Fannie Mae-No Politics (FNMA)

[jacklanvo99]

Fannie Mae (FNMA) and Freddie Mac (FMCC) Investors Elated By Trump Win: Here are 3 Reasons Why
http://investcorrectly.com/20161123/fannie-mae-fnma-freddie-mac-fmcc-investors-elated-trump-win-3-reasons/
Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) and Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) is seeing renewed interest. Investors and billionaire John Paulson expect a policy clean up for mortgage sector from Trump.

Hedge fund billionaire Paulson is expecting humongous profits through Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) and Federal Home Loan Mortgage Corp (OTCMKTS:FMCC). Investors have struggled to get a pie of their dividends from both the companies as the government took majority of the profits. The companies were bailed out by government by shelling out $187.5 billion in 2008.

Billionaire Paulson is having a stake in both Fannie Mae and Freddie Mac. Shareholders continue to fight with government through lawsuits without much success. But now the chances of bringing back a smile to the investors has increased. Shares of mortgage lenders have almost doubled ever since trump won.

Here is why investors are cheering a Trump win, below are the three reasons.

Policy cleanup

Investors are expecting a radical policy cleanup which will help the housing and mortgage lobby finally get their due. After Fannie Mae and Freddie Mac were acquired by the government, the investors have been looking for respite. Though Trump never formally acknowledged housing-mortgage industry and their woes during his Presidential campaign, The Republican Party has long been calling it a corrupt business model that needs restructuring.

End to litigations

Years of litigation with the government has rendered investors helpless as the Obama administration took control of both mortgage agencies and kept most of their profits. However, a new Republican White House may mean an end to litigations. A pro-business Trump and his economic adviser during campaign Paulson are expected to ensure that the institutionalization of housing mortgage market does not get out of hand. As documents get released and several advocacy groups find their voice in Trump’s presidency, litigations may end and investors may get their due.

The presence of Paulson

The move to sweep all profits “violated the rights of thousands of shareholders across America, “This action should be reversed, and we look forward to an outcome that restores the rights of shareholders in these companies.” According to Paulson & Co

Paulson’s association with the ‘Informal Coalition on Housing Finance Reform’ should not be ignored. As more hedge fund managers and housing advocates find their space in Washington DC, it is highly likely that a pro-investor policy could turn the tables for good.

Academicians and policy think tanks are backing Fannie Mae and Freddie Mac shareholders. A new White House brings a new ray of hope for investors.