President Obama Signals Change On Fannie And Freddie Reform

Seeking Alpha - January 21, 2015 - January 22, 2015

Seeking Alpha, By David Sims

Last night’s State of the Union address may have signaled the change in messaging that Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) shareholders had been anticipating. In a note several weeks ago, analysts at KBW suggested that the President would abandon efforts to eliminate the GSEs through a legislative approach. Hopes were dashed shortly thereafter when the President called Congress to pass a bill.

This change in messaging may have actually occurred last night. President Obama failed to mention Fannie, Freddie, or housing reform at all. In fact the closest he came to this topic was discussing lower mortgage premiums and how they help the middle class to remain strong.

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