Oksenholt Capital Publishes USFTMC Transaction Blueprint for Fannie Mae, Freddie Mac & U.S. Financial Technology
Follow-up paper addresses transaction mechanics, mortgage rates, competition, Treasury’s capital structure & U.S.
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Oksenholt Capital Management LLC today published USFTMC: One Parent, Two Charters – A Transaction Blueprint & Call to Action for Fannie Mae, Freddie Mac & U.S. Financial Technology, a follow-up to its August 25 white paper proposing a publicly traded parent over Fannie Mae and Freddie Mac.
The follow-up gets into the legal & transaction mechanics, mortgage rates, UMBS liquidity, Treasury’s capital structure and the biggest question raised by a common parent: how Fannie Mae and Freddie Mac keep genuinely competing.
“The more time I have spent on the legal & transaction mechanics, the more confident I have become in the original thesis,” said Jon Oksenholt, founder of Oksenholt Capital Management. “Mortgage rates have to be protected & competition has to be real. The solutions can be built into the deal. It is time to put the solutions hat on.”
Much of the work can be done while the companies remain in conservatorship. FHFA, Treasury, DOJ and the capital markets can work on different pieces at the same time rather than waiting for release to begin.
On mortgage rates, the paper calls for preserving the government support President Trump has said will remain, protecting UMBS fungibility & liquidity and comparing the cost of one larger public parent against two separate recapitalizations. Fannie and Freddie already share the Common Securitization Platform and issue into the same UMBS market while competing for mortgage business. Shared infrastructure & competition already coexist.
Oksenholt’s position on Treasury’s Senior Preferred Stock is that it should be deemed repaid in full or, at a minimum, the enormous payments already made to Treasury should be credited against it. He does not propose converting the Senior Preferred into common equity.
Under USFTMC, Fannie Mae and Freddie Mac would remain separately chartered, separately capitalized & separately managed, with separate underwriting, pricing, credit policy, products, lender relationships and business plans. The parent shouldn’t decide who wins a loan. Fannie and Freddie should. Functions that do not determine who wins mortgage business could be shared where it saves money without weakening competition.
The paper also treats U.S. Financial Technology as a business opportunity, not just mortgage-market plumbing. Oksenholt believes the Common Securitization Platform can support a much larger data, risk & analytics business while remaining neutral between Fannie Mae and Freddie Mac.
“USFTMC is the structure I would choose, but there are dozens & dozens of ways to solve for this,” Oksenholt said. “Conservatorship by its nature is temporary, yet this one has lasted 18 years, including for retail investors who have owned these securities throughout it. At some point it has to end & it can be done in a way that benefits everyone. It’s time to pick one & move.”
A Follow Up Paper: https://oksenholtcapital.com/equities/fnma-fmcc-fintech-blueprint
Original White Paper: https://oksenholtcapital.com/equities/usftmc/
About Oksenholt Capital Management LLC
Oksenholt Capital Management LLC invests through affiliated entities in publicly traded equities, real estate and select special situations. The firm is led by founder Jon Oksenholt.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260902867797/en/
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