Donald Trump has announced that he will soon decide whether to make Fannie Mae and Freddie Mac public, stating that it is “very serious consideration” he is giving it.
In a post on Truth Social, the US president mentioned consulting the treasury secretary, Scott Bessent; commerce secretary, Howard Lutnick; and the federal housing finance director, William Pulte, regarding this decision.
He added, “Fannie Mae and Freddie Mac are doing very well, generating significant amounts of CASH, and it seems like the right time. Stay tuned!”
These two companies are essential in the US housing market, collectively supportingaround 70% of US mortgages.
Established by the US Congress, Fannie and Freddie operate as for-profit corporations with private shareholders, aiming to expand the home lending market by purchasing home loans and transforming them into mortgage-backed securities.
The housing market collapse in 2008 led to overwhelming losses for Fannie Mae and Freddie Mac. To prevent catastrophic consequences for the US economy, they became subject to conservatorship by the newly established Federal Housing Finance Agency.
Previous attempts to remove government control of these organizations, including during Trump’s first term, have been unsuccessful.
In February, Bessent stated that the release of Fannie and Freddie from conservatorship would depend on the implications for mortgage rates.
“The top priority for releasing Fannie and Freddie is any indication or study suggesting that mortgage rates would rise,” Bessent said in an interview with Bloomberg.
Reuters contributed to this report
Source: https://www.theguardian.com/us-news/2025/may/21/trump-fannie-mae-freddie-mac
