The hedge fund billionaire predicts Treasury will write off its senior preferred shares in the GSEs and exercise its warrants for 80% of their common stock.
Among many other issues, the shutdown would pause authorization for new flood insurance policies under the National Flood Insurance Program, potentially impacting home sales.
Much of the decline was the result of a change in how Freddie Mac classifies loans subject to a repurchase claim for which the seller has provided a remedy.