Michael Burry states the Trump administration controls the future of Fannie Mae and Freddie Mac, per National Mortgage News. The investor, known for predicting the 2008 housing crash, expects a resolution for these government-sponsored enterprises (GSEs) before the current presidential term ends.
The GSEs strengthened their capital positions by retaining earnings. Burry notes that common shareholders currently hold no claim to these funds.
Treasury warrants are set to expire in September 2028. This deadline acts as a primary catalyst for administrative action regarding the status of the mortgage giants.