The stock is down 3.8% after reports that President Donald Trump is considering a deal to sell his flagship home and the Federal Housing Finance Agency is expected to approve it.
But the stock is up almost 20% over the past two weeks and is currently trading near a five-year high.
The company has posted double-digit annualized growth for four consecutive quarters, and investors are buying into the company’s prospects.
“The Trump Administration’s proposal to sell off Fannie Mae and Freddie Mac would be the first time in history that a U.S. government entity was sold in this way,” the stock price index tracker S&P Dow Jones Indices said.
“The stock would also be the biggest one-day loss in history for a single stock.”
The government-sponsored enterprises (GSEs) that finance mortgages are the bedrock of the U.C.F.S., which helps to provide homeowners with the financial safety that comes with owning their own home.
Fannie and Freddie have both seen massive losses in recent years.
In 2016, Fannie, which runs the mortgage servicing business, lost $2.5 trillion in its portfolio.
In 2017, FHFA’s losses topped $1 trillion.
Trump is trying to sell the agency, which oversees $700 billion in mortgage-backed securities, and a majority of its assets.
He said during a speech in November that he would consider a deal if he could find an investor willing to buy the mortgage business for $10 billion.
“If I can get that deal done, I’m gonna sell Fannie,” Trump said at the time.
“And I would sell FHRA too, I wouldn’t mind if Fannie goes down.”
But the FHSA said on Tuesday that it does not currently plan to sell FHA.