The investment bank will help develop the roadmap to free the GSEs from conservatorship
The Federal Housing Finance Agency (FHFA) has chosen Houlihan Lokey Capital to serve as a financial advisor in the government’s plan to end its conservatorship of Fannie Mae and Freddie Mac.
The Los Angeles-based investment bank will “assist in the development and implementation of a roadmap to responsibly end the conservatorships of Fannie Mae and Freddie Mac,” according to the FHFA.
The said roadmap will include business and capital structures, as well as market impacts and timing, and available capital-raising alternatives, among other items.
“Hiring a financial advisor is a significant milestone toward ending the conservatorships of the enterprises," FHFA Director Mark Calabria said. “The next major milestone for FHFA is the re-proposal of the capital rule, which will happen in the near future."
The FHFA said that the contract amount for the first year is $9 million, with options to extend for an additional four and a half years for $45 million.
