Fannie and Freddie’s stock has fallen rather dramatically over the last month or so, and I am curious what impact this may have on the New York Attorney General Andrew Cuomo’s Home Valuation Code of Conduct.
My gut tells me that as long as the GSE’s are in danger of being nationalized by the federal government, Cuomo is going to sit on the sideline and do nothing. My guess is that Andrew Cuomo will wait until after Fannie and Freddie stabalize, before moving forward on any type of agreement. At this point, the GSE’s have much bigger concerns than the Home Valuation Code of Conduct, and Cuomo isn’t going to risk doing anything that may dramatically influence Fannie and Freddie’s stock price. If he pushes forward on the Agreement, and then subsequently the federal government is forced to take over Fannie and Freddie, the finger will likely be pointed at Cuomo. I just don’t think this is something he is willing to risk.
I want to emphasize that this is total speculation on my part. And I have no inside knowledge as to how the Cuomo agreement is moving forward.