Ed DeMarco, the former director of the FHFA, wasn't shy about his desire to manage Fannie Mae and Freddie Mac in a way that put the two institutions on the path to being wound down. Current FHFA director, Mel Watt, seems to have a different opinion. What does this mean for shareholders?
Watt has said he intends to run the two organizations with the housing market in mind more than what the future of mortgage finance looks like. Current shareholders are seemingly betting on the status quo remaining the same and Congressional inaction continuing -- eventually leading the two institutions to be returned to shareholder hands.
In the following video, Motley Fool analysts David Hanson, Anand Chokkavelu, and Matt Koppenheffer discuss Watt's recent comments and if the initial positively reaction by shareholders was the right one.
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Anand Chokkavelu, CFA has no position in any stocks mentioned. David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.