Fannie Mae and Freddie Mac Shares Surge as U.S. Agencies Announce Potential Release from Conservatorship

Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) surged to multi-year highs on Friday, following the announcement of a new framework aimed at facilitating their exit from conservatorship. The U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) disclosed that they had amended their agreements with the two mortgage giants to ensure a smooth and orderly transition out of federal control.

The agencies confirmed they would seek public input before finalizing the release, underscoring their commitment to a transparent process. This development is significant for Fannie Mae and Freddie Mac, which were created by Congress to provide affordable mortgage financing but were placed under conservatorship after the 2008 financial crisis due to severe financial difficulties.

With renewed efforts to return the companies to private control, this move could mark a major step toward privatization. Investor confidence spiked as news of the potential exit spread, with Fannie Mae’s stock jumping 24.4% to $4.23, its highest level since 2017. Freddie Mac also saw a 23.2% increase, reaching $4.15, the highest price in over eight years.

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