Fannie, Freddie Shares Soar
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U.S. President Donald Trump said on Wednesday he will make a decision in the near future about taking mortgage finance firms Fannie Mae and Freddie Mac public, saying that he is giving "very serious consideration" to doing so.
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?