US President-elect Donald Trump plans to remove Fannie Mae and Freddie Mac from conservatorship, potentially making them private companies again. Billionaire investor Bill Ackman expects this move in the next two years, with a public listing possible by 2026.
Fannie Mae and Freddie Mac were created to expand home lending and buying home loans from private lenders before repackaging them as mortgage-backed securities. However, when the housing market collapsed in 2008, the companies suffered significant losses and were placed under conservatorship of the Federal Housing Finance Agency to avoid economic catastrophe.
Ackman’s prediction follows recent stock price increases after his post, with Fannie Mae shares rising 18.4% and Freddie Mac shares jumping 18%.
Source: https://www.reuters.com/business/finance/bill-ackman-expects-trump-privatize-fannie-mae-freddie-mac-2024-12-30