If you are waiting for a plan from Washington to wind down mortgage finance giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC), don't hold your breath. They aren't going anywhere.
Far from ending their dominance, policymakers are drafting new rules governing the origination and securitization of mortgages that might only strengthen the stronghold of Fannie and Freddie, according to FBR Capital analyst Paul Miller.
"We foresee a continued dominance of the implied government guarantee. While Fannie Mae and Freddie Mac may be ended 'in name,' Congress will keep the infrastructure in place to further its homeownership goals," Miller wrote in a report titled the "Future of the Housing Market: Winners and Losers."
Read more...Fannie, Freddie Will Live Forever: Street Whispers | Real Estate | Minyanville's Wall Street
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.