Obama Endorsement Builds Momentum for Housing-Finance Overhaul

Obama Speech on U.S. Economy, Housing Market

As a percentage of FSCs recent stock price of $10.77, this dividend works out to approximately 0.89%, so look for shares of Fifth Street Finance Corporation to trade 0.89% lower all else being equal when FSC shares open for trading on 8/13/13. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen or click here to find out which 9 other stocks going ex-dividend you should know about, at DividendChannel.com Below is a dividend history chart for FSC, showing historical dividends prior to the most recent $0.0958 declared by Fifth Street Finance Corporation: In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from FSC is likely to continue, and whether the current estimated yield of 10.67% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of FSC shares, versus its 200 day moving average: Looking at the chart above, FSCs low point in its 52 week range is $9.66 per share, with $11.13 as the 52 week high point that compares with a last trade of $10.79.

A housing tax credit that helps

And in downturns, their support helped keep mortgages available for new borrowers. A case in point: Since the financial market collapse in 2007, almost 90% of the country’s mortgages have been bought or guaranteed by the two companies. Some critics blame Fannie and Freddie’s troubles on government mandates to finance more loans for lower-income Americans. But Wall Street firms started the rush into risky subprime and exotic loans; Fannie and Freddie just followed their competitors’ lead. The real problem with Fannie and Freddie was that the public assumed correctly, as it turns out that the government wouldn’t allow them to fail, making them more attractive to lenders and investors.

Fannie Mae and Freddie Mac, originally chartered by Congress to expand mortgage finance, were taken over by the government in 2008 amid mounting losses in the financial crisis. Propping them up cost taxpayers $187.5 billion, although the firms have now returned to profitability. “We have to end Fannie and Freddie going forward and replace them with a commitment to the notion that private capital must be wiped out before the government pays on any form of catastrophic guarantee or reinsurance,” a senior administration official told reporters. The departments of Treasury and Housing and Urban Development have been working on an outline for housing finance reform. They outlined several options in a white paper to Congress in 2011.

FSC+Dividend+History+Chart

The measure was written with technical input from the Obama administration. Senate Bills Banking Committee chairman Tim Johnson, a South Dakota Democrat and Mike Crapo of Idaho , the panels senior Republican, are spending August working on a bill of their own, which is likely to incorporate an approach similar to that of the Corker-Warner legislation. As senior members of the committee, Johnson and Crapos housing bill will take precedence over the Corker-Warner measure. In the Senate, both parties agree that the status quo is unsustainable, and bipartisan consensus is starting to emerge, Johnson said in an e-mailed statement.

Finance ministry works overtime to firm up steps to arrest rupee fall

CBI gets ready to fight govt in SC to defend its autonomy

Editor’s Pick Is it the right time to invest in gold? NEW DELHI: Top finance ministry officials worked overtime on the weekend to firm up additional steps to arrest the sliding value of the rupee and contain the current account deficit (CAD). Continuing the discussions initiated by Finance Minister P Chidambaram yesterday, Economic Affairs Secretary Arvind Mayaram held a meeting of senior officials, including Additional Secretary (Capital Markets) K P Krishnan and top tax officials. Some announcements are likely to be made by the Ministry on Monday, either in Parliament or outside, sources said. The steps being contemplated by the Ministry to check the rupee fall and boost forex flows include further relaxation of external commercial borrowing (ECB) norms for state-owned companies, curbs on import of non-essential goods and encouragement to exports.

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