Overview

• The White House has met with JPMorgan Chase, Bank of America, Goldman Sachs and Citigroup to pitch underwriting roles for a potential $30 billion-plus share offering of the mortgage giants.
• Unnamed Wall Street bankers warn that Fannie Mae and Freddie Mac’s heavy debt burdens and the likelihood of ongoing taxpayer backstops make a swift recapitalization daunting.
• Housing economists caution that removing the GSEs’ implicit government guarantee could push mortgage costs higher and tighten credit availability, particularly in an economic downturn.
• Treasury Secretary Scott Bessent says the administration aims to maximize taxpayer returns while keeping mortgage spreads in check but has yet to detail how a new federal backstop would function.
• Legal analysts and congressional aides indicate that authorizing the sale of government-held stakes may require explicit legislation, making a late-2025 IPO unlikely.