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2d ago

Trump Confirms U.S. Guarantees as He Considers Privatizing Fannie Mae and Freddie Mac

The promise addresses market concerns over mortgage rates as officials face the challenge of unwinding complex Treasury support agreements.

A man walks through a plaza at the new Fannie Mae headquarters in Washington, U.S., October 4, 2022. REUTERS/Kevin Lamarque/File Photo
U.S. President Donald Trump delivers remarks at the annual National Memorial Day Observance in the Memorial Amphitheater at Arlington National Cemetery in Arlington, Virginia, U.S., May 26, 2025. REUTERS/Ken Cedeno
Fannie Mae headquarters, as seen in 2008. Photo: Karen Bleier/AFP via Getty Images)
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Overview

  • On May 27, President Trump declared on Truth Social that the government will maintain its implicit guarantees for Fannie Mae and Freddie Mac.
  • His announcement builds on a May 21 proposal to return the mortgage giants to private control after more than 16 years in federal conservatorship.
  • Together, Fannie Mae and Freddie Mac support about 70 percent of U.S. mortgages, playing a central role in housing market liquidity.
  • Economists warn that removing or altering the federal backstop could drive up mortgage rates and worsen affordability.
  • Regulators must now detail how they will revise the Senior Preferred Stock Purchase Agreements that underpin Treasury’s financial support.