Fannie Mae Shares Surge on Privatization Prospects and Strategic Shifts

Fannie Mae’s stock price continued its upward trajectory, closing yesterday’s session at $10.58, marking a single-day gain of 3.52%. Investor optimism is being fueled by concrete proposals for a major exchange listing and significant operational updates to its credit assessment framework.

Operational Advances and Market Context

Beyond the headline-grabbing stock performance, which has seen the equity soar over 238% from $2.07 to its current level this year, Fannie Mae is implementing key operational changes. The Federal Housing Finance Agency (FHFA) has approved a 3.26% increase in the conforming loan limits for 2026, raising the ceiling to $832,750. This adjustment allows the government-sponsored enterprise to guarantee larger mortgages, a move analysts believe will help stabilize its revenue stream. Industry forecasts project mortgage rates to hover around 6.3% by year-end.

Simultaneously, Fannie Mae, the FHFA, and Freddie Mac have reached a critical agreement regarding the implementation of the new FICO Score 10T credit scoring model. The release of historical data for the system in the coming weeks is viewed as a pivotal step toward enabling more precise risk evaluations for the mortgage giant.

The NYSE Listing Roadmap Gains Prominent Backers

A detailed privatization strategy for Fannie Mae and Freddie Mac, authored by Pershing Square’s Bill Ackman, is central to the current market enthusiasm. The plan outlines a pathway for both entities to transition from trading over-the-counter (OTC) to a listing on the New York Stock Exchange (NYSE). A cornerstone of this proposal involves the U.S. Treasury Department relinquishing its senior preferred shares, which it has held since the 2008 financial crisis.

Should investors sell immediately? Or is it worth buying Fannie Mae?

The ambitious objective is to raise fresh capital through a secondary offering, thereby facilitating an exit from government conservatorship while potentially retaining a form of federal guarantee. While analysts at Keefe, Bruyette & Woods caution about considerable regulatory obstacles, the market’s reaction to the renewed roadmap was decidedly positive.

This thesis has garnered further momentum with support from prominent investors. Michael Burry, famed for his “Big Short” bet, recently identified FNMA as a top investment pick, adding credibility to the privatization narrative.

Challenges and Forward Outlook

Not all developments are favorable. The Mortgage Bankers Association has voiced criticism over a planned 35-40% price hike for credit report services scheduled for 2026, a cost increase that could pressure Fannie Mae’s underwriting processes.

From a technical perspective, the stock is maintaining a stable position above the psychologically significant $10 threshold. The upcoming earnings report scheduled for February 18, 2026, will serve as a key test of whether the company’s fundamental progress can justify its substantial share price appreciation.