Trump Makes Fannie Mae And Freddie Mac Shareholders Great Again

Munchin is making Fannie Mae and Freddie Mac shareholders great again. Shares of (Fannie Mae OTCMKTS: FNMA) are currently up 34 percent today, while Freddie Mac shares are clocking in 32 percent gains (OTCMKTS: FMCC)at the time of this writing. And that is not all both stocks are up about 200% since Donald Trump won the election on November 8th 2016. No wonder Bill Ackman and Bruce Berkowitz are so excited about the Trump admin. The two large shareholders expect a revamp of housing policy which could be extremely lucrative to the shareholders. Munchin is very close with Eddie Lampert and is also connected (through that medium?) to Bruce Berkowitz.

But catalyst for today’s rally – Steve Munchin saying on Fox Business Network that the GSEs should not be under Government control. Below is a rough transcript via QTR

Rough Transcription of Mnuchin’s Fox Appearance

Maria: Would you move to have these privatized?

Mnuchin: Absolutely. We gotta get Fannie and Freddie out of government ownership. It makes no sense that these are owned by the government and have been controlled by the government for as long as they have. In many cases this displaces private lending in the mortgage markets and we need these entities that will be safe; so let me just be clear we’ll make sure that when they’re restructured they’re absolutely safe and they don’t get taken over again but we gotta get them out of government control.

Maria: This is a big deal. These are huge institutions. You think that. If we saw that as not complicated wouldn’t that have happened already? That it would get out of government?

Mnuchin: Well I think with this administration (Obama) it hasn’t been a priority. If it had been a priority it would have. And in our administration its right up there in the list of the top 10 things that we’re going to get done and we’ll get it done reasonably fast.

Did you notice that Mnuchin used the term “RESTRUCTURED” as opposed to “REFORMED”.

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