Fannie Mae-No Politics (FNMA)

[Chief Slapaho]

More Reason for Fannie Mae and Freddie Mac Shareholders to Be Afraid
Patrick Morris, The Motley Fool
Sat Feb 15, 6:00AM CST

Fannie Mae and Freddie Mac have seen their stock prices rise by almost 950% over the last year -- but recent congressional action reveals the future may not be so bright.

More potential overhaul
Press wires have been abuzz lately about the possible action from the Senate Banking Committee to introduce a bill in the coming weeks that would bring overhaul to the mortgage financing industry and overhaul the current system entirely.

The chairman and ranking members of the committee, Tim Johnson (D-SD) and Mike Crapo (R-ID), respectively, issued a rare joint statement last week that noted; "With the hearing and information-gathering stage behind us, our hard work continues as we dive deep into the drafting and negotiating phase of Housing Finance Reform. Our goal from the start has been to produce the strongest bipartisan bill possible -- a bill that will strengthen the housing finance system while ensuring a level playing field for all lenders and access to credit for all creditworthy homebuyers, no matter where they live."

There was no guidance on what the bill will entail, but many have speculated it will draw on the Corker-Warner bill, which has called for the winding down of Fannie Mae and Freddie Mac within the next five years and would ultimately provide the common shareholders of the two government sponsored entities with little to nothing in return.