Fannie Mae and Freddie Mac shares are down 23% and 29%, respectively, this year, according to Dow Jones Market Data.
Housing finance giants Fannie Mae and Freddie Mac are now accepting additional credit scores that take into account rent and utility payments, a U.S. government official overseeing the agencies announced on Wednesday.
Shares of mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) saw huge price surges early Monday after hedge fund manager Bill Ackman posted about the two stocks on social media.
The Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association, known as Freddie Mac and Fannie Mae, were each placed into a federal conservatorship during the global financial crisis in 2008. The U.S. directed both companies to delist from the New York Stock Exchange in 2010 after the common shares of both firms dropped below $1.
Fannie Mae and Freddie Mac have built record net worths exceeding $170B combined after years of retaining earnings post-conservatorship. I recommend junior preferred shares like FNMAS, which could reach $25+ on dividend resumption or conversion, based on pro forma IPO valuations. Administrative action, not legislation, is expected to drive the end of conservatorship, with key Trump appointees leading the process.
Ackman brought his campaign directly to administration officials this month, according to people familiar with the matter.
Federal Home Loan Mortgage Corporation (FMCC) Q4 2025 Earnings Call Prepared Remarks Transcript
The directive of President Donald Trump for government-backed mortgage giants Fannie Mae and Freddie Mac to buy $200 billion worth of mortgage securities would seemingly spell the end to the idea that the giants would go public again in massive initial public offerings.
Attempting to lower housing prices, the administration is looking to step up a portfolio that was at the heart of the 2008-09 financial crisis.
Investors are betting on a new public offering of Freddie Mac and the eventual release from government conservatorship.
Michael Burry, the investor known for predicting the 2008 housing crisis, has disclosed sizable positions in the common stock of mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC), expressing bullish sentiment on their potential return to public markets. In a 6,000-word Substack post published on Monday, Burry wrote that he owns a “good size” of shares in both companies and shared optimism that plans to take them public again may be approaching.
Ackman, whose Pershing Square fund owns stakes in Fannie Mae and Freddie Mac, has benefited as their share prices have risen since the government began considering a privatization.