Shareholder Jon Oksenholt of Oksenholt Capital Management has outlined a plan to place Fannie Mae and Freddie Mac under a new Texas holding company, U.S. Financial Technology and Mortgage Corp.
Shareholder Jon Oksenholt of Oksenholt Capital Management has proposed a plan that would place Fannie Mae and Freddie Mac under a new Texas holding company as an alternative to the long-running debate over how to end the conservatorships of the government-sponsored enterprises (GSEs).
His plan would create one publicly traded security — U.S. Financial Technology and Mortgage Corp. (USFTMC) — that would sit above two separately chartered mortgage guarantors and a shared mortgage technology platform.
Under the proposal, the GSEs would remain intact as separately capitalized subsidiaries with their current charters, guaranty businesses and affordable housing missions. Their joint venture, U.S. Financial Technology LLC (U.S. FinTech), operator of the Common Securitization Platform (CSP), would remain jointly owned and become the core of a governed commercial data and technology platform.
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“I believe this structure would create more value without dismantling what already works,” Oksenholt said in a statement. “Fannie and Freddie keep their charters, their capital and their competitive roles. U.S. FinTech gets room to become a much more valuable commercial business, and investors get one security that reflects the value of the whole platform.”
Oksenholt has recently challenged another GSE shareholder — Bill Ackman of Pershing Square Capital Management — for assigning a “three-turn” multiple discount to Freddie versus Fannie, even though the companies share the same regulator, business mix and core housing mission.
Oksenholt Capital, which has more than $1.3 billion under management, has disclosed more than 1 million shares of Fannie and Freddie, including about 700,000 shares of Freddie’s common stock and positions in other GSE securities.
‘Capital reset’ assumption
Oksenholt pitches his plan as an alternative to a “conventional” exit from conservatorship, which he said would leave investors with two separate GSE equities and an under-monetized technology platform.
It also avoids a full merger, which he believes would face higher legal hurdles because the enterprises are separately chartered by Congress.
Instead, it imports the logic of the CSP and Uniform Mortgage-Backed Security — shared infrastructure and separate guarantors — into the ownership layer.
The plan cites an upfront equity value of roughly $500 billion for the combined platform and a path to $1 trillion “through higher normalized earnings, realized synergies, expanded U.S. FinTech earnings and a higher consolidated valuation multiple,” according to the paper.
The proposal assumes a “capital reset” to address the senior Preferred Stock Purchase Agreements (PSPAs), warrants and junior preferred shares under the U.S. Department of the Treasury and the Federal Housing Finance Agency (FHFA) agreements.
It also anticipates a primary capital raise at the Texas entity, with proceeds directed toward meeting capital requirements and a release from conservatorship only after agreed-upon capital and PSPA conditions are satisfied.
The plan lands as the Trump administration continues to weigh its options. In June, amid the appointment of FHFA Director Bill Pulte to temporarily lead the nation’s intelligence agencies, President Donald Trump said his administration was still considering a public offering of shares in Fannie and Freddie.
