Announcement Represents Significant Milestone for the Company, Housing Finance System
WASHINGTON, DC – May 18, 2020 – Fannie Mae (FNMA/OTCQB) today announced that it will issue a request for proposals to hire an underwriting financial advisor who will assist in developing and implementing a plan for recapitalizing and responsibly ending its conservatorship. The financial advisor will work closely with the company and FHFA to consider business and capital structures, market impacts and timing, and available capital raising alternatives, among other items.
“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,” said Hugh R. Frater, Chief Executive Officer, Fannie Mae. “Today’s announcement is a significant step on that path, and we look forward to making a timely selection in the competitive process.”
Engaging 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 support of private capital will contribute to increasing the resiliency of the housing finance system.