Government sponsored entities Fannie Mae and Freddie Mac could go public by the end of the year. Federal Housing Finance Agency (FHFA) chief William Pulte said that the public offering could take place as early as the end of this year. The social media post by the housing chief also mentioned President Donald Trump’s interest in evaluating this in his second term.
Pulte posted on social media platform X that President Trump had made the right decision of not taking these two governments sponsored entities public during his first term and was “opportunistically evaluating” a public offering that could happen by the end of 2025.
He also said that the agency was focused on running these companies as “a business and taking out costs” and this could lead to an increase in worth “one day.”
In a Truth Social post in May President Trump seemed to indicate that he was working on ending the government’s conservatorship of Fanny Mae and Freddie Mac. Both the mortgage giants have been under federal conservatorship since the financial crisis of 2008.
If Freddie Mac and Fanny Mae go public, the government will be free from future obligations to bail out the two giant mortgage companies. Investors could also gain a lot as they buy stock in the companies.
Both Freddie Mac and Fanny Mae have seen a huge bump in their stock after Trump was elected as the President of the United States. They reportedly have a combined market value of roughly $20 billion. If and when they go public, their market cap could generate billions of dollars for investors and the administration.
Many major banks have reportedly shown interest in managing the IPO of these two American Giants.
When a company goes public, there is a chance that there would be job cuts as well as cost cuts while maximizing profits for investors. Mortgage holders on the other hand are likely to see strict rules, and they may face higher mortgage rates.
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