Future of Fannie Mae and Freddie Mac comes into question

CNB's Andrew Ross Sorkin reports news regarding major student loan companies.

[jimmyobvious]

Sorkin's wrong on one point: the GSE's are currently NOT paying any money to the federal government. Fannie & Freddie have been retaining earnings since 2018 and will not pay another dime to Treasury until they reach their minimum capital requirements. Consequently, it's to the government's benefit to monetize their stake in Fannie & Freddie by releasing them from conservatorship and allowing them to recapitalize with a private equity raise. This would also help ensure there's adequate capital buffers for the next housing downturn.

Additionally, HERA's was never intended as a means to allow a 16 year-long government conservatorship. It was supposed to be a framework for rehabilitation. If this was a bank--or worse, a private citizen's business--people would be losing their minds. Government had no business running these companies for 16 years, especially not allowing them to build capital.

[ChristopherPascale]

Profits and losses should determine. They had higher 2023 profits than Tesla, GE, Netflix, and Capital One.

Should be a $50 stock.

[gkelly]

Say goodbye to your 30 year fixed term mortgage