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Freddie Mac And Fannie Mae Shares Soar With Possible GSE Privatization


GSE privatization has been a goal for many major investors, especially for companies like Freddie Mac and Fannie Mae. Now, there is a possibility of this goal being achieved according to a recent report.

"Less than two weeks ago, Federal Housing Finance Agency Acting Director Joseph Otting reportedly told employees the agency was weeks away from announcing a plan to take the GSEs out of conservatorship," according to HousingWire.

Coincidentally, The Wall Street Journal reported a 170% hike in common shares for Fannie Mae and Freddie Mac, according to the report. After almost 10 years, hedge funds may finally be winning their argument in favor of the government selling its stake in the market, giving private shareholders the burden of the liability.

"While the WSJ said that an end to the conservatorship is merely speculation – and that such a change could impact the price and availability of mortgages for millions of Americans – it would be a final step in the resolution of the housing crisis that rocked the nation," according to the report.

Without a concrete decision, GSE privatization is still up in the air, though the confidence among investors looks to be growing by the day.

To learn more about possible GSE privatization, click on the image above.

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