Fannie Mae and Freddie Mac are looking for financial advisors to help them emerge from conservatorship.
Each of the GSEs announced they will be issuing a request for proposal on Tuesday to “secure a financial advisor that will facility the company’s responsible exit for conservatorship. The advisors will help Fannie and Freddie on everything from capital considerations to business plans to capital raising activities and more.
“Even as we work to stabilize the housing markets during this unprecedented pandemic, Freddie Mac has remained focused on exiting conservatorship responsibly,” David Brickman, Freddie Mac CEO David Brickman said. “Today we begin the competitive selection process for a financial advisor that will ultimately facilitate our return to full private capital ownership. This is a significant milestone, and we look forward to making a thoughtful selection quickly.”
Fannie Mae CEO Hugh R. Frater said, “While we are fulfilling our mission and helping to keep people in their homes during this national emergency, we also remain committed to ensuring a responsible exit from conservatorship. Today’s announcement is a significant step on that path, and we look forward to making a timely selection in the competitive process.”
Fannie Mae said a financial advisor is “an important milestone in meeting Fannie Mae’s 2020 FHFA scorecard objective to prepare a responsible transition plan for a potential exit from conservatorship.”
The Federal Housing Finance Agency placed Fannie and Freddie under conservatorship in September 2008 amid the housing crisis.