Trump renews push to take Fannie Mae and Freddie Mac public

President Donald Trump is pushing to end the government conservatorship of Fannie Mae and Freddie Mac, the two mortgage giants that have been under federal control since the 2008 financial crisis. The move could reshape how Americans borrow to buy homes, and economists warn it could also make mortgages more expensive. Homeowners and buyers have a direct stake in how the plan develops.

Trump has long sought to bring the companies out of conservatorship, a goal he failed to achieve during his first term. In May he said he was working on a public listing for the firms and that the government would keep its guarantees on the loans they back. Days later he described an initial public offering as «not a rush,» suggesting the timeline is uncertain. The companies have traded over the counter since they were delisted in 2010.

The administration has also tied the entities to its affordability agenda. Trump has pointed to the companies as tools for expanding access to housing, and he announced that $4.3 billion in home loans will be made available in Kansas next year. That affordability message is a central part of the broader political argument over the plan, particularly as cost of living remains a major concern for voters.

Supporters of privatization argue that public shareholders would benefit from the companies' value. Hedge fund manager Bill Ackman, whose firm Pershing Square holds stakes in the companies, has pushed for privatization and cited a possible  «$500 billion windfall» from the change. Former Federal Housing Finance Agency official Cassidy has argued that privatization could be carried out without Congress and that the structure of any deal matters greatly.

Not everyone agrees on the path or the outcome. Experts warn that ending conservatorship could push mortgage rates higher. Treasury Secretary Scott Bessent has said a decision is expected in 2027 or 2028, and he has set a test for any plan: there should be no meaningful widening of the spread between mortgage-backed securities and Treasury yields. Bessent has also questioned whether homeowners would actually benefit from a change in the companies' shareholder structure.

Political opposition could complicate the plan. Democrats regained control of Congress by campaigning on affordability, and some lawmakers may resist ending conservatorship now. Representative Maxine Waters opposes a rapid exit without congressional oversight and is running for a committee chairmanship. It remains unclear whether executive action is enough to carry out the change or whether congressional support will be required. With less than 800 days left in Trump's term, the timing of any decision will be closely watched.

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Connor Quincy

Technology Reporter

Connor Quincy covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

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