Trump ‘very seriously' weighs taking Fannie Mae, Freddie Mac public after years of government control
President Trump said he is 'giving very serious consideration' to returning mortgage giants Fannie Mae and Freddie Mac to the private sector — with a massive public offering of stock — after more than a decade in the government's hands.
Analysts have said the move could spark a major windfall for the US government — but also warn it could raise mortgage rates, worsening the nation's housing affordability crisis.
'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!' Trump wrote in a post on Truth Social late Wednesday.
He added that he will make a decision in the near future after speaking with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and William Pulte, who leads the Federal Housing Finance Agency.
5 President Trump speaks at the presidential palace of the United Arab Emirates alongside Howard Lutnick (left) and Scott Bessent (right).
Getty Images
The companies play a key role in the nation's housing finance system, buying mortgages from lenders and packaging them into mortgage-backed securities. Fannie Mae and Freddie Mac have been under a government conservatorship since the 2008 financial crisis, with the US extending lines of credit to the firms, overseeing their operations and owning vast majority stakes in both.
Shares in Fannie Mae, or Federal National Mortgage Association, and Freddie Mac, also known as Federal Home Loan Mortgage Corp, jumped 41.5% and 40.9%, respectively, by approximately 3:15 p.m. ET.
The US government could reap more than $250 billion and erase about $8 trillion in liabilities from the federal balance sheet by selling its stake in Fannie and Freddie, according to estimates from James Thorne, chief market strategist at Wellington-Altus Private Wealth, in a post on X.
'I think it's very likely because they need the money,' Chris Whalen, chairman of Whalen Global Advisors, said on Thursday.
'The reason they're talking about this is they need the cash in order to make their tax cuts and budget reconciliation bill work,' he added.
5 Bill Ackman, founder and CEO of Pershing Square Capital Management, at the Milken Conference in May.
REUTERS
The GOP's spending bill includes significant tax cuts that are expected to increase budget deficits by about $3 trillion over the next decade. The House narrowly approved the bill early Thursday morning, sending it off to the Senate.
Taking Fannie and Freddie public could also benefit Trump allies like billionaire Bill Ackman, whose hedge fund Pershing Square Capital Management has huge stakes in both mortgage firms.
It was reported that he potentially made $1 billion from the investments earlier this year as the stocks soared on hopes that Trump would take them public, according to Barron's.
He reacted to Trump's Truth Social post about taking the firms public with a thumbs-up emoji on Thursday.
John Paulson, the billionaire hedge fund manager behind Paulson & Co who was largely seen as a contender for Treasury secretary under Trump, also owns sizable investments in the mortgage giants.
5 John Paulson, the billionaire hedge fund manager behind Paulson & Co, at the Economic Club of New York.
REUTERS
'The conservatorship was always intended to be temporary so it makes sense that policymakers release them from conservatorship now that reforms are complete,' a spokesperson for Paulson previously told The Wall Street Journal.
'The government will be the biggest winner in a release of [Fannie and Freddie],' the spokesperson continued.
Bond investors, however, have been panicking over the deficit risks in the bill over the past few weeks, sending long-term yields soaring. The 30-year Treasury yield hit 5.068% on Thursday.
And investors could grow more hesitant to buy mortgage-backed securities if the government loosens its control, demanding extra yield as compensation.
5 Shares in Fannie Mae and Freddie Mac jumped on Thursday after President Trump floated the idea of taking them public.
REUTERS
Yields are closely tied to interest rates on mortgages, credit cards and loans, so while the move could mean big profits for the government, it could also bring consumers serious pain in the form of higher rates.
Those rates could potentially jump 0.5% percentage points or more, according to investor surveys cited by Bloomberg.
During a Mortgage Bankers Association's conference earlier this week, Pulte said it was time to get the 'bloated, overweight and obese' mortgage giants Fannie and Freddie 'on the treadmill.'
As for whether the mortgage giants remain in the government's control, that's a move that will be done 'in the best interest of the American people, but ultimately that will be the boss's decision,' Pulte added in a nod to Trump.
5 William Pulte, who leads the Federal Housing Finance Agency, said whether to take the companies public is ultimately President Trump's decision.
Getty Images
In February, Bessent said that the decision to take Fannie and Freddie public depends on mortgage rate implications.
