In a post on Truth Social Wednesday evening, May 21, President Donald J. Trump said he’s giving very serious consideration to re-privatizing the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, noting he plans to make a decision on the matter “in the near future.”
The President also noted that the time to do this “would seem to be right.”
“I am giving very serious consideration to bringing Fannie Mae and Freddie Mac public,” the President wrote in his post. “I will be speaking with Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, and the Director of the Federal Housing Finance Agency, William Pulte, among others, and will be making a decision in the near future.”
“Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right. Stay tuned!” President Trump added.
FHFA is the federal agency that oversees Fannie Mae and Freddie Mac, and its Director Bill Pulte in March installed himself as chairman of the boards of both the GSEs, in addition to sweeping out 14 of the companies' board members and dismissing Freddie Mac's CEO, Diana Reid.
Notably, FHFA Director Pulte has expressed some apprehension on removing Fannie Mae and Freddie Mac from conservatorship, pointing to other priorities like improving efficiencies and reducing waste, and testified in a nomination hearing that any such effort should be approached carefully and deliberately.
Even so, Pulte was anything but hesitant about this Truth Social post: just three minutes after the President published his message concerning the GSEs, Pulte reposted it on his X account — and pinned the repost to the top of the account.
Why It Matters
Why should mortgage professionals care about what happens with Fannie Mae and Freddie Mac? Because changes in their operations — such as potential (and very complex) privatization efforts or shifts in their lending guidelines — can significantly impact the mortgage landscape, and the companies play a crucial role in the secondary mortgage market, influencing loan rates, availability, and overall market stability.
For more, check out this article from mortgage industry veteran and NMP Contributing Writer Rob Chrisman, "Always Be Aware Of News About Fannie Mae And Freddie Mac."
