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22h ago

Trump Plans to Take Fannie Mae and Freddie Mac Public with Government Backing

Administration officials are weighing public-offering models in conservatorship, with FHFA cautioning that careful planning is essential to prevent upward pressure on mortgage rates.

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
The sun sets behind the Fannie Mae headquarters in Washington. One of the chief concerns of taking Fannie Mae and Freddie Mac private is how it would influence mortgage rates and could increase their costs. (J. DAVID AKE/AP FILE)
Fannie Mae headquarters, as seen in 2008. Photo: Karen Bleier/AFP via Getty Images)

Overview

  • President Trump has pledged that the government will maintain its guarantees for Fannie Mae and Freddie Mac, even as it pursues a public offering.
  • FHFA Director Bill Pulte confirmed that models under review could take the GSEs public even as they remain under federal conservatorship.
  • The Treasury’s $341 billion senior preferred stake and warrants to nearly 80 percent of common equity position the government to monetize its claim before any share sale.
  • Senate Democratic Leader Chuck Schumer warned that privatization could drive up annual mortgage costs by $1,800 to $2,800 for the average household.
  • FHFA rules require the firms to amass more than $300 billion in capital before exiting conservatorship, a threshold likely to trigger large equity issuances and dilute existing shareholders.