President Donald Trump is seriously considering taking mortgage giants Fannie Mae and Freddie Mac public. These companies have been under government control since the 2008 financial crisis.
Trump announced his intentions on his social media platform, Truth Social, saying the companies are doing well and generating significant cash flow.
He plans to consult with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Federal Housing Finance Agency Director William Pulte before making a final decision.
Fannie Mae and Freddie Mac play a vital role in the U.S. housing market. They buy mortgages from lenders and package them into securities sold to investors.
Together, they support about half of the $16 trillion mortgage market. The government took control of them during the 2008 crisis to prevent economic collapse, placing them under conservatorship.
Privatizing these entities would mark a major change. Republicans have argued that the companies have an unfair advantage because of government backing, while Democrats emphasize their role in supporting affordable housing.
Ending conservatorship would likely require Congressional approval. Some Republicans have suggested selling the government’s stake to help offset tax cuts, though the financial impact is uncertain.
Experts warn that privatization could raise mortgage rates if not handled carefully. Treasury Secretary Bessent has said the key factor for releasing Fannie and Freddie is ensuring mortgage rates do not increase. The Federal Housing Finance Agency’s director also stresses that any move must prioritize market stability and affordability.
This consideration comes amid concerns about the federal deficit and ongoing debates over housing market policies. Trump’s announcement signals a potential shift in U.S. housing finance policy, but the outcome remains uncertain as discussions continue.
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