Fannie, Freddie seek bids from prospective financial advisers

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WASHINGTON — Fannie Mae and Freddie Mac said Monday they would begin the process of hiring financial advisers to assist the government-sponsored enterprises in creating blueprints to boost capital with the goal of exiting conservatorship.

In February, the Federal Housing Finance Agency hired the investment bank and financial services company Houlihan Lokey as its financial adviser to counsel the agency on steps to oversee Fannie and Freddie’s efforts to build capital and eventually return to the private market.

Now, Fannie and Freddie will both issue a request for proposals as part of an effort to hire their own advisers, the companies said.

The companies that Fannie and Freddie hire as part of the process will advise the GSEs on capital considerations, business plans, valuations, market impacts and timing and alternatives to raising capital. They “may ultimately play a role in any potential recapitalization transactions in the future,” Freddie Mac said in a press release.

“Even as we work to stabilize the housing markets during this unprecedented pandemic, Freddie Mac has remained focused on exiting conservatorship responsibly,” Freddie Mac CEO David Brickman said.
“Even as we work to stabilize the housing markets during this unprecedented pandemic, Freddie Mac has remained focused on exiting conservatorship responsibly,” Freddie CEO David Brickman said.

“Even as we work to stabilize the housing markets during this unprecedented pandemic, Freddie Mac has remained focused on exiting conservatorship responsibly,” Freddie CEO David Brickman said in the release. “Today we begin the competitive selection process for a financial advisor that will ultimately facilitate our return to full private capital ownership. This is a significant milestone, and we look forward to making a thoughtful selection quickly.”

Hiring a financial adviser is an “important milestone” in Fannie’s goal to prepare for a transition out of conservatorship, CEO Hugh Frater said in a press release.

“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,” Frater said. “Today’s announcement is a significant step on that path, and we look forward to making a timely selection in the competitive process.”

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GSE reform GSEs Housing finance reform FHFA Fannie Mae Freddie Mac Houlihan Lokey
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