President Donald Trump on Wednesday said he was giving “serious consideration” to bringing government-sponsored mortgage giants Fannie Mae and Freddie Mac public.
In a Truth Social post, Trump said he would speak with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Federal Housing Finance Director William Pulte about doing so.
“Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right. Stay tuned!” he wrote.
AMERICA’S HOUSING CRISIS: REALTOR.COM SAYS THERE IS A WAY TO SOLVE IT
The move would be a massive one for the housing market, which backs trillions of dollars in mortgages.
Fannie Mae and Freddie Mac have been under federal control since the 2008 financial crisis, and attempts to release them have been unsuccessful, the Wall Street Journal reported.
Skeptics have warned that privatizing both could drive away buyers of mortgage-backed securities and lead to higher mortgage rates if not done carefully, the news report said.
JAMIE DIMON SAYS RECESSION STILL A POSSIBILITY: ‘I WOULDN’T TAKE IT OFF THE TABLE AT THIS POINT’
In February, Bessent said the release of Fannie and Freddie from government control would depend on mortgage rate implications.
“The priority for a Fannie and Freddie release, the most important metric that I’m looking at, is any study or hint that mortgage rates would go up,” he told Bloomberg.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Trump administration has considered issuing an executive order on housing that could include directing departments to study the privatization of Fannie and Freddie, the Journal reported.
Read the full article here