Jan. 12 at 2:31 PM
$FMCC $FNMA from grok and cleaned up with ChatGPT.
Recent statements from key Trump administration and housing figures suggest an 80–90% likelihood of positive Fannie Mae news coming out of Davos this week. Trump has already ordered Fannie and Freddie to buy
$200B in MBS to lower rates and stabilize housing—widely seen as a precursor to broader GSE reform. The move boosts earnings through higher-yield assets and signals financial strength ahead of possible privatization.
Bill Pulte has teased ‘very exciting’ Davos housing announcements, including ideas like portable mortgages, and has said the bond purchases strengthen the case for a Fannie IPO by improving profitability without disrupting recapitalization. Allies like Kevin Hassett have echoed the message while avoiding upstaging Trump, and investors such as Bill Ackman continue projecting strong post-IPO valuations (up to ~
$34/share) as the GSEs approach their
$450B MBS cap.