Fannie Mae and Freddie Mac Shares Surge as Trump Pushes for Privatization

Over-the-counter (OTC) shares of Fannie Mae and Freddie Mac experienced significant gains on May 28, 2025, following President Donald Trump's announcement of plans to take the mortgage finance giants public. Fannie Mae's shares rose 3.7% to $10.92, while Freddie Mac's shares increased by 7% to $8.13, reaching their highest levels since 2008. 

President Trump stated on Truth Social, "I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong ... ." 

Fannie Mae and Freddie Mac have been under government conservatorship since the 2008 financial crisis. The Federal Housing Finance Agency (FHFA), led by Director Bill Pulte, is expected to play a central ... firms to the private sector. Pulte emphasized the potential value of these companies, stating, "These businesses, in my view, are worth—eventually, will be worth—trillions of dollars worth of value to the American taxpayers." 

Major stakeholders, including Bill Ackman's Pershing Square ... , which holds about 10% of Fannie Mae's public OTC shares, have shown support for the privatization efforts. The combined market value of Fannie Mae and Freddie ... stood at $17 billion as of the last closing price, with shares having increased more than fivefold over the past year. 

The Trump administration's push to privatize these entities aims to end the long-standing government control while maintaining oversight and guarantees to ensure stability in the housing finance market. The FHFA and other federal agencies are expected to provide further details on the privatization path in the coming months.

Sources:

• "Fannie, Freddie OTC shares ... ." Reuters, May 28, 2025.

• "Trump says US to retain oversight, ... ." Reuters, May 27, 2025.

• "Trump says he's seriously considering taking Fannie Mae and Freddie Mac public." Reuters, May 21, 2025.