Overview
- FHFA Director William Pulte said the administration is "opportunistically evaluating" a public offering for the two housing finance companies, with timing possibly by the end of 2025.
- Pulte noted that President Trump declined to pursue privatization in his first term but is now reassessing the option.
- Fannie Mae and Freddie Mac have been in federal conservatorship since 2008 after the subprime mortgage crisis, and together they hold more than $7 trillion in assets.
- OTC shares rose on Monday, with Fannie Mae up 7.77% to $11.47 and Freddie Mac up 4.30% to $10.68, following the director’s comments.
- No offering terms or decisions have been announced, and the outcome will hinge on details such as the structure of any deal and treatment of the government’s senior stake.