Fannie Mae Fall Offers Buying Opportunity – Bove

After the Crapo-Johnson bill passed in the  Senate Committee by a 13 to 9 vote, investors reacted negatively, sending shares of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)  down, as common shareholders feared their holdings would be worthless. However, many believe that the bill will never be signed into legislation. Richard Bove notes Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) will be heavily relied upon to restart the slowing housing, and it is unlikely that legislators will cut the GSEs.

Rafferty Capital Markets LLC’s Vice President Richard X. Bove in a recent report...