Will Changes in the Mortgage Market Impact REITs?

Regulators overseeing Fannie Mae and Freddie Mac announced yesterday that the two would be consolidating some repetitive "back-office" functions. Could this be the beginning of a total consolidation of the two? And could it lead to a phasing out of these two government sponsored giants of the secondary mortgage market, shifting the risk of mortgage-backed security investments to the private sector?

In this video, Motley Fool financial analysts David Hanson and Matt Koppenheffer discuss what this scenario would look like, and how REIT investors could be affected.

One of the most interesting REITs out there today is Annaly Capital. There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? With the Federal Reserve keeping interest rates at historically low levels, Annaly has had to scramble to defend its bottom line. In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy, and as an added bonus, you'll receive a FREE year of key updates and expert analysis as news continues to develop.

The article Will Changes in the Mortgage Market Impact REITs? originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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