Freddie Mac Takes Next Step To Exit Conservatorship

May 19, 2020

Photo credit: Getty Images/Julia Kuznetsova

Freddie Mac has commenced a request for proposal process to secure a financial advisor that will facilitate the company’s exit from conservatorship. The candidate will advise the company on a range of issues, from capital considerations to the company’s business plan, and may ultimately play a role in any potential recapitalization transactions in the future.

“Even as we work to stabilize the housing markets during this unprecedented pandemic, Freddie Mac has remained focused on exiting conservatorship responsibly,” said David Brickman, Freddie Mac’s CEO. “Today, we begin the competitive selection process for a financial advisor that will ultimately facilitate our return to full private capital ownership.”

The candidate for the advisor position will provide strategic counsel and perform a range of tasks to facilitate Freddie Mac’s exit from conservatorship, including assessing the company’s valuation, reviewing its business plan, identifying options for raising capital and evaluating regulatory considerations during a transition period.

Fannie Mae has also issued a request for proposal to hire an underwriting financial advisor to help lead the GSE out of conservatorship. In February, the FHFA agreed to terms with Houlihan Lokey Capital Inc. to serve as its financial advisor during the process of ending the federal conservatorship of the GSEs.

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May 19, 2020

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