'The priority for a Fannie and Freddie release, the most important metric that I'm looking at, is any study or hint that mortgage rates would go up,' he told Bloomberg.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
9 minutes ago
- CNN
See moment Trump criticized Musk in Oval Office
See moment Trump criticized Musk in Oval Office President Trump said he was 'very disappointed' with Elon Musk, as the tech billionaire and former adviser continues to blast Trump's massive tax and spending cuts package. The bill is estimated to add $2.4 trillion to the deficit over the next decade. Musk responded on X in real-time saying that he never saw the bill before it passed and said the elimination of America's electric vehicle tax incentives has nothing to do with his opposition to Trump's bill. 01:15 - Source: CNN Vertical Politics of the Day 16 videos See moment Trump criticized Musk in Oval Office President Trump said he was 'very disappointed' with Elon Musk, as the tech billionaire and former adviser continues to blast Trump's massive tax and spending cuts package. The bill is estimated to add $2.4 trillion to the deficit over the next decade. Musk responded on X in real-time saying that he never saw the bill before it passed and said the elimination of America's electric vehicle tax incentives has nothing to do with his opposition to Trump's bill. 01:15 - Source: CNN Curtis Yarvin is inspiring a new generation of MAGA CNN's Hadas Gold interviews anti-democracy author Curtis Yarvin about his argument for an all-powerful executive in the White House. 02:24 - Source: CNN DNC Trolls Trump with Taco Truck The Democratic National Committee parked a taco truck outside the RNC headquarters in Washington DC Tuesday, as a way to troll the president over an acronym created by a Financial Times commentator about the president's frequent walk backs and pauses to his tariff's. 00:52 - Source: CNN Musk calls Trump's bill 'disgusting abomination' Elon Musk lashed out at President Donald Trump's agenda bill — which the president is pressuring GOP senators to support — calling it a 'disgusting abomination.' CNN's Kaitlan Collins reports. 00:59 - Source: CNN ICE chief defends agents wearing masks during immigration raids Acting ICE Director Todd Lyons is defending federal immigration agents for wearing masks during raids across the US, citing safety concerns. The tactic has sparked backlash and raised questions about transparency and accountability. 00:58 - Source: CNN Dana Bash presses Trump's budget chief about cancer cuts CNN's Dana Bash presses Office of Management and Budget Director Russ Vought on the Trump administration's proposal to cut non-defense spending by more than 22% — including deep reductions to education, food assistance, and billions in cancer research funding. As Vought defends the cuts and criticizes the NIH, Bash challenges him on the real-world impact to life-saving medical research. 01:35 - Source: CNN Trump reacts to video of Macron's apparent shove from wife President Trump was asked by reporters about the viral video appearing to show French President Emmanuel Macron being pushed by his wife Brigitte as they disembarked from a plane in Vietnam. Macron, at the time, quickly dismissed the video. 00:34 - Source: CNN Trans high school athlete wins events amid controversy A transgender athlete, whose participation sparked a national controversy and a temporary rule change, took first place in two of her three events in the California High School Track and Field Championship. 01:09 - Source: CNN South Carolina voter says 'no' to moving center South Carolina has often bucked the electoral trend – voting for candidates who lost in Iowa or New Hampshire and thus helping pick which candidate will move on to the general election. CNN's Jeff Simon spoke to multiple voters at a Democrat dinner in Columbia, South Carolina about the party's leadership and future. 01:25 - Source: CNN Hegseth warns 'threat China poses is real' US Defense Secretary Pete Hegseth, speaking to Asia's premier defense forum in Singapore, delivered a dire warning to the world: China's designs on Taiwan pose a threat to global peace and stability that requires 'our allies and partners do their part on defense.' While Hegseth made clear that Washington does not seek conflict with China, he stressed the Trump administration would not let aggression from Beijing stand. 00:50 - Source: CNN GOP senator pressed on Medicaid in heated town hall GOP Sen. Joni Ernst faced concerns from town hall attendees over potential cuts to Medicaid and SNAP programs as a result of President Donald Trump's sweeping domestic policy bill, saying at one point, 'Well, we all are going to die,' and insisting that those who are eligible for Medicaid will continue to receive payments. 01:12 - Source: CNN Fareed Zakaria breaks down Trump's tariff battle CNN's Fareed Zakaria breaks down what's going on with President Donald Trump's battle with the Supreme Court over tariffs. 00:58 - Source: CNN President Trump's timeline for things seems to almost always be 'in two weeks' President Donald Trump told reporters it will take about 'two weeks' to determine whether Russian President Vladimir Putin is serious about ending the war in Ukraine. That two week timeline, CNN's Abby Phillip says, is a familiar one. 01:48 - Source: CNN President Trump is on a pardoning spree President Donald Trump used his pardon power to grant clemency to a wave of individuals who had been convicted of crimes that range from public corruption, guns and even maritime-related offenses, according to multiple officials. CNN's Kaitlan Collins reports. 00:53 - Source: CNN Trump responds to Wall Street term 'TACO': Trump Always Chickens Out President Donald Trump was asked about "TACO," an acronym that means "Trump Always Chickens Out," which is used by Wall Street workers for his on-and-off approach to tariffs. Calling it "the nastiest question," Trump defended his tariff policy by calling it "negotiation." 01:13 - Source: CNN Harvard students and faculty speak out against Trump Harvard students and faculty spoke to CNN ahead of commencement as Donald Trump said the university should cap foreign enrollment. The Trump administration has recently sought to cancel $100 million in contracts with the school. 02:03 - Source: CNN
Newsweek
11 minutes ago
- Newsweek
Delta Says Trump's Tariffs Could Impact Millions Of Customers
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Delta Air Lines said Thursday that the Trump administration's tariffs could negatively affect millions of customers, Reuters reported. According to Reuters, the travel giant told the U.S. Commerce Department that in 2023 and 2024, if it hadn't been able to get planes that were made in Canada, Germany and France, it would have been forced to cancel flights impacting as many as 10 million customers. A "similar impact could be expected going forward" if the Trump administration implements new tariffs affecting the airline, according to Reuters. A Boeing 757 (757-200) jetliner, belonging to Delta Air Lines, lands at McCarran International Airport in Las Vegas, Nv., on Sun., Feb. 23, 2020. A Boeing 757 (757-200) jetliner, belonging to Delta Air Lines, lands at McCarran International Airport in Las Vegas, Nv., on Sun., Feb. 23, 2020. Larry MacDougal via AP This story is developing and will be updated as more information becomes available.
