Fannie and Freddie stocks are now down 41.5 percent and 37.7 percent, respectively, in 2018 and have traded essentially flat since the 2016 election. But Federal Housing Finance Agency Director Mel Watt may soon be out the door following allegations of sexual harassment; Groshans said in a Wednesday note that Watt's potential successor will play a role in the fate of Fannie and Freddie.