NEW YORK, NY / ACCESSWIRE / July 20, 2017 / It seems investors were not that concerned over a budget proposal idea from the House Republicans this week that would privatize Fannie Mae and Freddie Mac. Both stocks saw gains on staggering trading volume.

RDI Initiates Coverage on:

Federal Home Loan Mortgage Corporation
https://ub.rdinvesting.com/news/?ticker=FMCC

Federal National Mortgage Association
https://ub.rdinvesting.com/news/?ticker=FNMA

Federal Home Loan Mortgage Corporation's shares closed up 4.72% yesterday. The stock didn't seem too affected by a plan unveiled by the House Republicans this past Tuesday. The plan calls for both Freddie Mac and Fannie Mae being privatized. According to Steven Mnuchin, the Treasury Secretary, "we need to fix Fannie and Freddie." This is what Mnuchin said at a May testimony before the Senate Finance Committee. Isaac Boltansky, an analyst with Compass Point LLC said, "Big picture, Republicans would undoubtedly like to shrink the government's footprint in the residential mortgage market, but that's simply not a political reality. Housing is a fifth of our economy, and there is simply no political will or procedural capacity to dramatically reshaping the mortgage market."

Access RDI's Federal Home Loan Mortgage Corporation Research Report at:
https://ub.rdinvesting.com/news/?ticker=FMCC

Federal National Mortgage Association's shares closed up 8.57% on Wednesday on volume roughly six times higher than usual. Both Fannie Mae and Freddie Mac saw gains despite news revealing that the House Republicans want to privatize them as a part of their 2018 budget proposal. The 2018 budget was unveiled by the GOP members of the House of Reps on Tuesday and was authored by Republican Budget Chairman Diane Black. As part of the proposed plan, there would be more than $200 billion in cuts to mandatory spending programs next to privatizing both Fannie Mae and Freddie Mac. The plan states, "The Treasury has already provided $187 billion in bailouts to Fannie and Freddie, and taxpayers remain exposed to $5 trillion in Fannie Mae and Freddie Mac's outstanding commitments, as long as the entities remain in conservatorship. Our budget recommends putting an end to corporate subsidies and taxpayer bailouts in housing finance."

Access RDI's Federal National Mortgage Association Research Report at:
https://ub.rdinvesting.com/news/?ticker=FNMA

Our Actionable Research on Federal Home Loan Mortgage Corporation (OTC: FMCC) and Federal National Mortgage Association (OTC: FNMA) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com