Fannie Mae and Freddie Mac shares surge after privatization plan announced, positive.

From Investing.com: 2025-01-03 19:06:08

Shares of Fannie Mae and Freddie Mac soared to multi-year highs after U.S. agencies detailed a plan for their release from government control. Treasury and FHFA amended agreements to ensure a smooth transition. The GSEs were created to support affordable mortgage financing but struggled after the 2008 crisis, requiring a taxpayer bailout. Efforts to privatize them have been ongoing, with expectations high under Trump’s second term. Fannie’s shares rose 24.4% to $4.23, hitting levels last seen in 2017, while Freddie Mac climbed 23.2% to $4.15, reaching over eight-year highs. Analysts anticipate privatization under the incoming administration.



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