Sharing words of financial advice, Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) CFO Dave Benson said that if an individual intends to invest in a business, he should be capable to define the core value of the firm in a few short sentences. Benson is accountable for various functions at the mortgage lending company, including controllers, financial reporting, treasury, asset/liability management and financial planning and analysis.

The view

Even with a multifarious corporate arrangement under his management, the CFO of Federal National still consider that simplifying business structure into a brief overview can define a company’s investment value. Benson added that he have discovered that a business that can be described within a few short statements is worth a look. Some of the key questions that it should answer are the business target customers, the key financial drivers, and the competitive advantage. If these things can be described simply, it marks the right investment opportunity.

The buzz

In unrelated news, U.S. Senator Elizabeth Warren wants HUD, Freddie Mac and Federal National to discontinue selling soured loans to different hedge funds and private equity entities. Warren is a pioneer legislator wanting government to end the practice. The legislator believes that the move will make it much easier for distinct non-profit firms to buy them.

The objective

Investment firms have been rushing to restrict house owners as against the process of delinquent loans modifications. The companies design these mortgages in a way that it becomes unworkable for nonprofits groups to compete with other leading companies. The main goal of it is these loan sales should have specific guidelines with basic consequence for homeowners. Federal National and Freddie Mac have speed up mortgage auction that went sour after the financial crisis. The FHFA presented new set of rules for the loan sales in this March.


Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) enjoyed a quiet day last Friday as it finished the last trading session with a negligible loss of 0.88%. The volume of the day at 1.5 million against the daily average of 2 million reflected the indifference of the investors. It has been in a contraction phase for a long time now, from the broader perspective and that phase may be coming to an end soon. In the short term, all the price action is contained in a perfect corrective channel and only a breakout now can trigger a trending move.