Freddie Mac, Fannie Mae Stocks Soar
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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.
When asked Friday about President Donald Trump’s talk about privatizing housing-finance giants Fannie Mae and Freddie Mac, Treasury Secretary Scott Bessent sounded like a guy with a lot on his to-do list — and that matter is not at the top.
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?