Commerce Secretary Howard Lutnick suggested that the U.S. government is considering a public offering for Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) “sooner” than people think.
Trump Admin Aims To Keep Mortgages Low Amid GSE IPO talks
In a recent interview with CNBC, Lutnick mentioned the potential for a public offering of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. He explained that the government is considering this move to showcase the value of these assets owned by American taxpayers.
Lutnick clarified that the aim is not to sell a lot but to demonstrate a “mark-to-market,’ showing the American taxpayers the value of the assets they own. He emphasized the Trump administration’s commitment to keeping home mortgage prices as low as possible, stating that any action that raises that spread would be avoided. The focus is on making homeownership easier and more affordable.
When asked about the U.S. government’s 79.9% ownership, Lutnick refrained from providing specific details at this point, citing his obligations. However, he did hint at a potential deal being struck and the company going public, which could potentially be the “largest IPO in history.”
Regarding the timeline, Lutnick revealed, “It Could Well Be A This Year Thing.”
Trump Suggests Fannie, Freddie Could Merge Under ‘MAGA’ Ticker
This news comes on the heels of a report revealing that the Trump administration is seriously considering a plan to sell a portion of its stake in Fannie Mae and its counterpart, Freddie Mac. This move would begin the process of returning the companies to the private sector after more than a decade and a half of government conservatorship, which began during the 2008 financial crisis.
President Donald Trump has also hinted at the possibility of merging Fannie Mae and Freddie Mac and trading them under the name "MAGA." The government would need to take definitive steps soon if it intends to launch the new entity as early as November, as suggested by the backdrop of an image posted by Trump on Truth Social in August.
Hedge-fund billionaire Bill Ackman has voiced his support for a proposal to restructure the capital requirements of these government-sponsored enterprises (GSEs).
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
