Freddie Mac, Fannie Mae Hire Financial Advisors to Exit Conservatorship

by Katie Sloan

Washington, D.C. — Freddie Mac and Fannie Mae have hired separate financial advisors to guide the agencies in exiting conservatorship. Freddie Mac has brought on J.P Morgan, and Fannie Mae has hired Morgan Stanley & Co. LLC. Both government-sponsored enterprises (GSEs) are based in Washington, D.C. The Federal Finance Housing Agency (FHFA) became the conservator for both Fannie Mae and Freddie Mac in 2008 during the Great Recession to oversee the lending activity of the agencies. The FHFA helps ensure that Fannie Mae and Freddie Mac are providing counter-cyclical liquidity and support sustainable homeownership and affordable rental housing.

The timeline for the GSEs to exit conservatorship was not specifically disclosed, though FHFA director Mark Calabria says it won’t be before 2024. The FHFA announced Freddie Mac’s and Fannie Mae’s intentions of exiting conservatorship in the 2020 FHFA Scorecard, which was released in October 2019. The Scorecard is a tool used to align the GSEs’ priorities and operations with FHFA’s Strategic Plan for the lenders.

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