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Market Open: January 2, 2025

Fannie Mae, Freddie Mac shares surge after federal agencies reveal privatization path

Shares of Fannie Mae and Freddie Mac surged on January 3, 2025, following a report by Reuters that the U.S. Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury revealed plans to privatize the two government-sponsored enterprises (GSEs). The announcement detailed a multi-step process aimed at reducing government control and returning the companies to private ownership, which could potentially lead to increased competition and innovation in the mortgage market. The news sparked significant investor interest, with shares of both companies experiencing double-digit percentage increases in early trading. The privatization plan includes steps like recapitalization, regulatory reform, and the eventual sale of government-held shares, with the goal of enhancing the stability and efficiency of the U.S. housing finance system.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/fannie-mae-freddie-mac-shares-surge-after-federal-agencies-reveal-privatization-2025-01-03/ ]