Overview

• The administration has asked major Wall Street banks to submit underwriting proposals for a potential Fannie Mae and Freddie Mac IPO aiming for an initial $30 billion share sale.
• Scott Bessent and FHFA officials stress that any transition must avoid raising mortgage spreads or undercutting the government’s backstop.
• Pimco’s Libby Cantrill and Citigroup strategists warn that privatization could increase 30-year mortgage rates by 0.1 to 0.2 percentage points, adding roughly $600 per year to the average borrower’s cost.
• Market participants caution that complex capital requirements, extensive Treasury claims and the likelihood of congressional review pose formidable barriers to a swift or full exit from conservatorship.
• Billionaire investors such as Bill Ackman and John Paulson continue to lobby for an end to conservatorship, highlighting the tension between taxpayer monetization goals and housing‐market stability.