Shares of Fannie Mae (OTCQB:FNMA) surged 7.3% and of Freddie Mac (OTCQB:FMCC) climbed 5.6% after the head of the Federal Housing Finance Agency was reported as saying he found "a couple hundred million dollars" of savings at government-sponsored enterprises that the agency oversees.
The FHFA is also in charge of the Federal Home Loan Bank system and the Federal Farm Credit system, both of which qualify as GSEs, in addition to Fannie and Freddie.
"I think their earning potentials can go up," FHFA director William J. Pulte told National Mortgage News. "I think they're worth way more than what some people are saying that they're worth."
Details on the cuts may be released later this week, according to the article. In April, Fannie Mae (OTCQB:FNMA) said it fired more than 100 employees for misconduct.
Fannie Mae's (OTCQB:FNMA) Q1 earnings release listed its net worth as $98.3B, rising from $94.7B at the end of 2024, while Freddie Mac's (OTCQB:FMCC) was listed as $62.4B, up from $59.6B in Q4 2024
The FHFA didn't immediately respond to a request from Seeking Alpha to clarify Pulte's statement.
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