FHFA Director: Fannie Mae and Freddie Mac IPO "Highly Likely," Already Buying Mortgage Bonds

Deep News01-10

The Director of the Federal Housing Finance Agency (FHFA), Sandra Thompson, stated that an Initial Public Offering (IPO) for Fannie Mae and Freddie Mac remains "highly likely to occur."

He indicated that purchasing mortgage-backed securities could potentially enhance the profitability of the government-sponsored enterprises, as the yield on these securities is higher than that of Treasury bonds.

Thompson projected that these acquisitions would generate an additional $100 million in earnings for Fannie Mae and Freddie Mac.

He also confirmed that orders have already been placed to purchase $3 billion worth of mortgage-backed securities.

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