Trump Weighs Record-Breaking IPO of Fannie Mae and Freddie Mac

President Donald Trump and his economic team are exploring a massive initial public offering of Fannie Mae and Freddie Mac, the two government-owned mortgage companies that underpin much of the U.S. housing market.

According to a senior administration official, the plan — first reported by the Wall Street Journal — could involve selling up to 15% of the companies’ shares, potentially raising $30 billion. That would make it the largest IPO in history.

Trump previously attempted to end the companies’ government conservatorship during his first term, a status they have held since the 2008 financial crisis. At the time, the U.S. Treasury took control to prevent collapse during the housing market crash. Government control was intended to be temporary, but Fannie and Freddie have remained under federal oversight for nearly 17 years.

The president has met with major Wall Street leaders in recent weeks, including JPMorgan’s Jamie Dimon, Goldman Sachs’ David Solomon, and Bank of America’s Brian Moynihan, to discuss the potential offering. Proponents argue the companies are now financially strong enough to stand on their own, and that a public offering could generate much-needed revenue for the debt-laden federal government.

Critics, however, warn that privatizing the mortgage giants could increase borrowing costs for homebuyers. Moody’s Analytics Chief Economist Mark Zandi estimated in 2024 that privatization could raise annual mortgage costs for the average borrower by $1,800 to $2,800. Others point out that hedge funds with large stakes in Fannie and Freddie could be among the biggest beneficiaries.

Fannie Mae and Freddie Mac guarantee about 70% of all U.S. mortgages. While they don’t originate loans, they buy mortgages from lenders, repackage them for investors, and help keep money flowing through the housing market. Their role has been key in sustaining the availability of 30-year fixed-rate mortgages.

An IPO would return the companies to their pre-2008 status as publicly traded, Treasury-backed entities — a move supporters see as a step toward reducing government involvement in the housing market, and opponents view as a risky shift that could unsettle mortgage affordability.

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