Fannie Mae (FNMA, Financial) and Freddie Mac (FMCC, Financial) insure the availability of 30-year fixed-rate mortgages. Home ownership has never been more affordable or sustainable during crises with Fannie and Freddie guarantees. The enterprises have been under federal control since 2008. The U.S. Treasury only recently agreed to their retaining the earnings necessary for capital safety and soundness. Treasury still has not agreed that $191 billion of "loans and fees" have been repaid – even after receiving over $300 billion of reimbursements and controlling 80% stakes. I expect The Supreme Court will recognize the rights of private enterprise and remedy this gating issue to Fannie's and Freddie's exit from conservatorship.
From Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) 2020 annual shareholder letter.
