Fannie Mae-No Politics (FNMA)

[navycmdr]

Ackman says Fannie, Freddie 'firmly' on path to end conservatorship

FNMA, FMCC Bill Ackman's Pershing Square Holdings said in the company's semiannual report,

"Fannie and Freddie, along with their regulator and conservator FHFA, have continued to make substantial progress toward ending their conservatorships.

While FNMA and FMCC common shares have declined 29% and 27%, respectively, year-to-date, possibly due to uncertainty created
by the upcoming presidential election, we believe that both
companies are now firmly on a path towards exiting conservatorship
and raising substantial first-loss private capital...

We believe the recently proposed capital rule fails to balance
the objectives of safety and soundness of the GSEs with the need
to deliver affordable mortgage rates to consumers, and market
returns to investors.

In order to emerge from conservatorship, Fannie and Freddie
must earn sufficiently high returns on capital to attract
investors who can provide the tens of billions of equity capital
for the companies to recapitalize.

Earlier this month, we submitted a public comment letter on the
re-proposed capital rule which addresses these issues...

The Covid-19 crisis has further highlighted the critical role
Fannie and Freddie play in the housing finance system.

When the crisis hit, competitors withdrew from the market,
leaving Fannie and Freddie among the only sources of mortgage
capital for homeowners."

Read more at:
https://thefly.com/n.php?id=3153240