Overview

• A Wall Street Journal report indicates the offering would cover 5–15% of Fannie Mae and Freddie Mac shares at a combined valuation near $500 billion.
• Shares of both firms jumped more than 20% intraday after news of the potential IPO, their largest gain in over two months.
• President Trump has met with JPMorgan’s Jamie Dimon, Goldman Sachs’ David Solomon and Bank of America’s Brian Moynihan to discuss execution, but no final decision has been made.
• Analysts caution that finalizing capital frameworks and completing all regulatory steps by year-end could prove difficult and heighten execution risks.
• Economists warn that scaling back government guarantees through privatization could raise mortgage costs by $1,800–$2,800 per borrower and strain housing affordability.