Freddie Mac, Fannie Mae Stocks Soar
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A proposal by President Donald Trump to privatize Fannie Mae and Freddie Mac after almost two decades under government control has the mortgage companies’ stock prices leaping to their highest levels in 16 years.
Fannie Mae and Freddie Mac have surged on Trump privatization hopes, but common shares may now be overvalued, especially Fannie Mae. Click here to read more.
Pulte described layers of bureaucracy and paperwork that has raised the cost of housing and made Fannie Mae and Freddie Mac "obese."
Moody’s has downgraded the long-term senior unsecured debt ratings of Fannie Mae and Freddie Mac to Aa1 from Aaa, following its May 16 downgrade of the U.S. government.
An explicit guarantee for Fannie Mae and Freddie Mac could cause the risk weighting of agency MBS to decline, in turn freeing up banks' balance sheets.
The GSEs have been under federal conservatorship since the 2008 financial crisis, so what’s the goal of ending that status?
Of the popular “Trump trades” this year, one hinging on privatization of housing giants Freddie Mac and Fannie Mae could be particularly problematic for U.S. housing finance. That’s the view of a team at Pimco,