The regulator overseeing Fannie Mae and Freddie Mac, the two largest mortgage lenders in the US, has been criticized for providing too little information about their financial health.
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that play a critical role in the country’s mortgage market. They guarantee millions of home loans, allowing banks to extend credit to more borrowers.
On May 29, the regulator released its latest quarterly report for Fannie Mae, showing a $1.4 billion loss. However, the report did not provide much detail about the company’s financial condition or prospects.
As a result, investors have been left with concerns about the companies’ long-term viability and potential impact on the broader economy. The shares of Freddie Mac plummeted 2.13% in response to the lack of information.
The regulator’s reluctance to release detailed information has sparked calls for greater transparency from lawmakers and industry experts. This raises questions about whether Fannie Mae and Freddie Mac are adequately protected as critical institutions in the US financial system.
With the regulator’s silence, investors are left wondering what the future holds for these two mortgage giants.
Source: https://www.barrons.com/articles/fannie-mae-freddie-mac-regulator-light-on-details-shares-trump-pulte-8af67126