Fannie Mae and Freddie Mac Shares Drop as FHFA Head's Dual Role as Acting Intelligence Director Raises Concerns

Deep News06-02

Shares of Fannie Mae and Freddie Mac fell on Tuesday following former President Trump's appointment of Federal Housing Finance Agency (FHFA) Director Bill Pulte to serve as acting Director of National Intelligence.

Pulte's lack of national security background is notable, and he is expected to retain his positions as FHFA Director and Chairman of Fannie Mae and Freddie Mac while serving in the acting intelligence role.

Steve Sosnick, Chief Strategist at Interactive Brokers, commented, "The appointment of Pulte clearly indicates he holds a significant position within Trump's inner circle, but the role of Director of National Intelligence is a considerable departure from his current responsibilities."

Sosnick added, "Will this distract him for a period? Possibly. But if this interim appointment is genuinely temporary, the fundamental situation is unlikely to change."

In a research note, TD Cowen analyst Jaret Seiberg wrote that Pulte "is likely to have less time to devote to housing policy going forward."

Shares of both Fannie Mae (FNMA) and Freddie Mac declined more than 3% on Tuesday, with both companies' stocks down over 30% year-to-date.

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