New York Post
12 minutes ago
- New York Post
How Trump special envoy's move to bring Tate brothers to US caught president unaware
WASHINGTON — White House special envoy Ric Grenell caught President Trump off-guard when he advocated for the notorious Tate brothers to travel to Florida while awaiting trial in Romania earlier this year, leaving administration insiders frustrated and questioning Grenell's motives. In mid-February, Grenell, 58, approached Romanian Foreign Minister Emil Hurezeanu on the sidelines of the Munich Security Conference and convinced him to release accused sex traffickers Andrew and Tristan Tate into US custody as they await trial on charges including rape and human trafficking in eastern Europe — without notifying anyone else in the administration, according to multiple sources and Hurezeanu's own admission. 'We learned about the Tate brothers after the fact,' a high-ranking White House source told The Post last week. Advertisement Grenell's actions — both in the matter of the Tates and in other delicate situations — exemplify the problems raised by special envoys, who play roles similar to ambassadors and assistant secretaries of state but often do so without the obligation to obey a formal chain of command and while carrying added responsibility as the president's personal representative. 'This was yet another example of Grenell going outside the chain of command to pursue his own goals, rather than the president's,' a source close the the White House familiar with discussions told The Post. 3 President Trump (right) walks with special envoy and interim Kennedy Center executive director Ric Grenell March 17. AP Advertisement On Feb. 27, 11 days after the Munich conference wrapped, the Tates, who were born in the US, touched down in Fort Lauderdale on a private jet. The same day, Trump hosted British Prime Minister Kier Starmer and was asked whether the president's administration had 'pressured' Romania to hand over the accused sexual predators. 'I don't know. You're saying he's on a plane right now?' a visibly confused Trump asked. 'I just know nothing about it. We'll check it out, we'll let you know.' Shortly after, when Starmer spoke about the brothers facing investigation in the United Kingdom, the president said to him, perplexed: 'You're aware? You're aware of this? I didn't know anything about it.' Risky game Advertisement While much of the media scorned Trump's comments, White House officials confirmed the president's surprise and bewilderment — and rounded on Grenell for putting the commander in chief in a tight spot. 'President Trump is on recording saying he know nothing about the Tate brothers' flight to Florida, so why did Ric Grenell even raise the issue with a Romanian official?' a source close the the White House familiar with discussions told The Post. 3 Andrew Tate, left, and his brother Tristan outside a Romanian police station May 21. AP The Tates' release caused bipartisan blowback — with big GOP names like Florida Gov. Ron DeSantis and Sen. Josh Hawley (R-Mo.) as well as conservative media personalities Ben Shapiro and Megyn Kelly speaking out against the White House. Advertisement It also sparked a congressional inquiry by House Judiciary Committee Ranking Member Rep. Jamie Raskin (D-Md.), who penned a letter asking the State Department to what extent the US government was involved in Romanian officials' decision to release the brothers. Almost immediately after the letter — which cc'd Grenell — was sent to the State Department, the envoy called to 'berate' a Raskin staffer, saying 'you're going to ruin my reputation,' according to a person familiar with the conversation. The interaction was first reported in early April by NOTUS. 'The State Department has failed to answer the Committee's questions and address our concerns,' the person said. 'All we have received was a short, non-substantive response from the State Department more than a month after the letter was sent.' While the blowback over the release has died down, the question that has puzzled Grenell's critics remains: Why risk the administration's credibility on Andrew and Tristan Tate? Grenell, a former ambassador to Germany and acting director of national intelligence, has been open about his support for the Tate brothers, whose followers among the far-right include longtime Trump confidant Roger Stone and Paul Ingrassia, the newly appointed head of the Office of Special Counsel. Andrew Tate has similarly expressed support for Grenell, tweeting the day before his release from Romania that the envoy is helping Trump 'sav(e) America along with the entire western world by extension.' Grenell also has extensive experience in eastern and southeastern Europe, dating back to at least his role facilitating peace talks between Serbia and Kosovo during Trump's first term. 'Was this motivated by a personal, political or business interest, or is he just a Tate Brothers fanboy?' asked a former friend of Grenell's. 