If fed gov't gets out of mortgage business or scales back (the proposed two options), the mortgage unit Countrywide of BAC could become a goldmine. What a 180-degree turn? Countrywide has been a drag on BAC because of foreclosure documentation, but it could turn out to be the best investment BAC could have made, if FReddie/Fannie disappear. The stock price hasn't reflected that good news yet - could easily add 20% just based on that.
Not quite sure how you figure that. The proposed changes will cause mortgages to become more expensive for borrowers, fewer people will be able to afford homes, and existing home prices will continue to decline. How does that help anyone?
Less competrition, higher profit margin. BAC may end up on additional revenue source they hadn't counted on, hopefully replace the debit card fee they lost out. If economy improves, people will always buy homes even if the mortgages are a little more expensive. Overall, BAC will benefit because Freddie/Fannie has a corner on the market and the market is so huge (trillions of dollars worth mortagages).
More mortgage business pushed to the private sector which would benefit anyone in the private sector mortgage business. And how has Fanni and Fredie helped anyone. Any benefit that these GSE provided over the years vanished in the housing collapse. No one benefited even people that purchased their homes 30 years ago got creamed by these government sponsored nightmares.