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yesterday

Trump Reaffirms Plan to Privatize Mortgage Giants While Preserving Government Guarantees

Officials have not outlined how they will unwind complex federal support agreements or set a timeline for public offerings.

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

  • Trump posted on Truth Social that the U.S. government will keep implicit guarantees for Fannie Mae and Freddie Mac as he pursues their return to public ownership.
  • The two agencies have been under federal conservatorship since 2008 and guarantee roughly two-thirds of U.S. residential mortgages backed by taxpayer support.
  • The administration has not released a formal timetable or detailed proposal for ending conservatorship or launching a public offering of the companies.
  • Senate Democratic Leader Chuck Schumer warned privatization could drive up annual mortgage costs by $1,800 to $2,800 for average families.
  • Privatization would require unwinding complex Senior Preferred Stock Purchase Agreements and deciding how to compensate legacy shareholders, including major hedge fund investors.