The Short Answer
They're essentially the same thing for investment purposes. Both are government-sponsored enterprises. Both were seized by the same agency on the same day in 2008. Both have been enormously profitable since 2012. Both had their profits swept to Treasury under the Net Worth Sweep. Both are overseen by the same conservator (FHFA). Both have the same path to exit conservatorship.
If you're an investor, the question isn't “Fannie or Freddie?” — it's “Do you believe the conservatorship ends?” Because the answer to that question applies equally to both companies. I own preferred stock in both, and I have since 2013.
Side-by-Side Comparison
The numbers. Most rows are identical — which is the whole point.
Net worth and net income figures are approximate based on 2025 annual filings. Both companies' financials are available at fhfa.gov.
The Real Differences (And Why They Don't Move the Needle)
Yes, there are real differences between Fannie Mae and Freddie Mac. Fannie is older (1938 vs 1970), bigger (~$4.3T vs ~$3.2T in total assets), and has more market share (~30% vs ~20% of outstanding mortgages). Fannie traditionally bought from large commercial banks; Freddie served smaller lenders and thrifts. They use different underwriting systems (Desktop Underwriter vs Loan Prospector) and have slightly different loan products.
But for investors, none of this matters.
Both companies are controlled by the same conservator (FHFA). Both are subject to the same Senior Preferred Stock Purchase Agreements with Treasury. Both had their profits swept under the same Third Amendment. Both will exit conservatorship under the same political conditions, on the same timeline, with recapitalization terms set by the same people. The investment thesis is identical.
Size
Fannie is ~35% larger by total assets. More market share, more net income, more net worth. But both are profitable enough to exit.
Customer Base
Fannie: large banks (JPM, BAC, WFC). Freddie: smaller lenders, thrifts, credit unions. In practice, this distinction has blurred significantly.
Same Risk, Same Thesis
Same conservator, same PSPA structure, same political dependency, same path out. If one exits, both exit. If one fails, both fail.
Why I Own Preferred in Both
I hold junior preferred stock in both Fannie Mae and Freddie Mac — 26 series total. FNMAS, FMCCJ, FMCCS, and 23 others. This isn't a hedge; it's diversification within the same thesis. If the conservatorship ends fairly, all junior preferred shares should return to par value regardless of which company issued them.
The preferred shares have structural advantages over common: a fixed par value ($25 or $50), stated dividend coupons that accumulate, and priority in any recapitalization. You can't do an IPO or capital raise while stiffing your existing preferred holders — it would destroy credibility with new investors.
I've had the majority of my net worth in these positions since 2013. I've written over 300 articles about the GSE thesis on Seeking Alpha and published 8 books. This is the trade that defines my investing career — and I own both companies because the outcome for one is inextricably linked to the other.
See my full positions • How to buy preferred stock • The full Fanniegate story
The Shared Conservatorship Story
Both companies share the same conservatorship timeline because the same government actions affected both simultaneously. This is the abbreviated version — for the full 17-year saga, read Fanniegate.
Both seized by FHFA
September 6, 2008 — FHFA places both Fannie Mae and Freddie Mac into conservatorship. Treasury injects up to $200B each via Senior Preferred Stock Purchase Agreements (PSPAs).
Net Worth Sweep begins
The Third Amendment replaces the 10% fixed dividend with a sweep of nearly all quarterly profits. Both companies send hundreds of billions to Treasury over the next decade.
Capital retention starts
Under the Mnuchin-era PSPA amendments, Fannie can retain $25B and Freddie $20B. A first step, but far short of the capital needed for release.
Pulte appointed FHFA Director
Bill Pulte installed as FHFA Director. Engages shareholders publicly on social media about privatization — unprecedented. Bessent confirmed as Treasury Secretary.
Current administration action
Executive order on mortgage credit names FHFA directly. PSPA amendment discussions underway. Political alignment for privatization hasn't been this favorable in 17+ years.
Preferred Stock Comparison
There are roughly 50 series of junior preferred stock across both companies. Here are four of the most widely held series and why they matter. I hold positions in all four.
Par
$25
Coupon
8.25%
Type
Fixed
My largest Fannie preferred position. Highest fixed coupon among Fannie series — if dividends resume, that's $2.0625/share/year.
Par
$50
Coupon
5.81%
Type
Fixed
Larger par value means bigger absolute payout. $50 par × 5.81% = $2.905/year. Popular among institutional holders.
Par
$50
Coupon
Variable
Type
Variable
Variable rate means this benefits from higher interest rate environments. Interesting hedge within the GSE preferred basket.
Par
$50
Coupon
Variable
Type
Variable
Same variable-rate thesis as FMCCS but on the Fannie side. I hold smaller positions in variable-rate series as a rate hedge.
Which do I own the most of? FNMAS is my largest single position — the 8.25% fixed coupon on a $25 par is the highest fixed rate among Fannie series. But I hold 26 series total because diversification within the thesis reduces single-series risk (some series could theoretically be treated differently in a restructuring, though I consider that unlikely). See my full positions for the breakdown.
