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5h ago

Trump Weighs Privatizing Fannie Mae and Freddie Mac After 15 Years of Government Control

The president plans consultations with top officials as he considers ending conservatorship of the mortgage giants, a move that could reshape the U.S. housing market.

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
President Trump attempted to privatize mortgage giants Fannie Mae and Freddie Mac during his first administration, but the effort did not succeed.

Overview

  • President Trump announced he is giving 'very serious consideration' to taking Fannie Mae and Freddie Mac public and will make a decision soon.
  • The companies, which support 70% of U.S. mortgages, have been under government conservatorship since the 2008 financial crisis.
  • Trump plans to consult Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and FHFA Director William Pulte before finalizing his decision.
  • Economists warn that privatization could raise mortgage rates, potentially making homeownership less affordable for many Americans.
  • The move aligns with longstanding conservative goals, including those outlined in the Project 2025 blueprint, to reduce government involvement in housing finance.