Odeon Capital analyst Dick Bove downgraded both Fannie Mae (FNMA) and Freddie Mac (FMCC) to Sell from Hold. The timeline for when the companies are likely to be released from their conservatorships and recapitalized has been extended out by two years, Bove tells investors in a research note, citing comments Wednesday made by Director of Federal Housing Finance Agency's Mark Calabria. Further, the range of Fannie's and Freddie's product offerings has been cut back and their earnings capacity and secular growth rates have been reduced, adds Bove. The analyst notes, however, that the downgrades do not conflict his view that the preferred stocks in these businesses are "very attractive."