Is This Man Good or Bad News for Fannie Mae and Freddie Mac Investors?

By Matt Koppenheffer, Morgan Housel, and David Hanson – Jan 6, 2014 at 2:54PM

OTC: FNMA

Federal National Mortgage Association

Market Cap

$2B

Today's Change

(1.47%) $0.02

Current Price

$1.45

Price as of April 23, 2024, 3:59 p.m. ET

Will Mel Watt's leadership of the FHFA completely change the story for Fannie Mae and Freddie Mac investors?

Mel Watt

Shares of Fannie Mae and Freddie Mac had a wild ride in 2013, as both ended the year up nearly 1000% as investors regained confidence that shareholders may ultimately receive a share of the companies' profits. Now, changes are brewing atop Fannie and Freddie's conservator, the FHFA. Mel Watt, a lifetime Democrat, is now leading the agency and could make some big changes.

In this segment of The Motley Fool’s financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson are joined Motley Fool One analyst Morgan Housel to discuss how Watt could potentially be a good and bad thing for shareholders.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. Fool contributor Morgan Housel has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.