Michael Burry is retaining his stakes in Fannie Mae and Freddie Mac despite warning that elevated mortgage rates are placing renewed pressure on the U.S. housing market. The comments came after the Federal Housing Finance Agency aligned Fannie Mae's private mortgage insurance cancellation rules with Freddie Mac's, allowing servicers to proactively contact eligible borrowers. FNMA fell 9% and FMCC dropped 8% during the session, while shares of MGIC Investment, Enact Holdings, Essent Group and Radian Group also declined. Burry said the policy change may signal that a resolution to the enterprises' conservatorship is not imminent, but he continues to see substantial potential value in the common shares because of the Treasury Department's $350 billion senior preferred claim. Mortgage rates, existing-home sales and new-home prices have all shown signs of renewed strain, although Burry said he does not expect a repeat of the global financial crisis driven by housing.