Overview

• The administration plans to sell roughly 5%–15% of Fannie Mae and Freddie Mac in an IPO later this year, targeting about $30 billion in proceeds
• Government estimates place the combined valuation of the two mortgage giants at over $500 billion
• Federal Housing Finance Agency leadership, Treasury officials and major bank CEOs are collaborating on the offering’s design
• No decision has been made on ending federal conservatorship after the IPO given concerns about mortgage rate increases and taxpayer risk
• Both GSEs posted robust second-quarter results, with Fannie Mae reporting $3.3 billion in net income and Freddie Mac earning $2.4 billion in profit