Release of the transcripts from FHFA’s listening session on the GSEs’ housing goals was delayed for weeks, but the comments from affordable housing advocates remain fresh.
Veteran stock analyst Richard Bove upgraded the common shares of Fannie and Freddie to “hold” from “sell.” Last week, analyst Bose George had downgraded the stocks to “underperform.”
Treasury’s stake in the GSEs should be used to create a joint venture focused on affordable housing. Also, to ensure success, Fannie and Freddie should be converted into utilities, two industry pros recommend.
In addition to a couple of traditional K-deals, Freddie Mac offered sustainability bonds and deals based on supplemental loans and small-balance loans.
Fannie financed $76 billion through its Delegated Underwriting and Servicing program, while Freddie pumped out $82.5 billion in loan purchases and guarantees.
Their new Senate majority, albeit a slim one, should make it easier for Democrats to pass key budget priorities. But what does it mean for Fannie and Freddie?