Fannie, Freddie Shares Soar
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1don MSN
President Donald Trump on Wednesday said he soon planned to decide whether to privatize Fannie Mae and Freddie Mac, the government-sponsored entities that help provide stability and affordability to America’s home mortgage market.
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?