WASHINGTON–President Donald Trump said he will soon decide whether to privatize Fannie Mae and Freddie Mac, the government-sponsored entities that undergird the U.S. home mortgage market. But even if the decision is made to return the companies to private ownership, analysts expect it will be years before any such actual privatization occurs.
“I am giving very serious consideration to bringing Fannie Mae and Freddie Mac public,” Trump posted on his social media website, Truth Social, last week. The president said he would consult with cabinet members and make 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,” Trump posted.
CNN noted, however, that “at a time when mortgage rates remain stubbornly high and home prices keep climbing, some economists have warned that attempts at privatizing Fannie and Freddie could upset the balance in the mortgage market, making it even more expensive for Americans to borrow money to purchase a home.”
Long Discussions
There have long been discussions by both parties, but especially Republicans, of returning Fannie and Freddie to private ownership after the government placed both companies into conservatorship in the wake of the 2008 housing crisis that led to a broader economic crisis.
At the time, the conservatorship was meant to be just temporary.
During his first term in office, Trump sought to remove Fannie and Freddie from conservatorship, but was not successful.
Before 2008, Fannie and Freddie were private companies, with backing from the Treasury Department, even though both were originally created by the government.
Cost to Average Americans
CNN noted that in Mark Zandi, chief economist at Moody’s Analytics, estimated in 2024 that privatization could cost the typical American taking out a new mortgage between $1,800 and $2,800 per year.
Fannie and Freddie are currently controlled by the Federal Housing Finance Agency (FHFA), which has been run by William Pulte since his confirmation in March. At that time, Pulte told CNN that any effort to privatize Fannie and Freddie would need to include “significant study” on what the effort might do to mortgage rates.
Such a move will take time. TD Cowen financial services and housing policy analyst Jaret Seiberg told CNN he did not expect the Trump administration to attempt a spin-off until late 2026 or early 2027.
