Trump seriously considers taking Fannie Mae and Freddie Mac back to the stock market

President Donald Trump announced Wednesday that he is "very serious" about considering allowing mortgage companies Fannie Mae and Freddie Mac to go public again, a move that could redefine the US housing market and end more than a decade of government control over both entities.

In a message posted on his social network Truth Social, Trump said he plans to discuss the matter with top officials in his economic entourage, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Federal Housing Finance Agency Director William Pulte.

"Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right," Trump wrote, assuring that he will make a decision in the "near future."

One key condition: mortgage rates

One of the factors that will determine whether this measure materializes will be the impact on mortgage rates. This was stated in February by Treasury Secretary Scott Bessent, when he said that any release of Fannie and Freddie will depend on studies indicating whether this change would drive up borrowing costs for Americans.

"The most important metric that I'm looking at is any study or hint that mortgage rates would go up," Bessent said in an interview with Bloomberg.

What are Fannie Mae and Freddie Mac?

Both institutions were created by the U.S. Congress to expand access to mortgage credit in the United States. Although they are for-profit corporations with private shareholders, their model is to buy mortgage loans from private lenders and convert them into mortgage-backed securities, a practice that allows banks to free up capital and offer more credit.

During the 2008 housing crisis, Fannie and Freddie suffered significant losses due to the market collapse, prompting the federal government to step in and place them under the conservatorship of the Federal Housing Finance Agency (FHFA). Since then, they have remained under state control, despite previous attempts - including during Trump's first term - to return them to independence.

An old goal returning to the center of the debate

The idea of freeing Fannie and Freddie from government control is not new. Trump had already pushed this possibility during his first term, but the efforts never came to fruition. Now, with new figures on the economic front of his campaign and the current financial strength of both companies, the former president seems determined to reopen the issue.

What would his return to the stock market entail?

If Trump decides to move forward with the IPO of these two entities, it would be a structural change with a major impact on the financial system. Their return to the private market could attract investment and change the way much of U.S. housing finance is managed, although it would also carry risks if not managed cautiously.

For now, there is no definite timetable, but the president's message has already put the issue back on the economic agenda. With Fannie Mae and Freddie Mac showing good financial results, the decision could mark a turning point in the role of the state in the mortgage sector.