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Fannie & Freddie to Delist from NYSE - From Your Orange County Loan Officer

Mortgage and Lending with American Capital Corporation

Fannie and Freddie are government backed entities that keep mortgages moving, allowing homeowners to purchase homes.  The plans are to delist their shares from the New York Stock Exchange.

The companies' regulator, the Federal Housing Finance Agency, said Wednesday that it expects Fannie Mae and Freddie Mac shares to trade on the Over-the-Counter Bulletin Board.dfddf

Fannie, Freddie, VA, and FHA have backed almost 97% of home mortgages this year.  In the past it was the folks on Wall Street that hedged their beats but pulled out of the market years ago when they did not have enough liquidity to support the asset.  We soon saw the tightening of the mortgage market with Wall Street gone and now mostly left with government sponsored programs which took over Fannie and Freddie in 2008.  If it was not for these programs we would have had a severe crash.

The move to delist the shares isn't a surprise since Fannie has had a $1 average price level for 30 trading days. NYSE rules require a company to take action to boost its share price or delist.

Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Hi Christine,

Thanks for the post. Have a good day.

Jun 16, 2010 03:10 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Christine, thanks for sharing this important news.  

Jun 16, 2010 03:28 AM
Vic Steele
Vic Steele, Broker CA DRE 01349863 - Anaheim Hills, CA

Does that make Fannie and Freddie a penny stock - like all of my other stocks?

Jun 16, 2010 03:37 AM
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

I'm not sure whether this is a good thing or a bad thing in the long run Christine.

Jun 16, 2010 04:12 AM
Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant

Patrick & Pamela - Thanks for stopping in.

Vic - lol!!

Malcolm - Usually this is not great news as it does have an impact to what types of institutions would buy the stock now as being on the NYSE is much better.

Jun 17, 2010 02:39 AM