Fannie Mae, Freddie Mac stock up more than 20%

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Fannie Mae, Freddie Mac stock up more than 20%
NEW YORK (MarketWatch) - Fannie Mae was up more than 25% and Freddie Mac was up more than 21% on Wednesday as both firms look to return to profitability and will be able to repay the government earlier than expected, said a report. The Federal Housing Finance Agency said the two mortgage lenders will be able to return money to the U.S Treasury after new terms were negotiated, according to reports. Fannie Mae and Freddie Mac, known as government-sponsored enterprises or GSEs, buy mortgages from lenders and repackage them as securities. The strength in the housing market is supporting both firms in their recovery since the financial crisis.