If you're a shareholder of Fannie Mae or Freddie Mac, you probably felt a roller coaster of emotions after reading the Supreme Court's ruling in Collins v. Fannie Mae is a highly speculative and risky investment, but it also offers huge upside potential for investors who are willing to take a longshot bet on housing reform. This scenario depends on several factors, including the outcome of ongoing litigation, the actions of the Biden administration and Congress, and the state of the housing market. However, there is a chance that Fannie Mae could be released from conservatorship and recapitalized as a private company, which would unlock tremendous value for its common and preferred shares. Its preferred stock trades at a fraction of its par value. The company's common stock trades at around $.50 per share, down from over $60 before the crisis.

Since then, Fannie Mae has repaid its bailout funds with interest and generated billions of dollars in profits for the government, while its shareholders have been largely wiped out. Treasury in exchange for a $187 billion bailout during the financial crisis. It also holds nearly 80% of Fannie Mae's common stock through senior preferred shares issued to the U.S. As a conservator, the FHFA has full control over Fannie Mae's business operations, capital structure, dividend policy, and legal affairs. The GSE operates under the supervision and regulation of the Federal Housing Finance Agency (FHFA), which has been its conservator since 2008. housing market by purchasing and guaranteeing mortgages from lenders.

If you're looking for a high-risk, high-reward investment opportunity, you might want to take a look at Fannie Mae ( OTCQB:FNMA): a government-sponsored enterprise that provides liquidity and stability to the U.S.

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