I didn't realise Trump wanted to move so qiu8ckjly on this!
The Trump administration is "opportunistically evaluating" a plan to take Fannie Mae and Freddie Mac public, with a potential timeline as early as the end of 2025, according to a statement on Monday from Federal Housing Finance Agency Director William Pulte.
Writing on the platform X, Pulte noted that while President Trump correctly decided against privatising the housing firms during his first term, he is now reassessing the possibility. This move aligns with Trump's goal, which he first mentioned in May, of ending the long-running government conservatorship over the two housing giants.
Fannie Mae and Freddie Mac have been under U.S. control since 2008 after they sustained heavy losses in the subprime mortgage crisis.
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This news will likely trigger a volatile rally in the common (FNMA) and preferred (FMCC) shares of Fannie Mae and Freddie Mac.
Privatisation is the primary event that private shareholders and hedge funds have gambled on for over a decade, as it represents the only path for their equity to regain substantial value. A clear signal from the FHFA director, especially with a potential "end-2025" timeline, would be seen as a major positive catalyst.
However, any sustained gains would hinge on the "opportunistic" terms of the offering and, crucially, how the government's own senior stake is handled.
