Trump Considers Making Fannie Mae and Freddie Mac Public Entities Again
By Jasper Ward
WASHINGTON—President Donald Trump stated on Wednesday that he plans to make a decision soon regarding the potential initial public offering of mortgage financing companies Fannie Mae and Freddie Mac. He mentioned that he is seriously considering this move.
On a posting to Truth Social, Trump stated that he plans to converse with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Federal Housing Finance Director William Pulte.
“Fannie Mae and Freddie Mac are performing exceptionally well, generating substantial cash flow, and now might be an opportune moment,” Trump stated, without offering additional information.
Fannie Mae and Freddie Mac, functioning as profit-driven companies owned by private stakeholders, were established by the U.S. Congress with the aim of expanding the nationwide housing loan sector by purchasing mortgages from various lenders and redistributing them in the form of mortgage-backed securities.
In 2008, when the housing market crashed, Fannie Mae and Freddie Mac experienced massive financial setbacks. To prevent severe damage to the U.S. economy, these entities were put into conservatorship through the establishment of the new Federal Housing Finance Agency.
Earlier efforts to free these organizations from governmental oversight, which included initiatives during Trump’s first term as president, did not achieve success.
In February, Bessent stated that the release of Fannie and Freddie from conservatorship would hinge on how mortgage rates were affected.
“In an interview with Bloomberg, Bessent stated that the primary focus regarding the release of Fannie Mae and Freddie Mac is any research or indication suggesting that mortgage rates might increase,” she explained.
(Reported by Jasper Ward; Edited by Donna Bryson and Leslie Adler)