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Berkowitz: Trump Treasury May Mean Independence for Fannie and Freddie

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From Bruce Berkowitz‘s email to investors titled “Trump Treasury May Mean Independence for Fannie and Freddie”

 

Fannie Mae

Photo by NCinDC

Dear Investor,

In a recent New York Times article, Gretchen Morgenson cogently asserts: “In place of the strident, anti-G.S.E. ideology that has dominated the conversation on both the left and the right since the bailout, it looks as if a more pragmatic and positive approach to the companies and their role in the mortgage market is on the way.”

According to Ms. Morgenson, recent comments from the Trump administration reflect “an almost total turnabout” from the “array of complicated and impractical proposals” concocted by “housing officials under President Obama and some influential lawmakers” that would have “reconfigured the mortgage market and, in some cases, handed over a big chunk of it to the nation’s largest banks.”

Furthermore, Ms. Morgenson emphasizes that the Trump administration already recognizes “the significant role a well-capitalized Fannie and Freddie could play in ensuring that borrowers have access to mortgage money in good economies as well as bad.”

We encourage you to read more: http://www.nytimes.com/2016/12/02/business/trump-treasury-may-mean-independence-for-fannie-and-freddie.html

Kind regards,

Investor Relations

Fairholme Distributors, LLC (12/16)

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