Rate It: Will Fannie Make Investors Rich?

By Matt Koppenheffer and David Hanson – May 9, 2013 at 9:00PM

OTC: FNMA

Federal National Mortgage Association

Market Cap

$2B

Today's Change

(-8.97%) -$0.13

Current Price

$1.32

Price as of April 18, 2024, 3:59 p.m. ET

Is this the next turnaround story?

The outlook at Fannie Mae and Freddie Mac isn't quite as bleak as it once was, but it still might not be a place for investors that are faint of heart. After witnessing the successful turnaround stories at AIG (AIG 0.56%) and Bank of America (BAC 1.53%), some investors are wondering if the GSEs are next in line to soar.

In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson discuss where they see Fannie and Freddie going in the future and if the two entities will have a place in their portfolios.

David Hanson owns shares of American International Group. Matt Koppenheffer owns shares of Bank of America and American International Group. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and Bank of America and has the following options: Long Jan 2014 $25 Calls on American International Group.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.