'Either is a massive red flag.' Advertisement In a comment to the Financial Times in February, Grenell acknowledged his support for the Tates, 'as evident by my publicly available tweets' But he has since scrubbed all posts about the brothers, including a retweet of Stone crediting Grenell for 'securing the release of the Tates.' However, a Grenell associate says he kept up ties with the Tates even after their return, sitting ringside when the brothers made an appearance at the UFC 313 card in Las Vegas on March 8. 'Not Ric's job to make sure State knows' Since the Tate fiasco, Grenell has continued to ruffle feathers in his various roles, sounding a rare discordant note in an administration whose key players seem to be mainly on the same page. Advertisement 'It's like Festivus inside the White House, and the airing of the grievances is heavy on Grenell,' said one source close to President Trump, referencing an episode of the classic sitcom 'Seinfeld.' Last month, Grenell — in an apparent attempt to apply lessons from the Tate incident — briefly mentioned to Trump that he had reached a deal with Venezuelan dictator Nicolas Maduro to return an American detainee, but left key White House and State Department officials without any clue of his foreign dealings, according to senior administration officials. 'State Department was intentionally left in the dark, as was Rubio,' confirmed Tactic Global lobbyist Caroline Wren, who told The Post she helps Grenell with his public relations and worked on the Venezuela initiative with him. 'It's not Ric's job to make sure State knows.' Advertisement 3 Venezuela President Nicolas Maduro speaks to Iranian officials in Caracas last month. via REUTERS Wren did not elaborate on why the department was left out of the loop, but Grenell had asked Maduro to free Air Force veteran Joe St. Clair as a sign that the dictator was willing to work with the Trump administration, multiple sources say. In return, Grenell suggested to Maduro that Trump would extend Chevron's license to import Venezuelan oil — but that was news to the administration, which has consistently supported the president's desire to expire the license May 27, according to senior officials. Some far-right influencers — such as firebrand Laura Loomer and many of Grenell's closest associates, including Wren — say the license should be extended to block China from cornering the Venezuelan oil market. Advertisement When The Post contacted Grenell May 15 to ask whether he was holding discussions with Caracas about extending the Chevron license, Grenell directed another lobbyist — former Rep. Aaron Schock (R-Ill.) — to contact The Post to push the China angle. Schock, who according to Wren also helps Grenell with PR, also consults for South Florida oil magnate Harry Sargeant, whose license to operate his oil-trading company in Venezuela was canceled by Trump's anti-Maduro policy, a former friend of Sargeant's told The Post. Schock did not reply to a request for comment on his association with Sargeant, whom Wren called a 'good friend' she 'talks to all the time.' Sargeant, however, denied that Schock or Grenell were advocating on his behalf. On a more ominous note, law enforcement sources say Grenell's deal with Maduro to return a single detainee could encourage Caracas officials to direct the Tren de Aragua cartel to kidnap more Americans for use as bargaining chips to reduce US sanctions. The FBI has said that the Venezuelan dictator controls the brutal cartel recently listed as a foreign terrorist organization. The same day the Chevron oil license expired, the State Department issued a stark travel warning to Americans, urging them not to visit Venezuela due to risk of wrongful detention, torture, kidnapping and crime. Closer to home, Grenell — who is also president and interim executive director of the Kennedy Center for the Performing Arts — caused another firestorm when he dismissed center vice president Floyd Brown May 28 after Brown refused to disown comments promoting 'traditional marriage' and criticizing the influence of gay staffers in the Republican party. 'The only explanation is the one given to me at the time of my firing: 'Floyd, you must recant your belief in traditional marriage and your past statements on the topic, or you will be fired,'' Brown posted to X May 29. 'Needless to say, I refused to recant and was shown the door. My beliefs are much more common to Biblical Christianity.' As multiple sources pointed out, the firing appeared to run counter to Trump's main reason for appointing Grenell, who is openly gay, in the first place: To rid the DC venue of Diversity, Equity and Inclusion policies. 'From being rebuked on the Chevron license, to his connection to the Tate Brothers, to allegations of firing a Kennedy staffer over Christian beliefs, Ric Grenell keeps finding new and creative ways to embarrass himself and those around him,' a source close the the White House familiar with the situation said. The State Department, Romanian Foreign Ministry, Schock, Grenell and an attorney for the Tates did not respond to requests for comment.
