Trump considers taking Freddie Mac, Fannie Mae public

John Harney and Patrick Clark, Bloomberg News on May 21, 2025

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President Donald Trump said Wednesday evening that he was “giving very serious consideration” to taking the mortgage giants Freddie Mac and Fannie Mae public after more than a decade of being under government oversight.

“Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right,” Trump wrote on his Truth Social platform. “Stay tuned!”

He added that he would consult with Treasury Secretary Scott Bessent along with Commerce Secretary Howard Lutnick and William Pulte, the director of the Federal Housing Finance Agency, which oversees the Freddie and Fannie, as he comes to a decision.

The companies, which play a crucial role in the market for mortgage-backed securities, have been under conservatorship since they were bailed out by the federal government during the 2008 financial crisis.

Hedge funds and other investors have called for the government to release the two entities from the conservatorship, which could provide a windfall for shareholders — including the government itself.

Trump’s comments came shortly after he met with a group of House conservatives currently holding up his signature tax cut legislation over concerns over the impact on the deficit. A release could help provide billions to assuage concerns among fiscal hawks about the impact to the deficit.

The move could also provide a boon to allies like hedge fund manager Bill Ackman, whose Pershing Square Capital Management has invested in the entities. He’s argued that the two should be released, something that he said would be the “biggest deal in history.”

Yet critics have argued that any such decision comes with some risks, especially over how much of a government guarantee the entities would still have. Investors could become more wary of buying mortgage-backed securities if the government’s backing of Fannie and Freddie is lessened. And if that demand weakens, that could put upward pressure on mortgage rates for homebuyers.

Pulte said in February during a congressional hearing that any effort to release the entities must be “carefully planned” to make sure the housing market remains safe without pressure on mortgage rates. Bessent has also said that plans for Fannie and Freddie would depend on the implications for mortgage rates.

In an interview with Bloomberg Television earlier this month, Pulte said his focus was on “driving performance in the business.”

“I think right now what we’re doing is making sure these businesses are actually functioning as businesses, where people would find them attractive,” Pulte said.

Trump’s message comes as the FHFA is weighing possible staff cuts at the Division of Conservatorship Oversight and Readiness, according to people familiar with the matter.

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(With assistance from Sonali Basak.)

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