The U.S. Department of the Treasury and the Federal Housing Finance Agency announced yesterday an agreement to amend the preferred stock purchase agreements between Treasury and each of Fannie Mae (FNMA) and Freddie Mac (FMCC) “to help ensure that the eventual release of the GSEs from conservatorship will be orderly and to reflect certain existing practices.” Among other things, the agreement restores Treasury’s previous right to consent to a release of the government-sponsored enterprises from conservatorship. In addition, under a separate side letter from FHFA to Treasury, FHFA will solicit public input, before releasing a GSE from conservatorship, regarding the potential impacts on the housing market and the GSEs. Shares of Fannie Mae are up 17% to $4.04 in morning trading while Freddie Mac is up 17% to $3.94.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on FNMA:
- Trump Trade: Chinese companies could sidestep tariffs again
- Bill Ackman Sees “Large Asymmetric Upside” for Fannie Mae and Freddie Mac (FMCC)
- Ackman says Fannie Mae, Freddie Mac ‘particularly interesting today’
- Ending GSE conservatorships a ‘show-me story,’ says BTIG
- Fannie Mae Focuses on 2025 Housing Finance Goals
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
