigation activities. Mortgage servicers also inspect and preserve properties and process foreclosures and bankruptcies.
The Company’s Multifamily business includes mortgage securitizations, credit risk management and credit loss management. The Company’s Multifamily business works with its lender customers primarily through its Delegated Underwriting and Servicing (DUS) program, to securitize multifamily mortgage loans delivered to it by lenders into Fannie Mae MBS in lender swap transactions. It also issues structured transactions backed by multifamily Fannie Mae MBS through the Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program. It also purchases multifamily mortgage loans and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. Its Multifamily business also works with its Capital Markets group to facilitate the purchase and securitization of multifamily mortgage loans and securities. Its multifamily guaranty book of business consists of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans held in its retained mortgage portfolio. Its Multifamily business has primary responsibility for pricing and managing the credit risk on its multifamily guaranty book of business, including managing the credit risk on multifamily loans and Fannie Mae MBS backed by multifamily loans that are held in its retained mortgage portfolio.
The Company’s Capital Markets group’s primary business activities include mortgage and other investments, mortgage securitizations, structured mortgage securitizations and other customer services, and interest rate risk management. Capital Markets group manages the Company’s investment activity in mortgage related assets and other interest earning nonmortgage investments. The Company funds its purchases primarily through proceeds it receive from the issuance of debt securities in the domestic and international capital markets. Its business activity is focused on making short-term use of its balance sheet rather than long-term investments. Activities Fannie Mae is undertaking to provide liquidity to the mortgage market include whole loan conduit, early funding, real estate mortgage investment conduits (REMICs) and other structured securitizations, and MBS Trading. Whole loan conduit activities include its purchase of both Single-family and Multifamily loans for the purpose of securitizing them.
Fannie Mae’s Capital Markets group is engaged in issuing both single class and multiclass Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third-party assets. Its Capital Markets group creates single class and multiclass Fannie Mae MBS from mortgage related assets held in its mortgage portfolio. The Company’s Capital Markets group creates single class and multiclass structured Fannie Mae MBS for its lender customers or securities dealer customers in exchange for a transaction fee. The Company’s Capital Markets group provides its lender customers with services that include offering to purchase a range of mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans, and assisting customers with hedging their mortgage business.
The Company’s Capital Markets revenues are primarily derived from its mortgage asset portfolio. Capital Markets group funds its investments primarily through the issuance of a range of debt securities in a range of maturities and by using derivatives. Investors in the Company’s debt securities include commercial bank portfolios and trust departments, investment fund managers, insurance companies, pension funds, state and local governments, and central banks.
The Company competes with Freddie Mac, Federal Housing Administration (FHA), the Department of Veterans Affairs (VA) and Ginnie Mae.