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Sydnee Gatewood
Sydnee Gatewood
Articles (2467) 

Bruce Berkowitz Comments on Fannie Mae and Freddie Mac

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January 31, 2020 | About:
Fannie Mae (FNMA) and Freddie Mac (FMCC) (“Fannie & Freddie”) preferred stocks accounted for 830 basis points of 2019 performance. Fannie earned $3.9 billion insuring $3.0 trillion of mortgages in the latest three months. Freddie earned $1.8 billion insuring $2.1 trillion of mortgages. Fannie and Freddie are expected to earn and retain billions of dollars each year – charging less than one-half of one percent to guarantee affordable, long-term mortgages. No other institution does it for less or better serves families who want the American dream of home ownership and financial independence. The White House and Treasury Department want Fannie and Freddie released from a perpetual conservatorship. The housing market is a major segment of the U.S. economy. Freeing Fannie and Freddie will accelerate America’s growth and prosperity. In fact, the law mandates their eventual release and recent court decisions (after review of discovery documents) are starting to confirm.

From Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) annual shareholder letter for 2019.

About the author:

Sydnee Gatewood
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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