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10h ago

Trump Weighs Privatization of Fannie Mae and Freddie Mac

The president announced plans to consult top officials as he considers ending government control of the mortgage giants for the first time since 2008.

A man walks through a plaza at the new Fannie Mae headquarters in Washington, U.S., October 4, 2022. REUTERS/Kevin Lamarque/File Photo/File Photo
U.S. President Donald Trump speaks in the Oval Office at the White House on May 20, 2025, in Washington, DC.
President Donald Trump gestures as he departs after hosting the 2025 NCAA Champion, University of Florida men's basketball team

Overview

  • President Trump stated he is giving 'very serious consideration' to taking Fannie Mae and Freddie Mac public, potentially ending their 17-year government conservatorship.
  • The president will consult Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and FHFA Director William Pulte before making a final decision.
  • Economists warn that privatization could lead to higher mortgage rates, potentially making homeownership less affordable for Americans.
  • Fannie Mae and Freddie Mac currently support about 70% of U.S. mortgages and are highly profitable, with a potential government windfall of over $250 billion from their listing.
  • Shares of the two firms surged in over-the-counter trading following Trump's announcement, reflecting investor optimism about the potential move.