Regulators overseeing Fannie Mae and Freddie Mac announced yesterday that the two would be consolidating some repetitive "back-office" functions. Could this be the beginning of a total consolidation of the two? And could it lead to a phasing out of these two government sponsored giants of the secondary mortgage market, shifting the risk of mortgage-backed security investments to the private sector?

In this video, Motley Fool financial analysts David Hanson and Matt Koppenheffer discuss what this scenario would look like, and how REIT investors could be affected. 

 

David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. 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.