A Federal Housing Finance Agency report is asking Congress to allow it to charter new rivals for Fannie Mae (OTCQB:FNMA +1.4%) and Freddie Mac (OTCQB:FMCC +1.8%), Cowen’s Jaret Seiberg writes in a note to clients.
The FHFA didn’t ask for sovereign backstop on mortgage-backed securities, Seiberg said. Also in the note:
Sees FHFA proceeding with administrative reform and Congress following up “with legislation blessing the new structure”;
Will be a multi-year effort with a better understanding late in the year on “how the economics of GSE reform will work.”
Sees large capital raise.
Earlier, WSJ wrote about FHFA’s plans for getting Congress to act on housing finance reform.
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