NEW YORK (TheStreet) -- Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) are higher today after a coalition of investors in both companies began a move to stop Congress from going forward with a U.S. housing finance reform bill, saying it would deny them of a fair share in any remaining value in the companies.
Fannie Mae's share are up 0.99% to 4.10, while Freddie Mac's shares are up 1.23% to 4.12.
The new tax-exempt group, Investors Unite, said it wants to protect the rights of shareholders in the bailed-out mortgage finance companies. It is holding meetings in Washington and sending dozens of investors to Capitol Hill to promote its cause, Reuters reports.
The group opposes the bill because it would prevent the companies from recapitalizing and compensating shareholders.
Later this month a Senate Banking Committee meeting will focus on a bill that would abolish Fannie Mae and Freddie Mac, replacing them with a new agency to back home loans.
TheStreet Ratings team rates FANNIE MAE as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FANNIE MAE (FNMA) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."