Federal National Mortgage Association (FNMA) Regains Momentum: How to Trade in March

The executives at United States mortgage financing giant Federal National Mortgage Association  (OTC: FNMA) expect the company to be out of government conservatorship and that is one of the reasons behind the growing momentum in its stock.

Federal National Mortgage Association (FNMA) Regains Momentum: How to Trade in March

In this sort of situation, it is important for investors to keep an eye on the news wires about developments surround Fannie Mae. Last month, the company announced its 2020 fourth-quarter results and managed to clock net income of as big as $4.6 billion.

In addition to that, the net worth of the company also soared to $25 billion as 2020 proved to be a year in which the company’s mortgage volumes hit historic highs. In addition to that, the latest amendments made to the agreements with the Federal Housing Finance Agency and the Department of the Treasury could pave the path for getting out of government conservatorship. The new amendments are going to allow Fannie Mae to keep hold of more of its earnings. These are all key developments and could prove to be a long-term boost for the stock as well.

Jack Dawkins

Finance and Tech Contributor