Fannie, Freddie: A Potential Return to Private Hands

The Trump administration is looking at the possibility of bringing Fannie Mae and Freddie Mac back to the public market. This could happen as early as the end of 2025. The Federal Housing Finance Agency (FHFA) Director William Pulte mentioned this on a social media platform. Pulte believes that the current administration made a wise choice by not taking these companies public during the first term. He thinks that now might be a good time to consider it. He also mentioned that the focus is on managing these companies efficiently and reducing costs. Fannie Mae and Freddie Mac have been under government control since 2008. This happened after they faced significant losses during the subprime mortgage crisis. The goal is to end this long-standing conservatorship and return them to the private sector. The FHFA will likely play a big role in this process. These companies are crucial as they back most of the residential mortgages in the country. Since Trump's election in November 2024, the shares of both companies have seen a massive increase. They have climbed over 700%, and their combined market value is now around $20 billion.