The Ratings Game: Fannie, Freddie overhaul could mean windfall for preferred stock, analyst says

Headquarters of Fannie Mae and Freddie Mac

Height Analytics on Friday initiated coverage of shares of Freddie Mac and Fannie Mae, citing expectations of “several positive events over the next six months” that will settle the thorny questions of ownership and control over the two mortgage giants.

Freddie FMCC, -2.96% and Fannie FNMA, -2.36% were swept into federal conservatorship as the housing finance system melted down in 2008, and have remained in limbo ever since. But the stars may have finally aligned for their release. A business-friendly White House has just installed a new regulator who’s a fan of small government to oversee the two enterprises by working with a Treasury secretary with a professional background in housing finance.

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