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Trump: Government Would Retain Fannie Mae, Freddie Mac Guarantees Amid Push to Take Public

  • President Donald Trump announced plans in May 2025 to privatize Fannie Mae and Freddie Mac while retaining government guarantees.
  • This proposal follows 17 years of government control after the 2008 financial crisis bailout that cost taxpayers $187 billion.
  • Fannie Mae and Freddie Mac currently hold about half of all US mortgages and generate significant revenue but could face a complex privatization process.
  • Mortgage rates are near 6.5%, and experts warn privatization might raise rates between 0.5% and 1% due to increased investor risk, though Trump pledges to maintain implicit government support.
  • The administration’s renewed interest suggests a potential $300 billion government windfall but the plan faces multiagency hurdles and economic concerns about higher housing costs.
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Trump seeks potential end to government control of mortgage giants Fannie Mae and Freddie Mac

In separate social media posts made this past week, President Donald Trump says he is considering privatizing Fannie Mae and Freddie Mac mortgages, raising concerns among economists on potential increases in housing costs.

·Kansas City, United States
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  • 82% of the sources are Center
82% Center
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Newsweek broke the news in United States on Friday, May 23, 2025.
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