Trump Considers Listing Fannie Mae and Freddie Mac... "Decision to Be Made Soon"

Key U.S. Housing Finance Institutions
Placed Under Government Control During the 2008 Financial Crisis

U.S. President Donald Trump stated that he is "very seriously considering" listing Fannie Mae and Freddie Mac, which are central to U.S. housing finance, and that a decision will be made soon.

AP Yonhap News

On May 21 (local time), President Trump mentioned on his social networking service, Truth Social, "Fannie Mae and Freddie Mac have very strong cash-generating capabilities, and it appears that now is the right time," adding, "I will have news to share soon."

He also stated that he plans to discuss this matter with U.S. Treasury Secretary Scott Besant, Commerce Secretary Howard Lutnick, and Federal Housing Finance Agency (FHFA) Director William Pulte.

Fannie Mae and Freddie Mac support approximately 70% of all home mortgages in the United States and play a pivotal role in the U.S. housing market. These institutions purchase home mortgages, bundle them into mortgage-backed securities (MBS), and sell them to investors to stimulate housing finance in the U.S. They help Americans purchase homes with lower interest rates and longer repayment terms.

When the housing market collapsed during the 2008 global financial crisis, resulting in massive losses, the U.S. government placed these institutions under the management of the newly established federal oversight agency, the FHFA. During his first term, President Trump attempted to privatize these institutions, but his efforts were repeatedly unsuccessful.

In an interview last February, Secretary Besant stated that "the most important factor in the process of releasing Fannie Mae and Freddie Mac from public management is the potential impact on mortgage rates," and expressed caution, saying that "if there are signs of rising rates, it may become difficult to proceed."

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