Trump may scrap Frannie reform if plan comes under fire, Cowen says – Freddie Mac (OTCMKTS:FMCC)


Cowen analyst Jaret Seiberg wonders if President Trump will “turn on housing finance reform if the public narrative is that government is getting a bad deal,” Seiberg writes in a note to client.

Fannie Mae (OTCQB:FNMA -1.2%) and Freddie Mac (OTCQB:FMCC -1.5%) slide.

Potential points that may trigger criticism  — returning to “a system where taxpayers take the risk and investors reap the gains,” or if the plans calls for forgiving $200B in outstanding preferred stock owned by the Treasury.

Current plan calls for pushing housing finance reform agenda over the next year and a half; White House position paper is due this month, Seiberg writes.

Previously: Barclays, Annaly weigh in on Frannie reform (June 26)

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