$FNMA

Michael Burry is shifting his investments in Fannie Mae (FNMA) and Freddie Mac (FMCC) from common shares to junior preferred stock due to concerns about potential 90% dilution from a U.S. Treasury conversion, according to his Substack post. The Treasury's $388 billion senior preferred stock claim could reduce existing shareholders' stakes. Burry also cited bearish chart patterns and sought to realize tax losses on common positions.

Mizuho downgraded Fannie Mae (FNMA) and Freddie Mac (FMCC) to Neutral from Buy, citing delays in privatization and rising mortgage rates.

Regulators and lenders are now allowing VantageScore, a metric by Equifax, Experian, and TransUnion, for mortgage underwriting, challenging FICO's dominance. The FHFA, overseeing Fannie Mae and Freddie Mac, aims to lower mortgage costs and increase affordability. Fair Isaac's stock has fallen about 60% this year. Lenders like Rocket Mortgage and United Wholesale Mortgage are adopting VantageScore, potentially affecting mortgage rates and market dynamics.

Fannie Mae (FNMA) sold nonperforming loans totaling $260M, including 1,217 deeply delinquent loans. The sale also included its 29th Community Impact Pool, with 27 loans worth $5.7M in unpaid principal.

Federal National Mortgage Association (FNMA) completed tender offers, buying back $1.03b of Connecticut Avenue Securities notes. The stock has declined 30% in a month and 60% year-to-date, despite strong 3- and 5-year returns. FNMA's fair value is estimated at $10.50, suggesting a 60% undervaluation, but it trades at a high P/E of 106.4x compared to industry averages.

Michael Burry adjusted his portfolio, identifying Deckers Outdoor (DECK), lululemon (LULU), Fannie Mae (FNMA), Freddie Mac (FMCC), Fiserv (FISV), Sprouts Farmers Market (SFM), Zoetis (ZTS), and MetLife (MET) as vulnerable to tax-loss selling. He swapped DECK for LULU, FMCC for FNMA, and shifted SFM and ZTS into long-term call options. Burry also added put options on MET, citing risks in private credit and equity valuations.

Michael Burry identified six stocks as potential tax-loss sale candidates, including LULU, DECK, FNMA, FMCC, FISV, SFM, and ZTS. He swapped LULU for DECK, exited FNMA for FMCC, and adjusted positions in FISV, SFM, and ZTS. Burry added put options on MET due to concerns about private credit and equity valuations.

Fannie Mae (FNMA) reported results of its tender offers for certain CAS Notes, with $1.026 billion in original principal amount validly tendered. Settlement is expected on October 6, 2026. BofA Securities and Citigroup acted as dealer managers. The press release includes standard disclaimers and forward-looking statements.

Community Home Lenders of America advocates for more credit score competition, including Fannie Mae and Freddie Mac's proprietary scores, alongside FICO and VantageScore. Fannie and Freddie will disclose their scores in MBS disclosures. Rocket Mortgage and United Wholesale Mortgage report VantageScore 4.0 can yield better results for some borrowers. FHFA plans to unify pricing grids for both scoring models. CHLA also pushes for lower credit-score pricing.

Fannie Mae and Freddie Mac reported August multifamily mortgage delinquencies. Freddie Mac's rate hit a 20-year high at 0.64%, up from 0.6% in July. Fannie Mae's rate fell to 0.57% from 0.62% in July. Rising delinquencies may reflect slowing rent growth and increased cost of living, according to Multifamily Dive and Urban Institute research.