President Donald Trump is advancing plans for a historic initial public offering (IPO) of government-owned mortgage giants Fannie Mae and Freddie Mac. The administration believes selling up to 15% of shares could generate $30 billion, making it the largest IPO in history.
Placed under federal conservatorship during the 2008 housing crash, Fannie and Freddie guarantee 70% of U.S. mortgages and play a central role in maintaining market liquidity.
The Trump administration is preparing to sell shares of Fannie Mae and Freddie Mac in an offering that could start as early as this year, the Wall Street Journal reported https://t.co/AecBee0hVP
— Bloomberg (@business) August 8, 2025
Trump has long sought to return the firms to private ownership, renewing the effort in his second term. CNN reported that discussions with Wall Street leaders, including JPMorgan's Jamie Dimon and Bank of America's Brian Moynihan, have intensified.
Supporters say privatization would reduce government debt and restore market efficiency. Critics warn it could increase mortgage costs for Americans and disproportionately benefit hedge fund investors.
Trump aiming for IPOs of Fannie Mae, Freddie Mac this year — valuing firms at $500B combined: report https://t.co/s812fjEyh1 pic.twitter.com/HeogvRAGJo
— New York Post (@nypost) August 8, 2025
Final decisions are pending, but the move marks a significant step toward reshaping America's housing finance system.
Related:
TIPP Staff
