Political Headwinds Buffet Fannie Mae’s Path to Privatization

Fannie Mae shares are facing renewed pressure following a significant policy shift by its regulator. The Federal Housing Finance Agency (FHFA) has announced its withdrawal from an international climate finance network, a move that casts fresh uncertainty over the mortgage giant’s long-awaited exit from government conservatorship.

The FHFA formally exited the Network for Greening the Financial System (NGFS), aligning itself with similar recent actions taken by the U.S. Federal Reserve and the Treasury Department. Agency Director Bill Pulte issued a sharp critique, stating the decision reverses a Biden-era policy that “drove up housing costs with politicized nonsense that prioritized climate activists over American families.” This policy reversal marks the end of a period of heightened focus on climate risk... Read more...