US President Donald Trump is planning to sell up to 15% of Fannie Mae and Freddie Mac, the government-owned mortgage giants that stabilize America’s home loan market, in an initial public offering (IPO) valued at $30 billion. The White House has yet to finalize plans for the IPO, but if successful, it would be the largest in history.
Trump has been considering privatizing Fannie Mae and Freddie Mac since his first administration, but was unable to make it happen. He recently met with top Wall Street executives to discuss a potential IPO. Many Republicans have advocated for ending government control of the two entities, which were placed under conservatorship during the 2008 financial crisis.
Proponents argue that returning Fannie and Freddie to public ownership could raise money for a debt-ridden government. However, economists warn that privatization could increase mortgage costs for Americans, with one estimate suggesting an additional $1,800 to $2,800 per year. Critics also note that wealthy hedge fund investors stand to benefit from the IPO proceeds at the expense of taxpayers.
Fannie and Freddie guarantee 70% of America’s mortgages and play a crucial role in maintaining the housing market. An IPO would return them to their pre-2008 state as publicly traded companies backed by the US Treasury, which could have significant implications for the mortgage industry and consumers.
Source: https://edition.cnn.com/2025/08/08/business/fannie-freddie-ipo