Fannie Mae-No Politics (FNMA)

[navycmdr]

Trump 2020 outlook bodes well for Fannie and Freddie, analyst says

Dec. 31, 2019 3:23 PM ET| By: Carl Surran, SA News Editor

--- Pres. Trump's re-election would favor Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC), since a Trump-led Federal Housing Finance Agency likely would allow the housing finance and mortgage giants to raise capital and exit conservatorship in 2021 and 2022, says Height Capital analyst Edwin Groshans.

--- "In 2020, we expect significant progress" on legal and administrative fronts, including ending the "net worth sweep" of Fannie and Freddie's profits to the Treasury, Groshans writes, adding that "while the process is taking significantly longer than we initially projected, the momentum continues to be positive."

--- Cowen's Jaret Seiberg says newly confirmed FHFA Director Mark Calabria has "done more in six months to advance the recap and release of Fannie and Freddie from conservatorship" than all his predecessors combined.

-- Groshans maintains a Buy rating on all series of the junior preferred shares of Fannie and Freddie while rating the common shares of both at Hold.