Monday, August 25, 2025

Latest

Trump Renews Push to Privatize Fannie Mae, Freddie Mac

President Donald Trump confirmed this week he plans to privatize Fannie Mae and Freddie Mac, moving to end nearly two decades of government control over the mortgage finance giants.

In a Truth Social post, Trump said the US would retain guarantees and presidential oversight of both companies after privatization. Shares of the firms surged more than 40% following his announcement.

“I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the US Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President,” Trump wrote.

The privatization effort faces Democratic opposition and regulatory complexities that have stalled previous attempts. Senate Democratic Leader Chuck Schumer criticized the plan, warning it would benefit investors at the expense of homebuyers.

“Trump’s housing proposal to privatize Fannie and Freddie is yet another economic policy that will upend middle-class Americans looking to buy or refinance a home while helping line the pockets of the wealthy,” Schumer said.

Fannie Mae shares jumped 51% and Freddie Mac surged 42% following Trump’s initial May 21 announcement, reaching their highest levels since 2008. The companies have been under government control since the financial crisis, when they required taxpayer bailouts, but continue to trade on the OTC markets.

Economists warn that privatization could increase mortgage costs. Mark Zandi of Moody’s Analytics estimated it could cost homebuyers an additional $1,800 to $2,800 annually. Fannie Mae and Freddie Mac support roughly 70% of the US mortgage market by purchasing loans from lenders and packaging them as securities for investors.

Senator Elizabeth Warren, D-Mass., criticized any privatization that would “reward Wall Street while driving up housing prices.”

Trump attempted to privatize the companies during his first term but failed to complete the complex process. Treasury Secretary Scott Bessent has said mortgage rate impacts would be the key factor in any privatization decision.

Federal Housing Finance Agency Director William Pulte has said any privatization would require “significant study” of potential impacts on mortgage rates.

The privatization would particularly benefit major investors who have held shares for years. Hedge fund manager Bill Ackman, whose Pershing Square Capital Management owns the largest private stake in Fannie Mae, has advocated for the move.

Ackman called Trump’s announcement encouraging and said he expects the president to “get it done.”

Industry analysts don’t expect any privatization attempt until late 2026 at the earliest, given the regulatory complexity involved. The White House said any actions would be “carefully evaluated in a safe and sound manner,” but provided no timeline or specific details.

Fannie Mae and Freddie Mac were created by Congress to expand homeownership by purchasing mortgages and packaging them as securities. They operated as private companies with government backing until the 2008 crisis.

Both companies have returned to profitability and have paid back their government loans plus dividends. Trump noted they are “throwing off a lot of CASH.”

The privatization push comes as the housing market faces affordability challenges, with mortgage rates near 7% and median home prices at record highs above $400,000. Any privatization plan would require extensive coordination between multiple federal agencies and likely face legal challenges from housing advocacy groups.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

First Majestic Q2 Earnings: Another Record Quarter

Sandstorm Gold Fades Into Royal Gold Merger

Equinox Gold Q2 Earnings: Back On Track

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

US Nears Agreement with Ukraine on Critical Minerals, Trump Says

The United States and Ukraine are close to signing a new strategic agreement on critical...

Tuesday, March 25, 2025, 03:40:00 PM

Trump’s Flip-Flop On Disney Flipping DeSantis

As if the Republican presidential nomination battle isn’t petty enough, former President Donald Trump is...

Tuesday, May 30, 2023, 06:24:00 AM

Sheinbaum Stands Firm Against US Military Presence On Mexican Soil

Mexican President Claudia Sheinbaum firmly rejected a proposal from US President Donald Trump to deploy...

Tuesday, May 6, 2025, 02:59:00 PM

Trump’s Tariff Threat Is Back! 25% Tariff On Mexico, Canada By Feb 1

U.S. President Donald Trump reiterated on Monday evening from the Oval Office his administration’s decision...

Tuesday, January 21, 2025, 07:43:32 AM

Trump Campaign Caught Unaware that It’s Illegal for the Indicted Ex-President to Buy a Gun

The Trump campaign has retracted a claim made on Monday that former President Donald Trump...

Tuesday, September 26, 2023, 02:54:00 PM