Why Fannie Mae (FNMA), Freddie Mac (FMCC) Are Higher On Monday

NEW YORK (TheStreet) -- Shares of Fannie Mae (FNMA) and Freddie Mac  (FMCC) are both higher this afternoon, up 8.12% to 3.86, and up 7.32% to 3.81, respectively.

Earlier today it was announced that Bill Ackman's firm, Pershing Square Capital Management, is increasing its stake in Fannie Mae and Freddie Mac to over 11% in each from a combined 9.8% in both firms, according to a CNBC report.

The activist investor's move comes after the Senate Banking Committee announced agreement on legislation to wind down the mortgage financiers. Ackman thinks otherwise and that a wind down is less likely now.

Read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The bill would leave a decision on how to treat their private shareholders to the courts. Its authors, South Dakota Democrat Tim Johnson and Republican Mike Crapo of Idaho, would replace the companies with a new industry financed agency. 

Fannie and Freddie are now profitable and by the end of this month will have sent the Treasury Department $202.9 billion in dividends, CNBC reported.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Why Fannie Mae Will Likely Fall to $0

Why Fannie Mae Will Likely Fall to $0

Why Fannie Mae Will Likely Fall to $0

Why Fannie Mae Will Likely Fall to $0

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise

House Financial Services Chairman Jeb Hensarling Won't Seek Reelection

House Financial Services Chairman Jeb Hensarling Won't Seek Reelection

Mortgage Payments Could Be Hurt by Harvey's Impact on Houston

Mortgage Payments Could Be Hurt by Harvey's Impact on Houston