GSE Investors Wait For Watt To Leave FHFA

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About: Freddie Mac (FMCC), FNMA, Includes: FMCCH, FMCCI, FMCCL, FMCCN, FMCCP, FMCCS, FMCCT, FMCKP, FNMFN, FNMFO
by: Glen Bradford
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Glen Bradford
Value, growth at reasonable price, long-term horizon, portfolio strategy
Summary

“There are changes we will be able to make with a new director at the FHFA,” Mnuchin said.

Watt's term expires in the next 3 weeks on January 4.

Joseph Otting is who I think becomes acting director of FHFA, and I think that the administration begins working immediately with him.

Bloomberg's Mnuchin commentary seems to suggest, however, that Mnuchin may wait to act until a new FHFA director is confirmed, which would push administrative action later into 2019.

Mulvaney as Chief of Staff is good for shareholders since he proposed legislation reversing the net worth sweep.

Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) remain completely in government control and have been this way for over a decade since they were put into conservatorship. Despite the fact they