The Federal Housing Finance Agency has directed Freddie Mac (FRE) and Fannie Mae (FNM) to delist their common and preferred stocks from the New York Stock Exchange and any other national exchanges. Instead, their stocks will be traded in the over-the-counter market and quoted on OTC Bulletin Board. Trading of shares in Fannie and Freddie was halted pending the news.

Freddie has already notified the NYSE of its intentions to delist. The mortgage company plans to file a form officially notifying the exchange of its removal from listing on or about June 28. The delisting will take effect on or about July 8, 10 days after it files the form.

Similarly, Fannie Mae also notified the NYSE of its intent to delist its common and preferred stocks. Even without the FHFA's intervention, Fannie's delisting was a likely outcome: On Tuesday, the NYSE notified Fannie Mae that the mortgage company no longer met the exchange's continued listing standards for the minimum price of its common stock. Fannie Mae also intends to file its notification form on or about June 28, and expects its delisting from the NYSE and CSE will take effect 10 days later.

In a statement, Fannie Mae said the transition will not affect its ability to "fulfill its mission to provide liquidity and stability to the mortgage market, or its focus on home-retention, foreclosure-prevention, and refinance efforts under the Making Home Affordable Program."