Fannie and Freddie Overhaul Reboot Benefits Many Mortgage Players

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Heard on the Street: While the shares of Fannie and Freddie have plunged, stocks of others in the mortgage industry may see a boost from a change in policy

Fannie Mae and Freddie Mac may have been waylaid on their journey back to private hands. But the way things are moving, some big players in the mortgage business could end up in a better place.that the government’s sweep of the housing giants’ profit didn’t exceed their regulator’s statutory authority and that presidents can readily replace the head regulator was a one-two blow to Fannie and Freddie’s shares, which are down more than 40% in the past week.

Preparing the government-sponsored enterprises to attract private investor capital involved steps like raising their capital requirements, yet still needing to boost their returns. To many in the sector, that was a recipe for higher fees and tighter access to guarantees.

 

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