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For Homebuyers: How Fannie vs Freddie Affects Your Mortgage
If you're here because you're buying a home and want to know whether your loan is backed by Fannie Mae or Freddie Mac — the honest answer is it probably doesn't matter to you either. Here's what you need to know:
Conforming Loan Limits
Both Fannie Mae and Freddie Mac use the same conforming loan limits set by FHFA. For 2026, the standard limit is $806,500 for most of the country, and up to $1,209,750 in high-cost areas. Your loan must be at or below these limits to be purchased by either GSE.
Eligibility & Underwriting
Both accept similar credit scores, debt-to-income ratios, and down payments. Fannie uses Desktop Underwriter (DU) and Freddie uses Loan Product Advisor (LPA). Your lender's system determines which GSE your loan goes to — you typically don't choose.
Mortgage Rates
Your interest rate is determined by your credit profile, LTV, and market conditions — not by whether Fannie or Freddie ends up owning the loan. Both GSEs price their guarantee fees similarly. You won't get a better rate by targeting one over the other.
Who Owns My Loan?
You can look up whether Fannie or Freddie owns your mortgage at fanniemae.com/loanlookup or freddiemac.com/mymortgage. But knowing this rarely changes anything about your payments, refinancing options, or loan terms. Both provide the same borrower protections.
Frequently Asked Questions
Is Fannie Mae the same as Freddie Mac?
No, they are separate companies with different histories and tickers. Fannie Mae (FNMA) was founded in 1938 and Freddie Mac (FMCC) in 1970. However, they serve essentially the same function — buying mortgages from lenders, packaging them into mortgage-backed securities, and guaranteeing them against default. Both are government-sponsored enterprises (GSEs), both have been in FHFA conservatorship since 2008, and both face the same path to exit. For investors, the thesis is functionally identical.
Which is bigger, Fannie Mae or Freddie Mac?
Fannie Mae is larger by most measures. Fannie Mae has approximately $4.3 trillion in total assets versus Freddie Mac's $3.2 trillion. Fannie's 2025 net worth is roughly $100 billion versus Freddie's $79 billion. Fannie guarantees about 30% of outstanding U.S. mortgages while Freddie guarantees about 20%. Together they back roughly half of all American home loans.
Can I invest in Fannie Mae stock?
Yes. Fannie Mae common stock trades on the OTC market under the ticker FNMA. Preferred shares trade under tickers like FNMAS, FNMAJ, FNMAK, and others. You need a brokerage that supports OTC trading — Interactive Brokers, Fidelity, and Charles Schwab all work. Robinhood does not support most OTC stocks. Freddie Mac trades similarly under FMCC (common) and FMCCJ, FMCCS, etc. (preferred). These are high-risk, binary, politically-driven investments. Do your own research.
What happens if Fannie Mae goes public?
If Fannie Mae exits conservatorship and goes public (IPO or secondary offering), the impact depends on the recapitalization structure. Junior preferred shares would likely be honored at or near their $25 or $50 par values with accumulated dividends reinstated — you can't do a capital raise if you've stiffed existing preferred holders. Common shareholders face significant dilution risk from Treasury's 79.9% warrants. The same logic applies to Freddie Mac, and any exit plan will almost certainly cover both companies simultaneously.
Is FNMA a good stock to buy?
I am not a financial advisor and this is not financial advice. I have held GSE junior preferred shares (not common) since 2013 with the majority of my net worth on the line. I believe the risk/reward is asymmetric for preferred shares because of their defined par value and structural priority. Common stock carries dramatically more dilution risk. The investment is binary and politically driven — it depends almost entirely on decisions by Treasury, FHFA, and the White House. I have been wrong about the timeline for over 12 years. Proceed with extreme caution and do your own research.
What is the difference between Fannie Mae and Freddie Mac preferred stock?
Both companies issued junior preferred stock before the conservatorship, and all preferred dividends have been suspended since 2008. Fannie Mae has approximately 20 series (FNMAS, FNMAJ, FNMAK, etc.) while Freddie Mac has approximately 30 series (FMCCJ, FMCCS, FMCCK, etc.). Key differences are par value ($25 or $50), coupon rate (ranging from ~4% to ~8.75%), and whether the rate is fixed or variable. The investment thesis is the same for both: if conservatorship ends fairly, these shares return to par plus accumulated dividends.
Important Disclaimer
This page is for educational and informational purposes only. It is not financial advice, investment advice, or a recommendation to buy or sell any security. Glen Bradford holds positions in Fannie Mae and Freddie Mac junior preferred stock and has a direct financial interest in the outcome of the conservatorship. Investing in GSE securities carries significant risk, including the possibility of total loss. Always do your own research and consult a qualified financial advisor before making any investment decisions.
I Document Every Trade — Even the Losses
Options record: 1W-8L. Net worth: 100% GSE preferred. Get the unfiltered updates.
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