GSE reform

Fannie Mae and Freddie Mac's stock were downgraded to "underperform" by KBW as they are currently priced above its expectations.

If the GSEs are privatized with only their current capital levels, respondents indicated risk premiums on MBS would widen by as much as 45 basis points or more.

Analysts agree recent changes to government agreements will end the Fannie Mae and Freddie Mac conservatorships, but it'll likely happen later rather than sooner.

Releasing the GSEs from government conservatorship is on the agenda for the incoming Trump administration. Doing so could threaten the 30-year fixed rate mortgage.

A Congressional Budget Office report updating one from four years ago finds 60% of its 250 scenarios will result in the Treasury getting fully repaid, up from 12%.

Releasing Fannie Mae and Freddie Mac from conservatorship without legislation is very high risk for the shareholders, writes the chairman of Whalen Global Advisors.

President-elect Trump's victory comes with the support of a Republican Congress. Also in November, many states voted on local property tax matters.

The group is calling for the Trump administration to preserve certain features if it picks up where it left off and finishes cutting ties to the Treasury.

Trump's return to the White House is reviving the prospect of preferred stockholders getting some money back after the U.S. took control of the agencies during the 2008 financial crisis to keep the housing market from collapsing.

A former housing regulator confirmed that he anticipates a release from conservatorship would occur if Trump's elected, adding to other signs a plan is brewing.