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Keefe Bruyette thinks Freddie Mac's (FMCC) announcement that Craig Phillips will join the company as executive vice president, corporate strategy and external affairs will be seen as an indication that the company is preparing for an effort by the Trump administration to privatize the government-sponsored enterprises. During Trump's first team, Phillips worked as Counselor to the Treasury Secretary and was leading the GSE privatization effort, the analyst tells investors in a research note. Keefe expects the shares of Freddie Mac and Fannie Mae (FNMA) to respond positively to the news. However, the firm continues to think there could be "meaningful downside" to the common shares if privatization occurs. The government's senior preferred shares are likely to be converted to common shares resulting in meaningful dilution to the common shares, contends Keefe. The firm has a Market Perform rating on both Freddie and Fannie. Freddie Mac + (+0.00%) Fannie Mae + (+0.00%)
Billionaire investor and Pershing Square Holdings founder Bill Ackman recently made waves on X (formerly Twitter) by doubling down on his bullish outlook for Fannie Mae OTC: FNMA and Freddie Mac OTC: FMCC. Ackman, whose investing acumen earned him comparisons to Warren Buffett and the “Baby Buffett” nickname, believes these government-sponsored enterprises (GSEs) are nearing a pivotal moment that could deliver massive returns for investors.
Mortgage Rate Optimism Primary Driver of Year-over-Year Improvement WASHINGTON , Jan. 7, 2025 /PRNewswire/ -- The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® (HPSI) decreased 1.9 points in December to 73.1 but remained substantially higher than year-ago levels due in part to ongoing mortgage rate optimism. A plurality of consumers continues to expect mortgage rates to decline over the next 12 months; while December's 42% share was lower than last month's 45%, it remains meaningfully improved compared to last December's 31%.
Shares of Fannie Mae and Freddie Mac , the mortgage giants under U.S. government control since 2008, surged to multi-year highs on Friday after federal agencies revealed a framework for their "orderly" release from conservatorship.
Fannie Mae is one of the best 'Trump Trades', as it offers asymmetric rewards to risk. With the government's purchase warrants set to expire in 2028, I believe the GSE's status will be resolved in the next few years. However, I do not believe it is the 10x returns widely touted by speculators and hedge fund managers.
WASHINGTON , Dec. 31, 2024 /PRNewswire/ -- Fannie Mae's (OTCQB: FNMA) November 2024 Monthly Summary is now available. The monthly summary report contains information about Fannie Mae's monthly and year-to-date activities for our gross mortgage portfolio, mortgage-backed securities and other guarantees, interest rate risk measures, and serious delinquency rates.
Bill Ackman anticipates that US President-elect Donald Trump will remove Fannie Mae and Freddie Mac (OTCQB:FMCC) from conservatorship, potentially converting them into private entities. Following Ackman's remarks on social media platform X, Fannie Mae and Freddie Mac stock surged 36% and 34% respectively.
Fannie Mae FNMA and Freddie Mac FMCC shares soared on Monday afternoon after billionaire investor Bill Ackman touted the stocks on social media.