Fannie Mae Shares Plunge Amid Strategic Overhaul Speculation

Fannie Mae equity experienced a significant selloff on Tuesday, closing down 4.4% at $10.64 per share. The sharp decline followed disclosures from the company’s chief regulator indicating potential dramatic shifts in corporate strategy that could fundamentally reshape the mortgage giant’s direction.

Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), confirmed that Fannie Mae and Freddie Mac are evaluating potential investments in technology companies. This unconventional approach would position the government-sponsored enterprises to operate similarly to investment funds—a substantial departure from their traditional housing market mission.

Simultaneously, the regulatory agency is examining the implementation of transferable mortgages. Under current guidelines, Fannie Mae permits fixed-rate mortgage assumptions only Read more...