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Oksenholt Capital proposes a Texas holding company for Fannie and Freddie

The plan would create a single publicly traded security, U.S. Financial Technology and Mortgage Corp, while keeping Fannie Mae and Freddie Mac as separately chartered subsidiaries with their current guaranty and affordable housing missions.

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HousingWire reports that investor Jon Oksenholt of Oksenholt Capital Management has outlined a proposal to reorganize Fannie Mae and Freddie Mac under a new Texas holding company, U.S. Financial Technology and Mortgage Corp.

Under the plan, the GSEs would remain intact as separately capitalized subsidiaries, preserving their existing charters, guaranty businesses and affordable housing missions, with their shared mortgage technology platform continuing through U.S. Financial Technology LLC, which runs the Common Securitization Platform.

The structure, as described by Oksenholt, would also consolidate ownership into a single publicly traded security, rather than leaving investors with two separate GSE equities.

Oksenholt Capital says it has more than $1.3 billion under management and has disclosed more than 1 million shares of Fannie and Freddie, including about 700,000 shares of Freddie’s common stock, and it positions the plan as an alternative to dismantling the current framework or pursuing a full merger that he expects would face legal hurdles.

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