Bill Ackman to Reveal Strategy for Fannie Mae and Freddie Mac

The prominent U.S. investor is set to outline his plan for the two major mortgage-finance companies later this week.

Summary

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Terms & Concepts
  • Fannie Mae: A U.S. government-sponsored enterprise that provides liquidity to the mortgage market by purchasing and guaranteeing mortgages.
  • Freddie Mac: A U.S. government-sponsored enterprise that buys mortgages and packages them into mortgage-backed securities for investors.
  • Mortgage-backed securities: Financial products created by pooling home loans and selling them to investors, providing funds for lenders to issue more mortgages.