Fannie-Freddie Oversight Can End Even Under Sanders, Cowen Says

Fannie Mae and Freddie Mac will be able to leave government conservatorship regardless of which candidate wins the 2020 presidential election, according to Cowen.

That should ease investor concerns as Democratic candidate Bernie Sanders gains strength in polls, leading to worries that the mortgage giants “could be nationalized,” analyst Jaret Seiberg wrote in a note. While an exit is unlikely before the November election, the Federal Housing Finance Agency and Treasury Department can take steps this year that should ensure U.S. control ends as planned in 2021, he said.

Fannie’s common shares rose as much as 4.2% on Friday while ...