Fannie and Freddy Mac going public

[VJoe571]

Will long time stock holders of fnma/fmcc finally be rewarded once President Trump lets it go public?

[evilanne]

Maybe, it looks like the fnma/fmcc stocks are gaining in the last year, up 680.5% after they dropped like a rock in 2008 with mismanagement of derivatives resulting in huge government bailouts of financial institutions. We had Foreclosure Moratoriums for over a year during the 2008-2009 Financial Crisis and COVID which is added risk. You may gain by holding on to the stock but it is unlikely they will ever reach levels prior to the financial crisis IMO. Here is an interestng video regarding issue
https://finance.yahoo.com/video/fannie- ... 50216.html

If anything I think IPOs would shift the risk to a a large degree to the investors and next time there may not be any bailout. I'm not sure they fixed underlying issues to prevent reoccurrence of another housing crisis. FNMA/FMCC are still under conservatorship of the federal government.

Note: I purchased a FannieMae foreclosure in 2020 that was a result of a reverse mortgage, although supposedly FNMA/FMCC do not back reverse mortgages. It is the Federal Housing Administration (FHA) that insures reverse mortgages, so I'm not sure how that fits together. The beneficiaries did not want it because it was in pretty bad shape and I could not get a mortgage and had to pay cash because of the repairs needed. Ideally, the property values will increase over time and the sale of the home should cover the amount of the loan and possibly make money (in such case the heir will be more likely pay of the loan and sell the property if the amount is significant) but it can also result in losses.

All stock is risky, but there are too many red flags here IMO.