Are Fannie and Freddie Heading for a Slow Down?

LOS ANGELES—The new presidential administration is intent on shaking up the status quo, and it has left many capital markets professionals what that means for Fannie and Freddie. Ed Zimbler, senior managing director at Berkadia Los Angeles, a firm that was just named the leader of Freddie Mac originations in the Western Region, says there is nothing to worry about. The two lending giants will remain market leaders this year, he says, despite changes in Washington.

“I think it is a goal that we would really want to accomplish, obviously. People at Fannie and Freddie are just so driven and intelligent that, at the end of the day, I can't imagine them not being viable,” Zimbler tells GlobeSt.com. “It would be something that is unpredictable for these two guys not to be the leader in the industry at the end of the year. A political desire isn't enough to push them off their game. They are powerhouses, but they also have the personnel to protect their thrones, so they are not easily unseated. It would have to take something out of the box for them not to perform well again this year.”

Zimbler draws a sports analogy around Fannie and Freddie, saying that each organization is stacked with the best players and it is assumed from the start of the season that they will be in the playoffs. That doesn't mean injuries can't happen, but it would need to be something significant to knock them off their game. “I think the one thing that you can appreciate about both organizations is that they are not pretty good at running their operation; they are running incredibly well. This is like Amazon versus Google,” he says.

While there are always surprises, Zimbler says that the talent at both Fannie and Freddie has likely secured the agencies throne for another year. “They are hiring the best and the brightest. The talent and capability of these groups is incredible, and they continue to be cutting edge and come up with new programs as the market changes,” Zimbler explains. “There isn't any other financial institution that is so superlative in finding out if they are answering the client's needs. They are constantly are revising their mission throughout the year based on market conditions and what markets need help. It is there relentless attitudes that have made them so relentless and so powerful.”

LOS ANGELES—The new presidential administration is intent on shaking up the status quo, and it has left many capital markets professionals what that means for Fannie and Freddie. Ed Zimbler, senior managing director at Berkadia Los Angeles, a firm that was just named the leader of Freddie Mac originations in the Western Region, says there is nothing to worry about. The two lending giants will remain market leaders this year, he says, despite changes in Washington.

“I think it is a goal that we would really want to accomplish, obviously. People at Fannie and Freddie are just so driven and intelligent that, at the end of the day, I can't imagine them not being viable,” Zimbler tells GlobeSt.com. “It would be something that is unpredictable for these two guys not to be the leader in the industry at the end of the year. A political desire isn't enough to push them off their game. They are powerhouses, but they also have the personnel to protect their thrones, so they are not easily unseated. It would have to take something out of the box for them not to perform well again this year.”

Zimbler draws a sports analogy around Fannie and Freddie, saying that each organization is stacked with the best players and it is assumed from the start of the season that they will be in the playoffs. That doesn't mean injuries can't happen, but it would need to be something significant to knock them off their game. “I think the one thing that you can appreciate about both organizations is that they are not pretty good at running their operation; they are running incredibly well. This is like Amazon versus Google,” he says.

While there are always surprises, Zimbler says that the talent at both Fannie and Freddie has likely secured the agencies throne for another year. “They are hiring the best and the brightest. The talent and capability of these groups is incredible, and they continue to be cutting edge and come up with new programs as the market changes,” Zimbler explains. “There isn't any other financial institution that is so superlative in finding out if they are answering the client's needs. They are constantly are revising their mission throughout the year based on market conditions and what markets need help. It is there relentless attitudes that have made them so relentless and so powerful.”