Fannie Mae and Freddie Mac

During the financial crisis I decided to venture off and buy both Fannie Mae and Freddie Mac stock which were listed on the NYSE.  They both got delisted and became OTC securities they destroyed people's retirement funds and wealth in the process.  I bought shares at 70 and 80 cents I decided to ride it out and more than doubled my money as a result. The other day they were both in the $6 range and I could have sold them but I am doing this investment as a way to learn how delisted companies as important as these two giants will be handled.  Had both of these mortgage companies been allowed to fail the U.S. would have surely gone into a depression.  I don't advice going overboard with OTC securities they come with more risk than a NYSE or NASDAQ listed stock.  I got the money to invest in these stocks by taking risk why not continue using it to take on more risk.

Mortgage rates for a 30 yr fixed are currently at 4.33% and 3.35% for a 15 yr fixed.  Rates in spring 2013 were at 3.50% for a 30 yr fixed.

Shares of both securities are down due to a bill that would wind down both federally controlled FNMA and FMCC.  On the flip side the chances of the reform bill passing is very small.  Investors are hoping that the dividends paid to the government will eventually go to shareholders and this could send the stock into double digits.